(CN) - A Riverside County man who uses six aliases violated a court order to defraud investors of $253,000 in bogus securities, California's Corporations Commissioner says in Los Angeles Superior Court. The state sued Gerard Suite, who previously faced felony perjury and burglary charges, and his corporations, Technology Communication Management, Cashnet Asset Management aka the Breakfast Trade, Windsor Equity Partners, Discover Business Solutions, and Discover Portfolio Services.
Suite lives in Riverside County and operates his businesses out of Orange and Los Angeles Counties, according to the complaint.
Corporations Commissioner Preston DuFauchard says that from 2004 into 2006, Suite - who was not a certified investment adviser - sold "unqualified, non-exempt securities" in the form of investment contracts, promissory notes, company shares and investment units under the guise of numerous business entities, including Asset Guaranteed Account II, TCM DV IV Gold and Cash Net Real Estate Mortgage Partners, among others.
On July 25, 2006, the states issued a Desist and Refrain order to Suite and TCM to prohibit the sale of such securities, and for misleading consumers.
"The misrepresentations included a statement from Suite telling an investor that her money would be treated as a rollover of her retirement account, when in fact, it was treated as a cash advance," DuFauchard says.
"On September 25, 2006, Suite and TCM were personally served with the Order and failed to request a hearing contesting the Order and the Order became final," according to the complaint.
Despite that order, the state says, Suite and his companies continued selling fraudulent securities and did not return investors' principal as promised.
Suite also goes by the names Gerard Sweet, Raul Jerard Anthony, R.J. Anthony, Gerard S. Rawle, Rawle Girard Suite, and Rawle Girard Girard, according to the complaint.
He also claimed that Gerard Suite and Cashnet's purported president and CEO, R.J. Anthony, are "separate individuals and officers of different companies, when in fact, R.J. Anthony and Gerard Suite are both aliases used by one individual," according to the complaint.
Suite also failed to tell investors that he and TCM had been banned from selling "unqualified, non-exempt" securities in California, that Suite had been "charged with felony perjury and felony burglary," that Cashnet and Windsor's corporate status had been suspended, and that TCM's corporate status had been revoked, DuFauchard says.
The state seeks $253,437.44 in restitution, at least $850,000 for violations of the California Corporations Code and more than $150,000 for violations of the Desist and Refrain order.