A man who resides in Mesa has been ordered by the Court to pay $1.5 million to compensate real estate investors he had duped into purchasing investments that turned out to be worthless. The Arizona Corporation Commission’s Securities Division has run a long time investigation of Brian Patrick Langenbach, who formed Gilbert-based Land-Corp.
The investigation came about after several complaints had been filed against the Corporation. The investigation revealed that Langenbach had acquired shares of stocks from Missouri-based Petro America Corp. and then resold them to finance his business. The Associated Press claims that Owen Hawkins, who is the owner of Petro America, was charged with securities fraud and aggravated currency structuring while in court last month. Allegations against Hawkins claim that his company had $284 billion in assets in gold mines and oil trading and that Mr. Hawkins failed to invest the money, rather used it as his sole income.
The Corporation Commission complaint filed states that Langenbach sold more than two million PAC stock shares $474,030 to 187 investors. Langenbach is also guilty of selling shares in eleven real estate investments to six investors in Arizona, California, and New York. To each investor, he promised they would receive large profits from their investments. But, the decline in the real estate market made Langenbach’s business fail miserably, which made him unable to repay all of the real estate investors back. Langenbach was then fined for $50,000 in penalties by the Commission under allegations that clearly state that he was an unregistered seller and he illegally sold unregistered shares of stock.
The Commission is trying to stop the sale of unregistered investment schemes so that they may better protect investors. The Commission conducted an investigation of Mesa-based Secure Resolutions and fined them for $3.5 million in restitution and $150,000 in administrative penalties for fraudulently selling company stock, promissory notes, and options to at least 100 investors. The Commission warns individuals to verify registration of sellers, investment programs, and their history at all times.