Owner of West Coast Commodities in California Barred by SEC for Soliciting Unregistered SecuritiesWednesday, February 26, 2020
California resident Martin Kinchloe recently submitted an Offer of Settlement to the Securities and Exchange Commission (SEC) to resolve allegations that he and other associated persons and entities defrauded $30 million from over 500 investors. Kinchloe is a resident of Garden Grove, California and solely owns and controls West Coast Commodities, LLC.
According to the Administrative Proceeding on February 13, 2020, Kinchloe, through his company, worked in various capacities for 808 Renewable Energy Corporation (808 Renewable), a company that operates cogeneration (or “combined heat and power”) systems and sells the energy produced by the systems. From 2009 to at least October 2014, Kinchloe allegedly solicited and received commissions, either directly or through West Coast Commodities, for soliciting investors to purchase securities in 808 Renewable. According to the SEC, Kinchloe, his company, 808 Renewable and its founder and president, Patrick Carter, fraudulently raised over $30 million from 500 investors across the U.S. The SEC complaint states that investors believed they would earn return on their investment and help expand 808 Renewable. Instead, Carter misappropriated investor funds to pay Kinchloe’s commissions and other individuals who helped him sell the fraudulent offering. The SEC states that between 2010 and 2014, Kinchloe was paid over $1.1 million in commissions for soliciting and participating in the unregistered sale of the 808 Renewable securities.
Kinchloe has never been registered with the SEC and was last registered with the National Futures Association in 2010. Thus, for receiving compensation for the solicitation of securities without registering with the SEC, Kinchloe violated Sections of the Securities Act of 1933 and the Exchange Act.
On December 11, 2019, a final judgment was entered by consent against Kinchloe, permanently enjoining him from future violations of the Securities Act of 1933 and the Exchange Act. In this Administrative Proceeding, the SEC barred Kinchloe from association with any broker, dealer, investment adviser or other entity related to the securities industry.
Were you a victim of the 808 Renewable Energy Corporation’s alleged fraudulent scheme at the advice of an attorney, a broker, insurance agent, CPA, or financial advisor? If so, call ChapmanAlbin LLC (1-877-410-8172) for a free consultation. We may be able to help you recover the money you lost.