News

ATM ISO hit for violating securities registration, anti-fraud provisions

May 25, 2006

Denver Business Journal: Colorado Securities Commissioner Fred Joseph has issued a cease-and-desist order against California-based One Source Financial Group LLC and two of its principals - Mark Lebowitz and Alex Roderick of Costa Mesa, Calif. - for violating the securities registration and anti-fraud provisions of the Colorado Securities Act. At least 23 Colorado investors have invested more than $600,000 with the company, state officials said.

Securities officials allege that from at least October 2005, OneSource has been selling ATMs to investors in Colorado for $4,000 apiece. OneSource told investors the ATMs would be placed in casinos in Las Vegas and Atlantic City, N.J., or in Chevron gas stations, and that investors would receive $1 for each transaction.

But the state securities division said the ATMs never existed and that interests in the ATMs should have been registered with the Colorado securities commissioner. The state also alleged that Lebowitz and Roderick made false statements and omissions of material fact to investors, all in violation of the anti-fraud provisions of the act.