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Docket No. S-03539A-03-0000

53.

This conduct violates A.R.S. § 44-1842.

VI.

VIOLATION OF A.R.S. § 44-1991

(Fraud in Connection with the Offer or Sale of Securities)

54. In connection with the offer or sale of securities within or from Arizona, RESPONDENTS

directly or indirectly: (i) employed a device, scheme or artifice to defraud; (ii) made untrue statements of

material fact or omitted to state material facts which were necessary in order to make the statements

made not misleading in light of the circumstances under which they were made; and (iii) engaged in

transactions, practices or courses of business which operated or would operate as a fraud or deceit upon

offerees and investors. RESPONDENTS' conduct includes, but is not limited to, the following:

a)

RESPONDENTS misrepresented the safety of their investments by claiming that

Universal Lease investors were fully secured, when in fact the value of RESPONDENTS’ real estate

holdings was never shown to support the vast amount of funds invested into the program;

b)

RESPONDENTS failed to disclose to investors any salient financial and/or background

information about the issuer, its affiliates, or its principals;

c)

RESPONDENTS failed to disclose to investors that a sales commission of at least 10

percent was routinely paid to YUCATAN sales agents consummating YUCATAN investments;

...

...

...

d)

RESPONDENTS failed to disclose to investors that administrative orders reflecting prior

securities violations have been issued against RESPONDENTS in several other jurisdictions.

55. This conduct violates A.R.S. § 44-1991.

VII.

TEMPORARY ORDER

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