Schofield soldier
fined $25,000

A former Schofield Barracks soldier who sent 300 investment solicitation letters while serving in Afghanistan has been ordered to stop making offers or sales of securities to Hawaii consumers.

Have you been contacted? Any Hawaii residents who have been contacted by the Rileys or who might have any information regarding this matter are urged to contact the State Securities Enforcement Branch at 586-2740. The toll-free number for the neighbor islands are: » Big Island: 974-4000, then enter 62740 and #. » Kauai: 274-3141, then enter 62740 and #. » Maui: 984-2400, then enter 62740 and #. » Molokai and Lanai: 800-468-4644, then enter 62740 and #.

The state Department of Commerce and Consumer Affairs also warned consumers yesterday to beware any investment offers from Michael K. Riley and his wife, Tammy L. Riley, of Wahiawa, who did business under the name Parallel Alliance.

Securities Commissioner Corinna Wong has issued a preliminary order for the couple to stop selling securities in Hawaii where neither they nor their business is properly registered. The state has imposed a civil penalty of $25,000 against them.

Public information officer Christine Hirasa said the case came to the attention of the Securities Enforcement Branch when a consumer asked them about the legitimacy of the business and sent a copy of the contracts.

According to the state, Riley mailed about 300 solicitation letters to residents in Hawaii and Montana asking them to invest $55 a month for five years (a total of $3,300). Investors were told their money would be used to purchase businesses for profit. The Rileys promised that investors would receive profits from the purchased business after 10 years.

State securities law requires anyone wishing to sell investment interests to register with the state. Neither the Rileys nor Parallel Alliance are registered or authorized to offer, sell or solicit securities in the state.

State law also prohibits engaging in acts, practices or courses of business that perpetuate a fraud upon the public, including the failure or omission to disclose material facts.