Hawaii Commissioner of Securities Tung Chan issued a preliminary order to cease and desist against a Texas-based company and its president and CEO. JAIC Retirement Services, Inc. and Andrew O. Steger are accused of defrauding Hawaii investors in a "prime bank" scheme that netted at least $630,000. The preliminary order alleges the company and Steger solicited investors in Hawaii stating that they would place the monies in a "top" bank. Investors were promised a 37 percent to 45 percent profit in 370 days. The defendants are accused of violating the state's securities registration and antifraud provisions. The preliminary order seeks permanent injunctions against future violations, rescission and restitution and administrative penalties of $160,000 for each respondent.

Warning signs of a prime bank scheme are:

• Excessive guaranteed returns
• Fictitious financial instruments
• Extreme secrecy
• Exclusive opportunity
• Claims of inordinate complexity

Anyone who has been solicited by or transacted business with any of the above named parties is urged to contact the state's Securities Enforcement Branch.

Securities Enforcement Branch:

Oahu 586-2740
Kauai: 274-3141, followed by 62744 and the # sign
Maui: 984-2400, followed by 62744 and the # sign
Hawaii: 974-4000, followed by 62744 and the # sign
Lanai & Moloka`i: 1-800-468-4644 (toll free)
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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