Iraqi Dinar Chat, Information, News, Facts, Guru Forums, RV and Revaluation info

Follow us! Follow us!
+ Reply to Thread
Results 1 to 10 of 10

Thread: State of California Desist and Refrain Order against US Dinar Bank/US DinerEx

  1. #1
    Administrator hopefultxn's Avatar
    Join Date
    Feb 2010
    Posts
    399
    Thanks
    31
    Thanked 46 Times in 36 Posts

    State of California Desist and Refrain Order against US Dinar Bank/US DinerEx

    STATE OF CALIFORNIA
    BUSINESS, TRANSPORTATION AND HOUSING AGENCY
    DEPARTMENT OF CORPORATIONS
    TO: US Dinar Bank
    US DinarEx
    David Pratt
    165 West Maple Street
    San Diego, CA 92103

    DESIST AND REFRAIN ORDER
    (For violations of sections 25110, 25401, 29520, 29535 and 29236 of the Corporations Code)
    The California Corporations Commissioner (“Commissioner”) finds that:

    1. US Dinar Bank is an entity that does business and has offices located in California but is
    not registered with the California Secretary of State. After the California Department of Financial
    Institutions contacted US Dinar Bank about the use of the word “bank” in its name, US Dinar Bank
    changed its name to US DinarEx on April 14, 2011. US Dinar Bank and US DinarEx (hereinafter
    “US Dinar”) have never been registered with the United States Commodity Futures Trading
    Commission (“CFTC”) or a member of the National Futures Association (“NFA”).

    2. David Pratt (“Pratt”) during relevant times resided in California and acted as the CEO
    or manager of US Dinar and was responsible for the operations of US Dinar. Pratt solicited investors
    on the internet via US Dinar’s websites at www.usdinarbank.com and www.usdinarex.com. The
    websites offer investors an Iraqi bank account for dinar and dollar exchange. (The dinar is the
    currency of Iraq.) Pratt has never been registered with the CFTC or a member of the NFA.

    3. US Dinar and Pratt provided potential investors with an information package. Pratt
    told investors that US Dinar will open an interest (3%) bearing Iraqi savings account at a large
    commercial bank in Iraq, Al Warka Bank. This account would enable an investor to buy and sell
    dinars and have online review 24/7.

    4. Pratt stated that the bank account is managed by William Burbank and that the return on
    an investment would be four times the initial investment within a short period of time and investors
    would be charged 20% of the total profit for managing the account. Pratt offered dinars at a
    “discount” for between 75 and 85 cents and stated dinars would be listed on FOREX, the foreign
    exchange market. Pratt stated “the Dinar will open trading at between $1.50-$2.00 minimum.”
    Pratt projected the Dinar to rise “within days to the $3.00-$3.50 range.”

    5. US Dinar solicits clients that are unsophisticated individuals with minimal or no
    investment experience. A client receives and signs a customer agreement in which US Dinar
    agrees to accept a customer and to open and maintain accounts for dinar trading in which US Dinar
    is authorized to act as broker or agent, or as principal to execute a customer’s orders.

    6. US Dinar and Pratt violated provisions of the California Corporate Securities Law
    of 1968 and the California Commodity Law of 1990, respectively set forth in Corporations Code
    section 25000 et seq. and section 29500 et seq.

    7. US Dinar’s offering of an interest bearing Iraqi “custodial” bank account is an
    investment contract that is not exempt from the qualification requirements of the Corporate
    Securities Law of 1968. US Dinar and Pratt offered or sold investment contracts in violation of
    Corporations Code sections 25110.

    8. US Dinar and Pratt offered and sold commodity contracts or options to investors by
    means of fraudulent acts, which are in violation of Corporations Code sections 25401 and 29536.
    These include, but are not limited to, the following misrepresentations and omissions of material
    fact:

    MISREPRESENTATIONS
    a. US Dinar Bank was not a “Bank” or financial institution;
    b. Investors would receive a return of three percent (3%) on the
    amount of their respective investment;

    OMISSIONS
    a. US Dinar Bank, US DinarEx and David Pratt were not registered with
    the CFTC; and,
    b. US Dinar Bank, US DinarEx and David Pratt did not qualify the
    investment offerings in California.

    9. US Dinar sold or purchased, offered to sell or purchase commodity contracts or options,
    or offered to enter into, or entered into as a seller or purchaser commodity contracts or options in
    California.

    10. The commodity contracts and options that US Dinar sold or purchased, offered to sell
    or purchase, or offered to enter into or entered into as a seller or purchaser on behalf of investors,
    were primarily for speculative or investment purposes, in that, the contracts were offered,
    purchased, sold, or entered into based on quoted price changes and fluctuations in particular
    contracts, rather than as a means of acquiring these physical commodities.

    11. The contracts or options US Dinar sold or purchased, offered for sale or purchased, or
    offered to enter into or entered into as a seller or purchaser are commodity contracts and
    commodity options, as respectively defined in Corporations Code sections 29505 and 29510.

    12. US Dinar’s above-described transactions do not meet the exemptions found in sections
    29530, 29531 and 29532 of the Corporations Code and are in violation of Corporations Code
    section 29520.

    13. Corporations Code section 29509 defines a commodity merchant as a futures
    commission merchant, commodity pool operator, commodity trading advisor, introducing broker,
    leverage transaction merchant, an associated person of the foregoing, a floor broker and any other
    person required to register with the CFTC.

    14. Corporations Code section 29535 states no person shall engage in the trade or business
    or otherwise act as a commodity merchant unless the person is registered or temporarily licensed
    with the CFTC for each activity constituting that person as a commodity merchant. US Dinar acted
    as a commodity merchant and is not exempt from the registration and licensing requirements.

    15. Corporations Code section 29536 states it is unlawful for any person, directly or
    indirectly, in connection with the purchase or sale of, the offer to sell, the offer to purchase, the
    offer to enter into, or the entry into, a commodity, commodity contract, or commodity option to do
    any of the following: (a) to willfully employ any device, scheme, or artifice to defraud, (b) to
    willfully make any false report, enter any false record, make any untrue statement of a material
    fact, or omit to state a material fact necessary in order to make the statements made, in the light of
    the circumstances under which they were made, not misleading, (c) to willfully engage in any
    transaction, act, practice, or course of business which operates or would operate as a fraud or
    deceit upon any persons, or (d) to willfully misappropriate or convert the funds, security, or
    property of any other person.

    16. US Dinar Bank, US DinarEx and David Pratt failed to comply with the qualification
    provisions when they offered and sold securities in violation of Corporations Code section 25110.

    17. US Dinar Bank, US DinarEx and David Pratt made misrepresentations or omissions of
    material facts that violated Corporations Code section 25401.

    Based upon the foregoing, the California Corporations Commissioner is of the opinion that
    US Dinar Bank, US DinarEx and David Pratt sold or purchased, or offered to sell or purchase
    commodities under commodity contracts or options, or offered to enter into, or entered into, as a
    seller or purchaser commodity contracts or options.

    Pursuant to section 29542 of the Corporations Code, US Dinar Bank, US DinarEx and
    David Pratt are hereby ordered to desist and refrain from the further sale or purchase or offer to
    sell or purchase any commodity contract or under any commodity option, including, but not
    limited to, contracts and from the further offer to enter into, or entering into, as sellers or
    purchasers of any commodity contract or any commodity option in the State of California, unless
    and until such activity is not in violation of Corporations Code section 29520 of the law.

    The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David Pratt are
    engaged in a trade or business as a commodity merchant without registration or licensure, then in
    effect, in violation of Corporations Code section 29535.

    Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David
    Pratt are hereby ordered to desist and refrain from conducting business as a commodity merchant
    in the State of California, until registration or licensure has been made with the CFTC or unless
    exempt.

    The Commissioner is of the opinion that US Dinar Bank, US DinarEx and David Pratt
    engaged in the above-described offer and sale of commodities, commodity contracts or commodity
    options in this State by willfully making an untrue statement of material fact or omitting to state a
    material fact necessary in order to make the statements made, in the light of the circumstances
    under which they were made, not misleading.

    Pursuant to Corporations Code section 29542, US Dinar Bank, US DinarEx and David
    Pratt are hereby ordered to desist and refrain from offering or selling any commodity,
    commodity contracts or commodity options in the State of California by means of any fraudulent
    act including, but not limited to, willfully making an untrue statement of material fact or omitting
    to state a material fact necessary in order to make the statements made, in the light of the
    circumstances under which they were made, not misleading.

    The California Corporations Commissioner is of the opinion that the activities of US
    Dinar Bank, US DinarEx and David Pratt involve the unqualified offers or sales of securities in
    California that are subject to qualification under the CSL, without such offers or sales first being
    qualified or exempt, in violation of Corporations Code section 25110.

    Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David
    Pratt are hereby ordered to desist and refrain from the further offer or sale of securities including,
    but not limited to, investment contracts, unless and until the offers and sales have been duly
    qualified under the Corporate Securities Law or unless exempt.

    The California Corporations Commissioner is also of the opinion that such offers and sales
    of securities in this state were made by means of written or oral communications which included
    an untrue statement of a material fact or omitted to state a material fact necessary in order to make
    the statements made, in the light of the circumstances under which they were made, not
    misleading, in violation of Corporations Code section 25401.

    Pursuant to Corporations Code section 25532, US Dinar Bank, US DinarEx and David
    Pratt are hereby ordered to desist and refrain from offering or selling or buying or offering to buy
    any security in the State of California by means of any written or oral communication which
    includes an untrue statement of a material fact or omits to state a material fact necessary in order
    to make the statements made, in the light of the circumstances under which they were made, not
    misleading.

    This Order is necessary, in the public interest, for the protection of investors and consistent
    with the purposes, policies, and provisions of the California Commodity Law of 1990 and the
    Corporate Securities Law of 1968.

    Dated: June 10, 2011
    Los Angeles, California
    PRESTON DuFAUCHARD
    California Corporations Commissioner
    By________________________________
    ALAN S. WEINGER
    Deputy Commissioner
    Enforcement Division

    Link
    Last edited by hopefultxn; 07-20-2011 at 04:26 PM.

  2. The Following 2 Users Say Thank You to hopefultxn For This Useful Post:

    breather (07-21-2011), Sistergoldenhair (07-20-2011)

  3. #2
    Senior Member Sistergoldenhair's Avatar
    Join Date
    Jul 2011
    Posts
    180
    Thanks
    62
    Thanked 150 Times in 115 Posts
    Uh oh!!! Very interesting!!

  4. #3
    Administrator hopefultxn's Avatar
    Join Date
    Feb 2010
    Posts
    399
    Thanks
    31
    Thanked 46 Times in 36 Posts
    I was just looking on Warka's site to see what interest rate they are offering on accounts, since this states that David Pratt's company was offering 3%.

    Warka is offering 4% on USD held accounts and 7% on IQD held accounts (annual).

    So the question is simply, has the interest rate changed or has his company been getting the 4% of interest off each account holders IQD account they set up? If so, talk about a scumbag... LOL

  5. #4
    Administrator shela1153's Avatar
    Join Date
    Feb 2010
    Posts
    2,002
    Thanks
    490
    Thanked 809 Times in 628 Posts
    Is this the David Pratt we heard about through, I think it was PTR? IMO a lot of these folks are going down! The sooner the better imo

  6. #5
    Senior Member Sistergoldenhair's Avatar
    Join Date
    Jul 2011
    Posts
    180
    Thanks
    62
    Thanked 150 Times in 115 Posts
    Quote Originally Posted by hopefultxn View Post
    I was just looking on Warka's site to see what interest rate they are offering on accounts, since this states that David Pratt's company was offering 3%.

    Warka is offering 4% on USD held accounts and 7% on IQD held accounts (annual).

    So the question is simply, has the interest rate changed or has his company been getting the 4% of interest off each account holders IQD account they set up? If so, talk about a scumbag... LOL

    You are being way too kind!! LOL!!

  7. #6
    Senior Member Sistergoldenhair's Avatar
    Join Date
    Jul 2011
    Posts
    180
    Thanks
    62
    Thanked 150 Times in 115 Posts
    Quote Originally Posted by shela1153 View Post
    Is this the David Pratt we heard about through, I think it was PTR? IMO a lot of these folks are going down! The sooner the better imo
    One by one!! They will all fall!!

  8. #7
    Administrator hopefultxn's Avatar
    Join Date
    Feb 2010
    Posts
    399
    Thanks
    31
    Thanked 46 Times in 36 Posts
    Quote Originally Posted by shela1153 View Post
    Is this the David Pratt we heard about through, I think it was PTR? IMO a lot of these folks are going down! The sooner the better imo
    Not sure if they were promoting his company or not, but it is the same David Pratt whose articles (advertisements) that insinuate that those holding physical could be left holding the bag, and that his company was a safer route for investing in the dinar.

    SD Post Link #1

    SD Post Link #2

  9. #8
    Junior Member
    Join Date
    Jun 2010
    Posts
    2
    Thanks
    0
    Thanked 0 Times in 0 Posts
    I can assure you that PTR has not promoted David Pratt in any way!

  10. #9
    Junior Member
    Join Date
    Jul 2011
    Posts
    7
    Thanks
    2
    Thanked 2 Times in 1 Post
    I am so glad they finally caught up with this guy - he would scare people about this investment and make money off of them as well...

  11. #10
    Administrator hopefultxn's Avatar
    Join Date
    Feb 2010
    Posts
    399
    Thanks
    31
    Thanked 46 Times in 36 Posts
    Quote Originally Posted by TheCallSquad View Post
    I am so glad they finally caught up with this guy - he would scare people about this investment and make money off of them as well...
    There are a lot of people making money off of the people that have speculated on the dinar. There are a number of dinar sites that, in my opinion, are nothing but parasites preying on people that are falling for their constant tales of RV tomorrow or pushing trust funds under the guise of necessity for a profit they cannot even promise.

    In short, it's my opinion that Pratt is not the only person that should have desist and refrain orders placed up them - and it should be more than just one state does it.

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts