A Texas man who sought investors on the Craigslist’s Denver website for a motorcycle repair business has agreed to immediately stop offering securities in Colorado, according to Colorado Securities Commissioner Fred Joseph.
Named in the cease and desist order is Brian Creamer, who was doing business as Re-Cycles Motorsports, located in West Detroit, Tex.
The Division of Securities alleged that from November 2010 until February, Creamer offered to sell securities to Colorado investors by placing ads on the Craigslist website seeking financing of $55,000 to $75,000 for Re-Cycles Motorsports.
Creamer allegedly told would-be investors that he would use the money to purchase wrecked motorcycles from insurance companies, repair them and re-sell them for a profit.
He also allegedly said the money would be used to rent a building and obtain a business license.
Investors were promised 30 percent of sales, which would approximate a return up to or greater than $100,000 on their investment, Colorado investigators alleged.
The Colorado Division of Securities claimed Creamer failed to register the securities offering and, by offering the investment opportunity to the public through the use of the ads, he was unable to take advantage of any private offering exemption under the Colorado Securities Act.
The order enjoins Creamer from selling any security in Colorado without first registering the securities in Colorado.Howard Pankratz: 303-954-1939 or Pankratz@denverpost.cam.
