State of Missouri
Office of Secretary of State

Case No. AP-10-37

IN THE MATTER OF:

BURANESS MANAGEMENT, LLC;
ISAAC WILLIAMS; and LATONJIA RODDY,

Respondents.

FINAL ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTIES AND AWARDING COSTS AS TO RESPONDENTS BURANESS MANAGEMENT, LLC AND LATONJIA RODDY

On June 29, 2011, the Enforcement Section of the Securities Division of the Office of Secretary of State (the “Enforcement Section”), by and through Assistant Commissioner, Mary Hosmer, submitted a Petition for Final Order to Cease and Desist and Payment of Civil Penalties and Costs as to Respondents Buraness Management, LLC and Latonjia Roddy (the “Petition”). After reviewing the Petition, the Commissioner issues the following findings of facts, conclusion of law and order:

    PROCEDURAL BACKGROUND

  1. On November 9, 2010, the Enforcement Section submitted a Petition for Order to Cease and Desist and Order to Show Cause Why Civil Penalties and Costs Should Not Be Imposed in the above-styled matter.

  2. On November 15, 2010, the Commissioner issued an Order to Cease and Desist and Order to Show Cause Why Civil Penalties and Costs Should Not Be Imposed (the “C&D Order”).

  3. On November 15, 2010, a representative of the Commissioner sent a copy of the C&D Order via certified mail to Buraness Management, LLC (“Buraness”) at 4579 Laclede Avenue, Suite 266, St. Louis, Missouri 63108.

    1. On November 16, 2010, Lea Kinnaman signed the Domestic Return Receipt, however the envelope was then marked “Undeliverable – Return to Sender” and the copy of the C&D Order was returned on March 23, 2011.

    2. On December 6, 2010, a representative of the Commissioner sent a letter to the St. Louis City Sheriff’s office requesting personal service of the C&D Order on Buraness at the same address. The letter was received at the St. Louis City Sheriff’s office on December 8, 2010. A response from the St. Louis City Sheriff’s office dated December 21, 2010 stated, “this is a UPS Mailboxes Etc., no suite 266, only PO Boxes.”

  4. On November 15, 2010, a representative of the Commissioner sent a copy of the C&D Order via certified mail to Latonjia Roddy (“Roddy”) at 2553 Westfall Lane, St. Louis, Missouri 63136. The certified mail was returned and marked “Unclaimed” on March 16, 2011.

  5. On November 17, 2010, a representative of the Commissioner sent a letter to the St. Louis County Sheriff’s office requesting personal service of the C&D Order on Roddy.

  6. On December 16, 2010, the St. Louis County Sheriff’s Office sent a notice to the Securities Division indicating that Roddy was “NOT FOUND, by making due and diligent search for the within named defendant and not finding the person in this county.”

  7. On January 4, 2011, an investigator in the Enforcement Section contacted the Jennings, Missouri post office and spoke with the manager. The manager stated that the Jennings, Missouri post office had no forwarding address on file for Roddy.

  8. On January 5, 2011, an investigator in the Enforcement Section spoke with a field agent for the Missouri Real Estate Commission. The field agent provided the investigator with an address for Roddy of 5932 Dressell Avenue, St. Louis, Missouri 63120 (“Dressell Address”).

  9. On January 14, 2011, a representative of the Commissioner sent a copy of the C&D Order to the St. Louis City Sheriff’s Office for personal service to Roddy at the Dressell Address. On January 18, 2011, the St. Louis City Sheriff’s office received the request.

  10. On January 14, 2011, a representative of the Commissioner sent a copy of the C&D Order via certified mail to Roddy in a second attempt for service on Roddy at the Dressell Address.

  11. On February 4, 2011, a representative of the Commissioner received a response from the St. Louis City Sheriff’s Office which indicated that Roddy “does not live at given address.”

  12. On February 7, 2011, a representative of the Commissioner reviewed the USPS Track and Confirm notice on the USPS website which indicated that the certified mail sent to Roddy on January 14, 2011, was “Unclaimed” on February 5, 2011. On February 23, 2011, the C&D Order was returned and marked “Not deliverable as addressed. Unable to forward.”

  13. On February 28, 2011, an investigator in the Enforcement Section left a voice mail message at Roddy’s telephone number. In this message the investigator stated that the Enforcement Section was attempting to serve the C&D Order on Roddy. In addition, the investigator stated that if the Enforcement Section received no response from Roddy, service would be made on the Commissioner. No response has been received from Roddy.

  14. On May 12, 2011, the Commissioner issued a Final Order to Cease and Desist as to Respondent Isaac Williams, ordering civil penalties and the costs of the investigation.

  15. On May 13, 2011, Respondents Buraness and Roddy were served with the C&D Order pursuant to Section 409.6-611(b), RSMo. (Cum. Supp. 2009), by leaving a copy of this process in the office of the Commissioner. A copy of this notice and a copy of this process were sent to Respondents Buraness and Roddy at their last known addresses.

  16. Respondents Buraness and Roddy failed to request a hearing within the time allowed by Section 409.6-604, RSMo. (Cum. Supp. 2009), and did not otherwise contact or communicate with the Commissioner at any time.

  17. In the Petition, the Enforcement Section requested a Final Order to Cease and Desist as to Respondents Buraness and Roddy in this matter.

  18. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty in the amount of ten thousand dollars ($10,000) against each of Respondent Buraness and Respondent Roddy for multiple violations of Section 409.3-301, RSMo. (Cum. Supp. 2009).

  19. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty in the amount of ten thousand dollars ($10,000) against Respondent Roddy for multiple violations of Section 409.4-402(a), RSMo. (Cum. Supp. 2009).

  20. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty in the amount of ten thousand dollars ($10,000) against Respondent Buraness for violations of Section 409.4-402(d), RSMo. (Cum. Supp. 2009).

  21. In the Petition, the Enforcement Section requested that the Commissioner issue an order imposing a civil penalty in the amount of ten thousand dollars ($10,000) against each of Respondent Buraness and Respondent Roddy for violations of Section 409.5-501, RSMo. (Cum. Supp. 2009).

  22. In the Petition, the Enforcement Section requested that the Commissioner issue an order requiring Respondent Buraness and Respondent Roddy, jointly and severally with Respondent  Isaac Williams, to pay the costs of the investigation in this matter in the amount of two thousand eight hundred and twenty-seven dollars and fifty cents ($2,827.50).

  23. FINDINGS OF FACT

  24. The Commissioner adopts and incorporates the Findings of Fact, paragraphs 1, 4, and 7 – 38, in the C&D Order as to Respondent Buraness.

  25. The Commissioner adopts and incorporates the Findings of Fact, paragraphs 1, 4 – 5, 7 – 10, 27 – 32, and 35 – 38, in the C&D Order as to Respondent Roddy.

  26. CONCLUSION OF LAW

  27. The Commissioner adopts and incorporates the Conclusions of Law in the C&D Order, paragraphs 47 – 51, and 56 – 63, as to Respondent Buraness.

  28. The Commissioner adopts and incorporates the Conclusions of Law in the C&D Order, paragraphs 47 – 55 and 60 – 63, as to Respondent Roddy.

  29. This Order is in the public interest and consistent with the purposes intended by the Missouri Securities Act of 2003.

ORDER

NOW THEREFORE it is hereby ORDERED that:

  1. The Cease and Desist Order entered in Case No. AP-10-37 on November 15, 2010, is FINAL as to Respondent Buraness and Respondent Roddy.

  2. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2009), Respondent Buraness shall pay a civil penalty in the amount of four thousand dollars ($4,000) to the State of Missouri for multiple violations of Section 409.3-301, RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Buraness shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  3. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2009), Respondent Roddy shall pay a civil penalty in the amount of two thousand dollars ($2,000) to the State of Missouri for multiple violations of Section 409.3-301, RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Roddy shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  4. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2009), Respondent Roddy shall pay a civil penalty in the amount of one thousand dollars ($1,000) to the State of Missouri for violation of Section 409.4-402(a), RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Roddy shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  5. Pursuant to Section 409.4-604(d), RSMo. (Cum. Supp. 2009), Respondent Buraness shall pay a civil penalty in the amount of two thousand dollars ($2,000) to the State of Missouri for multiple violations of Section 409.4-402(d), RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Buraness shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  6. Pursuant to Section 409.4-604(d), RSMo. (Cum. Supp. 2009), Respondent Buraness shall pay a civil penalty in the amount of six thousand dollars ($6,000) to the State of Missouri for multiple violations of Section 409.5-501, RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Buraness shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  7. Pursuant to Section 409.4-604(d), RSMo. (Cum. Supp. 2009), Respondent Roddy shall pay a civil penalty in the amount of three thousand dollars ($3,000) to the State of Missouri for multiple violations of Section 409.5-501, RSMo. (Cum. Supp. 2009). This amount shall be made payable to the State of Missouri and paid within thirty (30) days of the date of this Order. The Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri. Respondent Roddy shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  8. Pursuant to Section 409.6-604(e), RSMo. (Cum. Supp. 2009), Respondent Buraness and Respondent Roddy shall pay, within thirty (30) days from the date of this Order, the additional sum of two thousand eight hundred and twenty-seven dollars and fifty cents ($2,827.50) as reimbursement for costs of the investigation and administration of this matter. Respondent Buraness and Respondent Roddy, along with Respondent Isaac Williams, as ordered in the May 12, 2011 final order as to Respondent Williams, shall be jointly and severally liable for this amount. This amount shall be made payable to the Investor Education and Protection Fund. Respondent Buraness and Respondent Roddy shall deliver this payment to the Securities Division, 600 West Main Street, P.O. Box 1276, Jefferson City, Missouri 65102.

  9. Pursuant to Section 409.6-604(f), RSMo. (Cum. Supp. 2009), this matter shall be referred to the Missouri Attorney General’s Office to collect the penalties and costs described in this Order, as necessary.

  10. Respondent Buraness and Respondent Roddy shall pay their own costs and attorneys’ fees with respect to this matter.

SO ORDERED:

WITNESS MY HAND AND OFFICIAL SEAL OF MY OFFICE AT JEFFERSON CITY, MISSOURI THIS 7TH DAY OF JULY, 2011.

ROBIN CARNAHAN
SECRETARY OF STATE

(Signed/Sealed)
MATTHEW D. KITZI
COMMISSIONER OF SECURITIES


 

CERTIFICATE OF SERVICE

I hereby certify that on this 7th day of July, 2011, a copy of the foregoing Final Order to Cease and Desist in the above styled case was mailed by U.S. certified mail, postage prepaid to:

Buraness Management, LLC
4579 Laclede Avenue, Suite 266
St. Louis, Missouri 63108

Latonjia Roddy
5932 Dressell Avenue
St. Louis, Missouri 63120

and by hand-delivery to:

Mary S. Hosmer
Assistant Commissioner, Securities Division

_______________________________
John Hale, Specialist