HONOLULU – The state Department of Commerce and Consumer Affairs’ (DCCA) Commissioner of Securities issued a preliminary order to cease and desist and notice of right to hearing against Leilani Embernate, Joycelyn Embernate, and their financial consulting company, Twin Stars
HONOLULU – The state Department of Commerce and Consumer Affairs’ (DCCA) Commissioner of Securities issued a preliminary order to cease and desist and notice of right to hearing against Leilani Embernate, Joycelyn Embernate, and their financial consulting company, Twin Stars of the Pacific, Inc., for violating state securities laws, according to a press release by the DCCA.
The order asserts that, in March 2008, the Embernates solicited a Big Island resident to invest in a real estate development project they were planning, promising a 7 percent interest return after a year and a half. As a result, the Hawaii resident invested $100,000.
Leilani Embernate and Joycelyn Embernate are accused of failing to disclose to the investor that the funds would be used to pay back a previous investor; to make a “loan” to one of Leilani Embernate’s businesses; and, for telephone, credit card, and insurance payments. The real estate development project never came to fruition and the Hawaii investor remains unpaid.
State securities laws include anti-fraud provisions, requiring both securities and persons soliciting or transacting securities to be registered with the DCCA’s Securities Compliance Branch. The order asserts that the Respondents violated these anti-fraud provisions by employing deceptive schemes and devices to perpetuate fraud. It further alleges that the investment they sold to the investor was an unregistered security.
The order seeks $50,000 in penalties in addition to a permanent injunction against Leilani Embernate and Joycelyn Embernate from transacting securities in the state, rescission, and a refund to the investor.
The DCCA took previous action against Leilani Embernate in 2012, revoking both her mortgage solicitor’s license and real estate license. Joycelyn Embernate’s mortgage solicitor license was terminated in 2009, and she forfeited her real estate license in 2012.
According to Hawaii registry at www.hawaiiregistry.org, Twin Stars of the Pacific has been dissolved.
Anyone who has been solicited by or transacted securities or investment-related business with Leilani Embernate, Joycelyn Embernate, or Twin Stars of the Pacific, or who may otherwise have information regarding this matter is urged to contact the DCCA’s Securities Enforcement Branch (SEB) at 808-586-2740 or toll free at 1-877- HI-SCAMS.
