Liquid Planet Water Park, Owner Ordered to Cease and Desist | Goodman & Nekvasil P.A. May Recover Investor Losses
Owner of Liquid Planet Water Park Ordered to Cease and Desist by State of New Hampshire
ACCORDING TO THE STATE OF NEW HAMPSHIRE BUREAU OF SECURITIES REGULATION:
In this case, the Bureau has alleged that the Respondent, through Liquid Planet Holdings, LLC (hereinafter “LPH”), sole owner of Liquid Planet Water Park, LLC (hereinafter “LPWP”), raised money through the sale of securities to various investors in violation of the requirements of NH RSA 421-B beginning in 2007. In addition, the Bureau alleges that the Respondent failed to disclose material information to investors.
According to the Bureau, after the Respondent brought in the initial investors, he directed them to solicit new investors and incentivized this recruitment by giving free shares to existing investors who brought in new investors. Additionally, new investors could buy more shares at a reduced rate of $750 dollars per share. In addition, the Respondent got the word out that LPH shares were available for purchase through the use of general solicitation and advertisement. The Respondent also put on investor presentations (tours) at LPWP open to anybody interested in investing and offered an Investor Incentive Program which offered free LPWP passes and reduced prices to new investors. LPH/LPWP also put up a billboard advertisement on the side of LPWP’s building and the road leading to LPWP soliciting investors and ran an ad on the LPWP website seeking investors as well as publishing a monthly newsletter soliciting investment in LPH/LPWP. Single page fliers were also distributed by the Respondent and LPWP seeking additional investors. The Bureau alleges that many of these general solicitations and advertisements continued from 2010 to 2015 and that some of the investment in LPH during this time frame was a direct result of the Respondent and LPH/LPWP’s use of general solicitation and advertising.
The Bureau further alleges that near the end of 2011 and the beginning of 2012, the Respondent stopped paying for liability and property insurance and stopped making payments on credit card debt. The Respondent also began a campaign to solicit creditors for a debt repayment plan reached with various creditors, including the Small Business Administration (hereinafter “SBA”). The Bureau also alleges that during the periods the Respondent was soliciting new investors in 2011 and 2012, LPWP was in default on a more than $1,000,000 loan from the SBA but failed to disclose this material information to investors. The Respondent and LPW/LPWP were in default of the SBA loan and continued to be in default from October of 2009 to May of 2012. According to the terms of the SBA loan and related documents, at any moment during the period of default the SBA had the right to demand immediate payment of the amount still owed, to file suit, and to take possession and sell the waterpark. According to the Bureau, this information was not disclosed to many investors who 2 were solicited during this timeframe. After two compromises, the note continued in default until the waterpark was foreclosed on.
In the period from the end of 2011 to the close of the business in 2015, additional investors in LPH were brought if1 by the Respondent. The Bureau alleges that the Respondent consistently failed to disclose additional material information to these investors, including that LPWP did not have liability and property insurance.
Lastly, the Bureau alleges that for the entire period LLC membership interests were being issued, the Respondent, LPH, and LPWP did not have an issuer-dealer or issuer-dealer agent license. Additionally, the LLC membership units were not registered or exempt from registration or a federal covered security as defined by RSA 421-B.
Investors in Liquid Planet Water Park and/or Liquid Planet Holdings LLC May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in Liquid Planet Water Park and/or Liquid Planet Holdings LLC Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in Liquid Planet Water Park and/or Liquid Planet Holdings LLC and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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