Precedent Decisions

As authorized by Government Code § 11425.60, the Department of Corporations designated six administrative decisions as precedent decisions. To view and print the decisions, connect to Adobe’s website and complete "ALL" download steps.  This is a one-time setup. After completion of setup, you will have the ability to view and print ANY PDF file. You can download the PDF document to your system to view, or you can view the document on-line.

  1. Respondent(s): L.B. "Lorry" Fredericks; L.B. Fredericks Escrow
    • Dept. file number: ALPHA
    • OAH file number: L-22889
    • Law(s) involved: Financial Code §§ 17006(a)(4),17416
    • Date of Proposed Decision: March 4, 1981
    • Date of Decision: March 9, 1981
    • Designated in whole or in part: In Whole
    • Summary: Cease & Desist order issued under Financial Code § 17416 upheld, despite FC § 17006(a)(4) (real estate broker's exemption), for operator of "escrow divisions" for contracting brokers.
  2. Respondent(s): National School Reporting Services, Inc.; Neil Rosen*
    • Dept. file number: ALPHA
    • OAH file number: L-9611021
    • Law(s) involved: Corporations Code §§ 31005, 31110, 31402
    • Date of Proposed Decision: April 15, 1997
    • Date of Decision: July 24, 1997* No formal decision was adopted.   The decision became effective pursuant to Government Code § 11517(c)
    • Designated in whole or in part: In Whole
    • Summary: Desist & Refrain Order issued under Corporations Code § 31402 upheld; provides precedent re existence of a "marketing plan".
  3. Respondent(s): First Financial, Inc.
    • Dept. file number: 607-1163
    • OAH file number: N-1997120014
    • Law(s) involved: Financial Code §§ 22109, 22270, 22714
    • Date of Proposed Decision: July 23, 1998
    • Date of Decision: July 27, 1998
    • Designated in whole or in part: In Whole
    • Summary: Preponderance of the evidence sufficient to justify revocation,pursuant to Financial Code § 22714(a)(3), of License issued under California Finance Lenders Law where president of Licensee had falsely represented, on application form, that he had never received an administrative order and where he had refused to provide the Department’s examiners with access to Licensee records.
  4. Respondent(s): Internet & Web Services Corporation; Bryan Hertz; Robert Hertz
    • Dept. file number: ALPHA
    • OAH file number: L-1998060195
    • Law(s) involved: Corporations Code §§ 25019, 25110, 25532
    • Date of Proposed Decision: September 16, 1998
    • Date of Decision: September 28, 1998
    • Designated in whole or in part: In Whole
    • Summary: Desist & Refrain order issued under Corporations Code § 25532 upheld based on finding that a "contract for website stores" was an "investment contract" under "traditional" analysis; expands concept of reliance upon efforts of others.
  5. Respondent(s): FairShare, Inc., aka FairShare Capital Markets; Karl M. Sjogren and John G. Wilson
    • Dept. file number: ALPHA
    • OAH file number: N-1998110288
    • Law(s) involved: Corporations Code §§ 25019, 25110, 25532
    • Date of Proposed Decision: January 14, 1999
    • Date of Decision: January 26, 1999
    • Designated in whole or in part: In Whole
    • Summary: Desist & Refrain order issued under Corporations Code § 25532 upheld based on finding that "membership interests" in "internet-based" organization were "investment contract" securities under both "traditional" and "risk capital" analyses.
  6. Respondent(s): Stacy Ann Maspero
    • Dept. file number: LIT 02-48
    • OAH file number: L-2002090534
    • Law(s) involved: Financial Code §§ 17423; 17414.1; 17702
    • Date of Proposed Decision: December 16, 2002
    • Date of Decision: January 13, 2003
    • Designated in whole or in part: In Whole
    • Summary: Order to bar from any position of employment, management or control of any escrow agent pursuant to California Financial Code section 17423 of the Escrow Law.
  7. Respondent(s): American Equity Investment Life Insurance Company; Gloria Marguerite Walton; Michael Paul McIntyre
    • Dept. file number: LIT 05-11
    • OAH file number: N2004080527
    • Law(s) involved: Corporations Code §§ 25009 and 25230
    • Date of Proposed Decision: November 12, 2004
    • Date of Decision: December 14, 2004
    • Designated in whole or in part: In Whole
    • Summary: Order to desist and refrain from inducing a customer to sell securities in order to purchase an annuity fund and acting as an investment adviser without possessing a certificate from the Corporations Commissioner.
  8. Respondent(s): Nadia Haddad dba Cash It Quick
    • Dept. file number: LIT 05-37
    • OAH file number: L-2005060355
    • Law(s) involved: Financial Code §§ 23005(a) and 23050
    • Date of Proposed Decision: July 25, 2005
    • Date of Decision: August 25, 2005
    • Designated in whole or in part: In Whole
    • Summary: Desist and refrain from advertising for a deferred deposit originator, referring customers to a deferred deposit originator, and processing payday loan applications on behalf of a deferred deposit originator without first obtaining a License from the Corporations Commissioner.

Government Code § 11425.60 is as follows:

  1. A decision may not be expressly relied on as precedent unless it is designated as a precedent decision by the agency. (b) An agency may designate as a precedent decision a decision or part of a decision that contains a significant legal or policy determination of general application that is likely to recur. Designation of a decision or part of a decision as a precedent decision is not rulemaking and need not be done under Chapter 3.5 (commencing with Section 11340). An agency's designation of a decision or part of a decision, or failure to designate a decision or part of a decision, as a precedent decision is not subject to judicial review.
  2. An agency shall maintain an index of significant legal and policy determinations made in precedent decisions. The index shall be updated not less frequently than annually, unless no precedent decision has been designated since the last preceding update. The index shall be made available to the public by subscription, and its availability shall be publicized annually in the California Regulatory Notice Register.
  3. This section applies to decisions issued on or after July 1, 1997. Nothing in this section precludes an agency from designating and indexing as a precedent decision a decision issued before July 1, 1997.