FOR IMMEDIATE RELEASE: March 18, 2010 CONTACT: Rebecca Wilder (602) 542-0844
Commission Orders Restitution for Over 100 Defrauded Investors,
Sanctions Phony Concert Promoter and Others for Securities Fraud
PHOENIX, AZ—The Arizona Corporation Commission today ordered multiple individuals and their
affiliated companies to pay over $7.39 million in restitution and $425, 000 in administrative penalties for
defrauding more than 100 investors.
The Commission ordered Gilbert residents Douglas Cottle and Kyla Cottle to pay $2, 637, 880 in
restitution and a $150, 000 administrative penalty for fraudulently offering and selling to at least 100
investors unregistered company stock, promissory notes and options. Douglas Cottle was president and
chief executive offer of an Arizona-based software company, Secure Resolutions, Inc., but Cottle and his
company were not registered to offer or sell securities in Arizona. The Commission found that Cottle
solicited investors through presentations at hotels and personal residences of certain investors as well as
newsletters which included requests that existing shareholders in Secure Resolutions, Inc. pass along the
investment opportunity to their friends. Cottle projected above-market returns and touted that his up-andcoming
software company was profitable and would soon go public, but the Commission found that
Cottle made multiple misrepresentations and material omissions about the investment opportunity,
including the fact that his company had incurred federal tax liens and sustained three years of financial
losses. In settling this matter, Douglas and Kyla Cottle neither admitted nor denied the Commission
findings, but agreed to the entry of the consent order.