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Alaska orders fines against PIPS securities violators


August 18, 2005
Thursday pm

The State of Alaska's Administrator of Securities, Mark Davis, of the Division of Banking and Securities, issued a final order against People In Profit System or "PIPS" (also commonly known as Private Investment Profit System).

The final order issued on August 5th imposes a $75,000 fine against each of the nine respondents names in the original order, which was issued in May. Respondents are, Bryand Marsden, PIPS Inc., PIC Trust Limited, Westoby Works, Team JollyPIPSter,LLC, Gary R. Westoby, Deborah M. Westoby, and Torben Ole Jolnaes.

The original Order determined that PIPS is an unregistered security, which is being offered for sale in violation of the Alaska Securities Act. The Order also finds that the PIPS "2% Plan," where investors are told they will get paid 2% per day on their investment, is a fraudulent investment which is being sold through misrepresentation.

The Order required the principals of PIPS to stop selling this investment until it is registered as a security. Under the terms of the original Order, the respondents had 15 days to request a hearing. No respondent filed a request for hearing and none of the named respondents replied to the original Order.

In April, Attorney General David Marquez issued a warning that PIPS is an illegal Ponzi scheme. A Ponzi scheme is an investment swindle in which high profits are promised from nonexistent sources and early investors are paid off with funds raised from subsequent investors.

PIPS has gained international attention and several state securities administrators have issued orders against PIPS. Securities Administrator Mark Davis urges anyone that has information regarding PIPS or if you were an investor in PIPS to contact the Division of Banking and Securities at (888) 925- 2521 or by email at


Source of News:

Alaska Department of Commerce



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