Cease-and-desist order issued for Hot Springs based company

A cease-and-desist order was issued Tuesday against a former Hot Springs-based corporation and its president for allegedly selling unregistered securities, a news release from the Arkansas Securities Department said.

Arkansas Securities Commissioner B. Edmond Waters issued the order against Arkansas Air Waves Inc., which lists its principal place of business as 1500 Central Ave., Suite C, in Hot Springs, and William E. Langston, a resident of Hot Springs and the organizer and president/CEO of Arkansas Air Waves.

The release said Langston allegedly offered and sold shares of stock in AAW to 28 investors between August 2012 and February 2017, including 26 Arkansas residents and two Missouri residents. The investors received stock shares certificate forms.

The release said the order details serious omissions and misstatements of material facts AAW and Langston made at the time of the sale of the securities, including the multitude of risks involved in the business and misuse of investor money to pay for personal expenses by Langston.

The order notes Arkansas Air Waves status as a corporation was revoked by the Arkansas secretary of state on Jan. 1, 2014. The shares have not been registered under the Securities Act of 1933 and are not properly registered or properly exempted under the Acts and Rules of the Arkansas Securities Commissioner.

"Arkansas residents are encouraged to contact the Arkansas Securities Department prior to making any investment in order to find out if the security and the person selling the security are properly registered or exempt from registration with the department," ASD Staff Attorney Scott Freydl said in the release.

The staff of the Arkansas Securities Department is continuing the investigation into the matter.

Local on 01/10/2018

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