STATE AUDITORíS OFFICE TAKES LEGAL ACTION AGAINST BILLINGS BUSINESSMAN FOR ALLEGED FRAUDULENT ACTIVITY
Today the Montana State Auditorís office filed a Notice of Proposed Agency Disciplinary Action and a Temporary Cease and Desist Order against Billings businessman, Patrick Davison. These documents allege Davison committed securities fraud against two Montana families. Davison is charged with convincing these families to take in excess of $1.2 million from investment accounts they owned at UBS/PaineWebber, including an IRA account and giving the money to Davison. Davison then put the money into fake investments he created. One of the fake investments Davison created was a bond supposedly issued by the St. Labre Indian School Trust. Officials at St. Labreís Indian School have confirmed that no such trust exists and they do not issue any bonds.
Davison also allegedly took money from one of these families to invest in a promissory note he personally guaranteed. The family alleges they have yet to see any of the promised return on the note. Davison allegedly has convinced Montanans to invest in companies he owns or controls but that have shown no return on any money invested in, including Davison, LLC, P & N Ventures, or the d/b/a for P & N known as PPV. Davison, LLC and P & N Ventures have never been registered to offer or sell securities in the state of Montana. Further, Davison is not currently registered to sell or offer securities in Montana.
The Securities Department alleges several counts of fraud, unethical and dishonest practices, as well as selling unregistered securities and conducting securities business in Montana while not properly registered to do so. Davison was once registered as a securities salesperson and an investment advisor representative in Montana while employed by UBS/PaineWebberís Billings branch office. The firm and Davison terminated their business relationship in early 2003. The following year UBS/PaineWebber handled several customer complaints lodged against Davison resulting in over $500,000 in restitution being paid by the company. UBS/PaineWebber is aware of the Departmentís allegations and is cooperating with the Department on this matter.
The Montana State Auditorís Office has notified the appropriate criminal justice authorities in this matter.
Montanans who may have been solicited by or may have invested with Patrick Davison are asked to immediately notify the State Auditorís Office by calling toll-free at 1-800-332-6148 or in Helena at 444-2040.