The following is the text of a news release dated August 13, 2013, by the Arizona Corporation Commission:

“The Arizona Corporation Commission today sanctioned the promoters of a private placement investment in a gold processing operation that defrauded investors out of more than $1.14 million. The Commission cautions investors about promoters who offer and sell risky private placement offerings that are not always suitable for the typical investor.

The Commission ordered Charles L. Robertson of Texas and his two affiliated companies —Arizona Gold Processing, LLC and AZGO, LLC—to pay $1,142,275 in restitution and a $100,000 administrative penalty for committing securities fraud in connection with their private placement offering. The Commission found that,through a private placement memorandum, Robertson and his two affiliated companies made material omissions and multiple misrepresentations to 63 investors who purchased membership interests in Arizona Gold Processing and AZGO.

The Commission found that Robertson, who was one of the principals of Arizona Gold Processing and one of the managing members of AZGO, either contacted or directed others to contact potential investors through nationwide telephone calls and emails. The Commission found that Robertson claimed his companies’ high-tech processing equipment could extract gold and silver ore at microscopic levels beyond what other equipment could extract. The Commission found, however, that there would be no increase in the amount of precious metals extracted with the equipment touted by Robertson and his companies, assuming the assays were performed by reputable labs.  Further, the Commission found that Robertson and his companies failed to inform potential investors about the temporary cease and desist order issued by the Commission’s Securities Division requiring the respondents to stop committing securities fraud in connection with their private placement offering.

In settling this matter, Robertson and his affiliated companies neither admitted nor denied the Commission’s findings, but agreed to the entry of the consent order. The Commission’s final order against the named respondents will be posted online as soon as it is signed by all of the Commissioners. To access the full text of the Commission’s order S-20846A-12-0135, please check the website in a few days: http://www.azcc.gov/divisions/securities/enforcement/enforce.”