Nevada not acting against Par Three

Kevin Rademacher

Friday, Aug. 26, 2005 | 10:50 a.m.

Nevada regulators are aware of Las Vegas-based Par Three Financial Inc., which was ordered by the California Department of Corporations to stop soliciting investors in that state.

Charles Moore, head of the Nevada Securities Division, that the division has not taken action against the company. He also declined to say if any Nevada resident had filed complaints against the company.

"I will tell you that I have recently been made aware of the company," Moore said, adding that he knew of the California order and the Securities and Exchange Commission's interest in the company.

Par Three Financial lists its address as 101 Convention Center Drive, Suite 850, in documents on file with the Nevada Secretary of State's office.

The California order against Par Three said it never registered with the California Secretary of State to sell securities in that state.

The order said that investors in Par Three received written agreements for accounts receivables purchases. The order said that the investment would be loaned to "retail payday loan businesses to finance their operations."

Investors were promised returns of 2-3 percent per month, or 24-36 percent in annual returns, the order said.

Par Three investors were offered the opportunity to make higher returns by recruiting additional investors, the order said, adding that investors were notified by letter that the company did not advertise for new investors "because of the success of the referral program."

The order names Melvin Donald Ruth and James Wayne Long as the controlling parties behind the company. Also named in the order are staff members Donna Weldon, "who regularly used the title senior accounts representative," and Sandra Ratajczak.

Calls to the company were greeted by a recorded message telling callers that its was experiencing difficulties.

"To all our financial partners, we have had a temporary problem with our liquid funds," the message said, emphasizing the company's effort to pay "each of our financial partners in full."

"Please give us a few days to complete this goal," the message continued, promising to contact investors by letter outlining the payment plan.

Par Three executives could not be reached for comment.