The Arizona Corporation Commission has ordered Don K. Shiroishi, a resident of Pasadena, California, to pay $395,000 in restitution and a $15,000 administrative penalty for securities fraud.
According to the Commission, Shiroishi was the co-founder and control person of Pebblekick, Inc. In this role, he recruited Scott Wayne Reed—who had previously been an Arizona registered securities salesman and licensed investment adviser representative—to offer and sell short-term, high-interest notes issued by Pebblekick. Reed received commissions for these sales. The Commission had previously sanctioned Reed in March 2022 for violations related to this matter.
The investigation found that Shiroishi did not inform investors about four tax liens against Reed. Furthermore, Reed was not authorized by his employer to sell Pebblekick notes, and Shiroishi himself was not registered to offer or sell securities in Arizona.
Shiroishi agreed to the Commission’s consent order and admitted to the facts and findings solely for the purposes of this proceeding. The Commission stated: “All documents relating to this agenda item can be found in the Arizona Corporation Commission’s online docket at https://edocket.azcc.gov and entering docket number S-21132A-20-0370.”
