ACC Orders $395,000 in Restitution for Defrauded Investors

Phoenix, Ariz. - The Arizona Corporation Commission ordered Don K. Shiroishi of Pasadena, California, to pay $395,000 in restitution and a $15,000 administrative penalty for committing securities fraud.

The Commission found Shiroishi was the co-founder and control person of Pebblekick, Inc. As control person, Shiroishi enlisted a former Arizona registered securities salesman and licensed investment adviser representative, Scott Wayne Reed, to offer and sell short-term, high interest notes in Pebblekick, paying him commissions. In March 2022, the Commission sanctioned Reed for his violations in this matter.

The Commission found Shiroishi failed to disclose to investors four tax liens against the salesman and licensed investment adviser in this matter who was not authorized by his employer to sell the Pebblekick notes. Shiroishi was not registered to offer or sell securities in Arizona.

Shiroishi agreed to the entry of Commission's consent order and admits to the facts and findings only for purposes of this proceeding. 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.