Wash. state: Development co. owes investors $65M

AP News
Posted: Apr 07, 2011 3:42 PM
Wash. state: Development co. owes investors $65M

Washington state regulators say a development company raised $65 million through unregistered investments often made with little more than a handshake.

The state Department of Financial Institutions this week levied a $110,000 fine on Homestead Northwest and its chief executive, James Wynstra. It says it would issue a cease-and-desist letter to the Lynden company.

The Bellingham Herald reports that the department found Homestead and its related companies took money from 350 investors. Investigators say no prospectus or disclosure documents were offered.

They also say that in many cases, Homestead promised returns of up to 10 percent.

The companies were involved in developing real estate, golf courses, waterslides and time shares.

The newspaper says Wynstra, who is a registered attorney, could not be reached for comment.