Colorado sanctions Pieces Magazine publisher

AP News
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Posted: Jan 04, 2012 10:28 AM
Colorado sanctions Pieces Magazine publisher

Colorado's securities commissioner has entered a final cease-and-desist order against a publishing company and its owner accused of violating state securities laws.

The Colorado Division of Securities said Tuesday that Katana Financial Group LLC and Adam Dennis Paplow of Littleton had agreed to the order prohibiting them from illegally offering or selling securities in Colorado.

The division alleges violations happened as Katana and Paplow tried to raise money for their magazine, "Pieces Magazine Denver."

They say Katana and Paplow posted an online ad promising investors up to a 21 percent return on investments in a six- to 12-month term. Katana and Paplow were accused of failing to register the security offering and failing to tell potential investors about bankruptcy filings by Paplow in 2002 and 2008, among other alleged violations.