Fashion Garments

The State Corporation Commission ruled that a Northern Virginia company purporting to offer computerized help with fashion choices and one of its backers misrepresented the company’s status to investors, violating state securities law.

The commission fined Fashion Technologies Ventures $125,000 and backer Thomas Trexler $25,000.

Because the company’s principal backer, Rebel Holiday, did not receive a formal notice of some revised allegations, the commission ordered that she have a chance for a formal hearing.

The commission’s ruling, filed last week, said the company’s shares were not registered in Virginia, a process that gives investors basic protection by requiring disclosure of how a company will use investors’ funds and any claims on its finances.

It also ruled that Trexler and Holiday were not registered to sell securities in Virginia, a requirement in state law that means investors can see what experience and training brokers and financial advisers have, as well as any past complaints or financial troubles they may have experienced, such as a judgment and a tax lien against Holiday or four judgments against Trexler that were never disclosed to investors in Fashion Technologies.

The commission ruled that documents about Financial Technologies that were given investors misrepresented the company’s position and the background of its backers.

Fashion Technologies is one of several cases of soured securities deals the Richmond Times-Dispatch reported on last month.

In filings with the commission, Trexler and Holiday denied they violated any securities law. They have not replied to requests for comment about Fashion Technologies, which is not currently incorporated in Virginia.

source:http://www2.timesdispatch.com/rtd/business/investment/article/B-SECU05_20100104-213404/315371/