Investor alert: Health Maintenance Centers, Inc.; Znetix, Inc.; and Kevin L. Lawrence
February 7, 2002
The Oregon Division of Finance and Corporate Securities is investigating Health Maintenance Centers, Inc., Znetix, Inc., and Kevin L. Lawrence, of Bainbridge Island, Washington, for possible violations of the Oregon Securities Law. The case involves health and fitness companies that allegedly raised more than $74 million from an estimated 5,000 investors across the country, including approximately 300 Oregon investors.
The Washington Department of Financial Institutions, Securities Division, issued a cease and desist order in a similar case against Kevin L. Lawrence, Health Maintenance Centers, Inc., and their employees and agents, on Apr. 9, 2001. The Washington Securities Division's order (.pdf version) can be accessed on the Internet.
The United States Securities and Exchange Commission filed a lawsuit in federal court in a similar case against Health Maintenance Centers, Inc.; Bainbridge Human Performance Centers, PLLC; Znetix, Inc.; Cascade Pointe of Arizona, LLC; Cascade Pointe of Nevis, LLC; Kevin L. Lawrence; Donovan C. Claflin; Clifford G. Baird; Kimberly Alexander; Bonnie M. Couch; Stacy Gray; and Vicki L. Lawrence, on Jan. 23, 2002. According to the SEC's complaint, the case involves an ongoing and fraudulent offer and sale of unregistered securities, and defendants Lawrence and Claflin knowingly and intentionally misappropriated more than $16 million of investor funds. The SEC obtained an injunction and an order freezing the assets of the defendants. Information about the SEC action can be accessed on the Internet.
If you are an Oregon resident and would like to file a complaint with the Oregon Division of Finance and Corporate Securities concerning Health Maintenance Centers, Inc., Znetix, Inc., and Kevin L. Lawrence, please complete the Oregon securities questionnaire (.pdf version) regarding Health Maintenance Centers, Inc. and send it to: