Auditor orders end to land-options sale

The Daily Inter Lake

Montana State Auditor John Morrison has ordered the shutdown of an allegedly illegal scam that has involved investors from Lakeside and across Montana.

Morrison issued a cease-and-desist order against Quadra Pay Land of Nevada, declaring it an illegal pyramid scheme.

According to a release from Morrison's office, the company promoted real-estate options for sale in Montana.

Morrison's order covers Quadra Pay Land and four partners, Edith and Michael Eavenson, and Charles and William Kuhn.

They allegedly offered sales in Montana of $600 options on 1 square foot of land on the Kentucky-Tennessee border.

The options were to be worth $2,400 upon maturity.

The company also allegedly provided incentives to recruit others into the program. Quadra Pay reportedly promised that investors' options would mature more quickly if they recruited others to buy in.

Morrison called the real-estate options a violation of the Montana Securities Act. The company did not register the investment offering as required, he said.

"Before making any investment, Montanans are urged to check with the State Auditor's Office to confirm that both the broker and product are properly registered in the state of Montana. The allure of easy money sometimes gets in the way of good research and a little common sense, but this one small step could save you a big headache in the end," Morrison said.

There is a penalty of as much as $10,000 per violation for breaking Montana's law against pyramid schemes. That can include people who recruit others to participate.

Anyone with information about the company should call the State Auditor's Office at 1-800-332-6148.