Department of Business Oversight Reaches Settlement with National Residential Mortgage Lender
Sacramento, CA (March 11, 2014) – The Department of Business Oversight has entered into a settlement
agreement with Saxe-Coburg Insurance Solutions, LLC; Michelle Kenen Seward; Dror Soref; and Scott
Walter Foulk (the Defendants). The agreement resolves the Department’s civil action alleging the offer and
sale of unqualified securities in violation of state law. The Defendants did not admit or deny the allegations
in the complaint but agreed to the Court’s entry of a permanent injunction prohibiting future violations of
the law and will repay investors $17.4 million.
“The Department aggressively enforces financial services laws to protect investors and gain restitution for
those who have been wronged,” said Commissioner Jan Lynn Owen. “This settlement is a significant
achievement on behalf of investors.”
The case against the Defendants began in September 2012 with a civil complaint filed in Los Angeles
County Superior Court. The Department alleged in its complaint that the Defendants violated state
corporate securities law by offering and selling more than $23 million in unqualified, non-exempt
securities, including “bridge” loans and promissory notes, to approximately 200 California senior investors
in order to finance a film production. To view public filings related to this matter visit the Department’s
website at: https://dfpi.ca.gov/ENF/List/P/ProtegeFinancialInsuranceServices.asp.
The Department encourages consumers to check the licensing status and enforcement history of a financial
company or professional prior to making an important financial decision. Investors who believe they may
be affected by the settlement should contact the Department of Business Oversight at (866) 275-2677 or
On July 1, 2013, the Department of Corporations and the Department of Financial Institutions merged to become the
Department of Business Oversight. California consumers should contact the Department of Business Oversight to
check on the licensing and standing of the companies, investments or other financial services they are considering at
www.dbo.ca.gov or by calling 1-866-275-2677.
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