SUMMARY

FINRA directed George Foster to the Illinois Secretary of State (ILSOS) to file complaints against the CMG broker-dealer and Shawn Baldwin. FINRA officials told Foster to “keep them posted”. FINRA incorrectly gave Baldwin and CMG the only customer complaint it had in its history from this individual–who was never a client of the broker-dealer. The individual made a customer complaint 3 years after the broker-dealer was closed. FINRA published this on the internet multiple times every year for four years straight. FINRA brought ILSOS because the statute of limitations for bringing proceedings against Baldwin and CMG lapsed. Maria Pavone told Tom Benigno that she was directed to begin these proceedings by FINRA.

Pertinent Points for the Illinois Secretary of State (ILSOS)

A. I was found not guilty of any wrongdoing by the referee–Soula Spryopolous. That was overturned by Maria Pavone and James Nix who then knowingly published incorrect findings. Baldwin was told by Sianis that if Investors settled prior to the proceedings the case would be dropped.

B. Maria Pavone and James Nix were told by the actual investors that they had settled. Pavone and Nix began yelling at the investors and told them that they were continuing the case without them and attempted to block their payments. Stating multiple times that Nix and Pavone’s interest was above the investors.

C. Maria Pavone later contacted the Attorney General and told them that Baldwin owed money to G.G. when she had been notified by the investor and Baldwin that they had settled.

Maria Pavone left all three incorrect versions and ignored the correct financial statements, during this period their expert witness read from a wrong account and on the record had to be shown by Shawn Baldwin that he had the wrong account infuriating James Nix.

James Nix then attempted to convince an investor to wear a wire when asking Baldwin questions.

James Nix then tried to strong arm Baldwin (see the email in attachments) into signing an agreement without presenting any terms, when Baldwin wouldn’t he refused to send the proceeding until too late so that Attorney Nichole Patton’s appeal was denied for being late.

  1. Maria Pavone posts multiple incorrect notices of hearings with many inaccuracies, incorrect entities, even incorrectly spells Baldwin’s name in 2011. Pavone doesn’t contact Baldwin and only brings the hearing after 8 months of constant pressure in combination with forcing a hearing by contacting other political figures. Pavone states that investors purchased securities when documents state that the made loans. Pavone lists that Baldwin is deficit sending monthly statements when none are required. Pavone began the investigation at the behest of FINRA.

 

  1. Investors ‎are paid in 2012 and sign definitive settlements which contradict all of the hearing notices posted by Pavone. Investors notify Pavone and Nix directly via email in 2012. Pavone and Nix respond by calling investors and screaming at them for signing settlements. Baldwin contacts Pavone and Nix along with sending them an email on the settlement and payments. Investors continue to notify Nix and Pavone. Throughout 2012, 2013 and 2014. Baldwin notifies Pavone and Nix during the hearing that investors will be paid, Pavone never tells investors and then sanctions Baldwin for stating that investors were paid when in fact they were.

 

  1. Hearing Officer Spryopolous rules that there wasn’t  any fraud involved.. Pavone rejects the finding despite the evidence and falsely posts that Baldwin owes investors money after being made aware directly by the investors..

 

4.‎ Nix tries to get Baldwin to agree to securities fraud and then reduces the charges to the actual correct entity. Baldwin refuses to agree to securities fraud and sales since documents say that the investors are making loans over 50 times and refer to participants as borrower and lender.

 

5 Pavone then contacts the Attorney General stating Baldwin owes investors even though she knows that investors were paid and signed definitive settlements.

 

  1. ‎Pavone then posts false information stating Baldwin owes investors. In the final Order Pavone incorrectly names the investors amongst many other factually incorrect statements.

 

  1. Baldwin disagrees with the finding but asks multiple times how to comply and is never answered by Nix Pavone or anyone in the ILSOS office on how to comply.

 

ILSOS gave Baldwin a fine of over $100,000.00 and when Baldwin asked everyone how to pay the fine multiple times–no one would give him any informatiion. Baldwin openly copied the Cass Sunstein and various members of the GAO for over 3 years.