The Utah Division of Securities said Wednesday that it has ordered several film production companies to stop raising funds in Utah for a documentary series.
The division, a branch of the state Department of Commerce, issued an emergency cease and desist order against several parties telemarketing limited liability partnerships for the production of the documentary.According to the division, the partnerships are investment contracts and are required to be registered as securities before being offered for sale.
The order was issued against Quest Productions Inc., Tri Star Capital Management Group Inc., Jim Burroughs, Bradley Ferguson and D.J. Shepard of Ventura, Calif.; and the Colorado-based Quest II Production Partners, L.L.P.
The division says that none of the entities were licensed to sell securities in Utah and contends that potential investors were provided with inaccurate and incomplete information.
The division said promoters were trying to raise $4 million by selling 800 partnerships at $5,000 each to finance a documentary series titled "Quest II: The Origins of Modern Beliefs." Once completed, the broadcast rights would be sold to one or more television stations.
Potential investors were told the investment would produce returns of 200 to 250 percent in three years and was low-risk, according to the division.