A Lake Havasu City accounting firm must pay $3.3 million for fraudulently selling unregistered securities, according to an announcement by the Arizona Corporation Commission.

The ACC said in a news release that Havasu-based Lance Michael Bersch and the laste David John Wanzek and their affiliated company, ER Financial & Advisory Services, must pay $2.6 million in restitution and $816,000 in administrative penalties for fraudulently selling unregistered securities and registration violations.

Also, the Corporation Commission ordered Concordia Financing Company, Ltd. of California to jointly pay $2.6 million restitution and a $700,000 administrative penalty for its securities registration violations. The Corporation Commission found that Bersch and Wanzek fraudulently sold unregistered investment contracts in Concordia, which was in the business of purchasing and servicing subprime loans to truck drivers who purchased used, big rig trucks.

The Corporation Commission found that Bersch, Wanzek and ER Financial were not registered to sell securities in Arizona, and they failed to disclose to several investors the finders’ fees Concordia paid them for selling the investments.

The Corporation Commission found Concordia did nothing to determine if an investor had the financial wherewithal to make an investment, and it failed to use questionnaires or other materials to determine whether investors were accredited investors.

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