The Department began an investigation during November 2006. The inquiry focused on several issues including a) the offer and sale of investment interests sold in luxury resorts located in the Dominican Republic, b) the disclosures made to investors in the resort, and c) mortgage loan origination activities.
After lengthy negotiations, EMI Sun Village, Inc., Sun Village Juan Dolio, Inc., and Sun Village Juan Dolio Associates, LLC entered into a settlement agreement with the Idaho Department of Finance on July 19, 2007. James Catledge and Impact, Inc. entered into a separate settlement agreement with the Department on July 19, 2007. In part, the agreements call for the offer of rescission (refunds) to affected Idaho investors.
While the settlement orders called for rescission to be made by December 15, 2007, no such rescission offers were made until late in the first quarter of 2008. Few investors actually received refund payments as expected. The Department’s interest in this matter has not concluded and the Department is considering what further action may be necessary.