LYNDEN — State regulators say a Lynden development company preyed on a sense of small-town community to raise millions of dollars in unregistered investments from hundreds of people.
The Department of Financial Institutions this week fined Homestead Northwest and its chief executive, James W
ynstra, $110,000, and announced it was issuing a cease-and-desist letter to the company.
The Bellingham Herald reports that according to DFI, Homestead and its related companies owe 350 investors $65 million.
The state’s investigation concluded that in many cases Homestead promised returns of up to 10 percent in deals that were done with little more than a handshake. No prospectus or disclosure documents were offered.
The Homestead companies were involved in developing real estate, golf courses, waterslides and time shares.
The newspaper said Wynstra, who is a registered attorney, could not be reached for comment.
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