The World Bikini Sports League, based in Snohomish, Wash., has been fined $25,000 by the Securities Division of the Washington Department of Financial Institutions, accusing the league of selling unregistered securities and misleading investors, oregonlive.com is reporting.The $25,000 in penalties is a fraction of what investors were allegedly swindled out of when they invested in the sports league to feature women playing various sports in provocative bikinis.
Co-founders Patrick Reagan and John "Curt" Shriner projected that their league would generate at least $3 million a month by December 2009, according to the Washington Department of Financial Institutions Securities Division.
The league's plan was to make money by placing online videos of the women and charging subscribers a fee to watch them. Last year, the league reported to have 16 games with 88 flag-footballers in bikinis. But according to the Washington Department of Financial Institutions, the league was never registered to sell securities in the state of Washington.
Reagan and Shriner raised $225,000 from investors by selling ownership units in the league and teams for as much as $30,000 per stake, the state said. Additionally, the league did not disclose to investors that Shriner filed for bankruptcy protection in 2001 and 2005.
In an interview with oregonlive, Reagan denied any wrongdoing, playing the venture off as ''fun'' and less about making money,
"Our whole organization was set up on friends and family members putting money into something that everybody thought was a good idea," Reagan said. "We didn't have a clue we needed to worry about registering this. ... We didn't go out and recruit anybody to put money in this at all."
During their first season, the league reported that 30 players scrimmaged against troops at Fort Lewis, Wash., before the troops went overseas.
But, that might be the only claim to fame the site can hold on to. The state has immediately ordered the men to stop raising money for the league. Reagan also confirmed to oregonlive.com that nobody has been paid and the league is in serve doubt to continue.
"It's in limbo all the way around," Reagan said. "A lot of the players have moved out of the area ... It's hard to tell actually who's still involved."
The company is now known as The World Women's Sports Association, most likely in compliance with a previous order from regulators.
It looks like the XFL would have been a better investment than this league.
The NFL can now breathe easy, there will be no USFL type takeover here.
[Source]
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