State of Missouri
Office of Secretary of State

Case No. AP-06-32

IN THE MATTER OF:

CAOBO COMPANY; and
PAUL HENRY WILLMS;

Respondents.

Serve all at:
2514 Rucker Avenue
Everett, WA 98206-2340

FINAL ORDER TO CEASE AND DESIST AND
ORDER IMPOSING CIVIL PENALTIES AND COSTS

On the 25th day of October 2006, the Enforcement Section of the Securities Division, by and through Mary S. Hosmer, Assistant Commissioner, submitted a Petition for Final Order to Cease and Desist and Payment of Civil Penalties and Costs (the “Petition”).  After reviewing the Petition, the Commissioner issues the following Final Order imposing costs and civil penalty:

  1. On August 29, 2006, the Missouri Commissioner of Securities issued an Order to Cease and Desist AP-06-32.

  2. On September 13, 2006, the Commissioner received a letter from Respondent Willms stating that he did not want a hearing.  The Commissioner has received no other correspondence or communication from the Respondents.

  3. In its Petition the Enforcement Section of the Securities Division requested a Final Order to Cease and Desist as to all Respondents in this matter.

  4. In its Petition the Enforcement Section of the Securities Division requested that Respondents pay, jointly and severally, the costs of investigation in this matter in the amount of one thousand fifty five dollars ($1,055).

  5. In its Petition the Enforcement Section of the Securities Division requested the Commissioner issue an Order requiring that Respondents pay, jointly and severally, a civil penalty in the amount of one thousand dollars ($1,000).

ORDER

NOW, THEREFORE, it is hereby ordered that:

  1. The Cease and Desist Order entered in Case Number AP-06-32 on August 29, 2006, is FINAL as to all Respondents.

  2. Pursuant to Section 409.6-604(d), RSMo., Respondents shall pay, within thirty (30) days from the date of service of this Order, a combined, total sum of one thousand dollars ($1,000) to the State of Missouri as civil penalties for violation of Sections 409.3-301 and 409.5-501(2), RSMo. This amount shall be sent to the Secretary of State and made payable to the State of Missouri, and the Secretary of State shall forward these funds to the state treasury for the benefit of county and township school funds as provided in Article IX, Section 7 of the Constitution of Missouri.  Respondents shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102.

  3. Pursuant to Section 409.6-604(e), RSMo., Respondents shall pay, within thirty (30) days from the date of service of this Order, the additional sum of one thousand fifty five dollars ($1,055) as reimbursement for the costs of the investigation and administration of this matter. This amount shall be sent to the Secretary of State and made payable to the Missouri Secretary of State’s Investor Education and Protection Fund.  Respondents shall deliver this payment to the Securities Division, 600 W. Main Street, PO Box 1276, Jefferson City, Missouri  65102.

  4. Pursuant to Section 409.6-604(f), RSMo., this matter shall be referred to the Missouri Attorney General’s Office to collect the fines and costs described in this Final Order, as necessary.

  5. This Order is in the public interest and is consistent with the purposes intended by the Missouri Securities Act of 2003.

SO ORDERED:

WITNESS MY HAND AND OFFICIAL SEAL OF MY OFFICE AT JEFFERSON CITY, MISSOURI THIS 26 TH DAY OF OCTOBER, 2006.

ROBIN CARNAHAN
SECRETARY OF STATE

(Signed/Sealed)
MATTHEW D. KITZI
COMMISSIONER OF SECURITIES





CERTIFICATE OF SERVICE

I hereby certify that on this 26 th day of October, 2006,  a copy of the foregoing Final Order issued in the above styled case was mailed by certified U.S. Mail, postage prepaid to Respondents at the above listed address.

Beth Perkins
Administrative Aide