State of Missouri
Office of Secretary of State

Case No. AP-08-01

IN THE MATTER OF:

RCH INVESTMENT GROUP, INC.;
RCH INVESTMENT CORP.; 
RIPPEE CUSTOM HOMES, LLC; 
RANDY ALLEN RIPPEE; and
FRANKEE LEE ALLEN RIPPEE, 

 

Respondents.

Serve RCH Investment Group, Inc. and                
          Randy Allen Rippee at:                                   
                                                                                
            744 Splitrail Pass                                        
            Reeds Spring, Missouri 65737        
                                                                  
With copy to:                                       
                                                                     
            PO Box 9202                                   
            Springfield, Missouri 65809              
                                                                         
Serve RCH Investment Corp. and                     
Randy Allen Rippee at:                                                           
                                                                              
            3672 East Beaumont Drive                         
            Springfield, Missouri 65909                        
                                                                               
Serve RCH Custom Homes, LLC and                   
Randy Allen Rippee at:                                                              
                                                                               
            3672 East Beaumont Drive          
            Springfield, Missouri 65909           
                                                                             
Serve Frankee Lee Allen Rippee at:                      
                                                                                                                           
            2844 West Nichols Drive
            Springfield, Missouri 65737  


FINAL ORDER TO CEASE AND DESIST AND FOR PAYMENT
OF CIVIL PENALTIES AND COSTS

On September 11, 2008, The Enforcement Section of the Securities Division, by and through Mary S. Hosmer, Assistant Commissioner of Securities submitted a Joint Petition for Final Order to Cease and Desist and Payment of Civil Penalties and Costs as to Respondent Frank Rippee, and a Joint Petition for Final Order to Cease and Desist and Payment of Civil Penalties and Costs as to Respondent Randy Rippee (collectively, the “Petitions”).  After reviewing the Petitions, the Commissioner issues the following findings of fact, conclusion of law, and order:

  1. On January 14, 2008, Mary S. Hosmer, Assistant Commissioner for the Securities Division and on behalf of the Enforcement Section, submitted a Petition for Order to Cease and Desist and Order to Show Cause Why Civil Penalties and Costs Should not be Imposed in the above-styled matter.

  2. On January 30, 2008, the Commissioner issued an Order to Cease and Desist and to Show Cause Why Civil Penalties and Costs Should not be Imposed against Respondents.

  3. On February 26, 2008, Respondent Frank Rippee requested a hearing.

  4. On April 25, 2008, Respondent Randy Rippee requested a hearing.

  5. No other Respondent filed a request for a hearing in this matter.

  6. Through their requests for a final order in the Petitions, both Respondent Frank Rippee and Respondent Randy Rippee (collectively, the “Rippees”) have effectively withdrawn their requests for a hearing on the allegations in this matter.

  7. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner issue a Final Order to Cease and Desist as to the Rippees in this matter.

  8. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner bar the Rippees from the securities industry in any capacity for a period of five (5) years.

  9. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner issue an order requiring that each of the Rippees pay one-half of the costs of the investigation in this matter, for a total amount of one thousand one hundred fifty dollars ($1,150).

  10. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner order the Rippees to each pay a civil penalty in the amount of ten thousand dollars ($10,000) for violations of Section 409.3-301, RSMo. (Cum. Supp. 2007), and that the Commissioner suspend nine thousand five hundred dollars ($9,500) of these payments provided that the Rippees comply with the terms of the Order.

  11. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner order Respondents Frank and Randy Rippee to each pay a civil penalty in the amount of ten thousand dollars ($10,000) for violations of Section 409.4-402, RSMo. (Cum. Supp. 2007), and that the Commissioner suspend nine thousand five hundred dollars ($9,500) of these payments provided that the Rippees comply with the terms of the Order.

  12. In the Petitions, the Enforcement Section of the Securities Division and the Rippees requested that the Commissioner order Respondents Frank and Randy Rippee to each pay a civil penalty in the amount of ten thousand dollars ($10,000) for violations of Section 409.5-501, RSMo. (Cum. Supp. 2007) and that the Commissioner suspend nine thousand five hundred dollars ($9,500) of these payments provided that the Rippees comply with the terms of the Order.

ORDER

NOW, THEREFORE, it is hereby ORDERED that:

  1. The Cease and Desist Order entered in Case Number AP-08-01 on January 30, 2008, is FINAL as to all Respondents in this matter.

  2. Respondents Frank Rippee and Randy Rippee are each BARRED from the securities industry in any capacity for a period of five (5) years.

  3. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2007), Respondents Frank Rippee and Randy Rippee shall each pay a civil penalty in the amount of ten thousand dollars ($10,000) to the State of Missouri for multiple violations of Sections 409.3-301, RSMo. (Cum. Supp. 2007), subject to paragraph F, below.

  4. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2007), Respondents Frank Rippee and Randy Rippe shall each pay a civil penalty in the amount of ten thousand dollars ($10,000) for multiple violations of Section 409.4-402, RSMo. (Cum. Supp. 2007), subject to the provisions of paragraph F, below.

  5. Pursuant to Section 409.6-604(d), RSMo. (Cum. Supp. 2007), Respondent Frank Rippee and Randy Rippee shall each pay a civil penalty in the amount of ten thousand dollars ($10,000) for multiple violations of Section 409.5-501, RSMo. (Cum. Supp. 2007), subject to the provisions in paragraph F, below.

  6. Provided that Respondent Frank Rippee and Respondent Randy Rippee comply in full with all terms of this Order, each of the civil penalties described in paragraphs C, D, and E, shall be suspended in the amount of $9,500.  This suspension leaves each of the Rippees subject to an immediate civil penalty of five hundred dollars ($500) on each of three violations.  Respondent Frank Rippee’s and Respondent Randy Rippee’s resulting and unsuspended separate one thousand, five hundred dollar ($1,500.00) civil penalty shall be paid in ten (10) equal monthly installments of one hundred fifty dollars ($150).  The first installment will be due within thirty (30) days of the execution of this Order.  The second installment will be due on December 1, 2008, and all other installments will be due on or before the first of each month with the last installment due on or before August 1, 2009.  All payments shall be made payable to the State of Missouri, and sent to the Securities Division at 600 West Main Street, Jefferson City, Missouri 65101.  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.  If Respondents fail to make any payment described in this Paragraph or in Paragraph G, below, the full amount remaining, together with all suspended amounts, shall be immediately due and payable after five (5) days notice to cure. If any amount remains unpaid after such five-day cure period, the Commissioner will refer this matter for enforcement as provided in Sections 409.6-603 and 409-6-604, RSMo. (Cum. Supp. 2007).

  7. Pursuant to Section 409.6-604(e), RSMo. (Cum. Supp. 2007), Respondents Frank Rippee and Randy Rippee shall each pay the amount of five hundred seventy five dollars ($575), for a total amount of one thousand one hundred fifty dollars ($1,150), as reimbursement for the costs of the investigation and administration of this matter.  These funds shall be made payable to the Investor Education and Protection Fund and shall be sent to the Securities Division at 600 West Main Street, Jefferson City, Missouri 65101 within one hundred and twenty (120) days from the date of this Order.

  8. The payments of Respondents Frank Rippee and Randy Rippee in paragraphs C, D, and E, above, and suspended by paragraph F, above, shall, for five years from the execution of this Order, become immediately payable, under operation of law, upon Respondents failure to comply with the terms of this Order, and such immediately due payments shall be in addition to all other penalties then available under the law.

  9. Pursuant to Section 409.6-604(f), RSMo. (Cum Supp. 2007), this matter shall be referred to the Missouri Attorney General’s Office to collect the fines and costs described in this Order, as necessary.

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

  11. This order constitutes the full and final order on this matter as to all Respondents named in the January 14, 2008 petition for cease and desist order described in paragraph 1, above.

  12. All Respondents shall pay their own costs and attorney’s fees with respect to this matter.

SO ORDERED.

WITNESS MY HAND AND OFFICIAL SEAL OF MY OFFICE AT JEFFERSON CITY, MISSOURI THIS 24TH DAY OF SEPTEMBER, 2008.

ROBIN CARNAHAN
SECRETARY OF STATE

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

 

 

 

 

 

 

 

 

 

 

 

 

CERTIFICATE OF SERVICE

I hereby certify that on this ____ day of September, 2008, copies of the foregoing Final Order in the above styled case was mailed by certified U.S. Mail, postage prepaid, to: 

RCH Investment Group, Inc.                        
744 Splitrail Pass
Reeds Spring, Missouri 65737

With copy to:
PO Box 9202
Springfield, Missouri 65737

Randy Allen Rippee
744 Splitrail Pass
Reeds Spring, Missouri 65737
                                                                                   
With copy to:                                                            
PO Box 9202
Springfield, Missouri 65809

and:

3672 East Beaumont Drive
Springfield, Missouri 65909

RCH Investment Corp.
3672 East Beaumont Drive
Springfield, Missouri 65909

RCH Custom Homes, LLC
3672 East Beaumont Drive
Springfield, Missouri 65909

Frankie Lee Allen Rippee
705 S. Wrenwood
Strafford, Missouri 65757

And hand delivered to:
            Mary Hosmer
            Assistant Commissioner
            Securities Division                                         

                                                                                   

 

Diann L. Wingrath, Specialist