Wednesday, November 7, 2007

R.C. Anderson / RC Anderson in 10 News Investigation

RC Anderson uses famous names to convince people he is worth investing in.

His next "business" may involve building a large sports rehabilitation facility called STAR (Sports Training and Rehabilitation).

I would not get involved with him unless you want to risk being scammed.

I recommend watching the videos at the following link provided by 10 News. They provide video coverage of the investigation so you can learn more about RC Anderson as well as familiarize yourself with what he looks like so you will not fall victim to his scams.

Article from: http://www.10news.com/investigations/9780850/detail.html

They said they were sold on the man’s investment scheme based on his ties with a boxing legend.Ken Norton became an instant celebrity in March 1973.His victory over Muhammad Ali in San Diego is still considered one of the greatest boxing upsets of all time.But a San Diego woman and at least three other people said they believe they have been sucker-punched by a man using the former champ to take their money.“Ken Norton Sr. the boxer and Ken Norton Jr. the football player are listed on his correspondence whenever he sends it to investors,” said attorney Cindy Brand.Brand represents four investors who said they were taken for more than $250,000."The next thing I knew, I was writing him one $10,000 check after another," said investor Jaquelin Hellenberg.Another investor, Steve Huss, said, “It was always in about $20,000 increments."“About $45,000 went to R.C. Anderson,” said investor Kathy Nielsen.What did these investors buy into?A video made by R.C. Anderson explained the product as “a unit to alert motorists and pedestrians of an approaching emergency vehicle.”The video shows how Anderson’s Traffic Alert system would alert drivers of oncoming vehicles.“It will actually improve response times and save lives,” Anderson said in the video.The video footage also displayed Ken Norton’s name at the bottom of Anderson’s development team list.However, investors said they believe Anderson is selling nothing more than empty promises.Brand said, “He has no product. He has never sold one.”Anderson’s business plan showed Traffic Alert would bring in more than $123 million in gross receipts by its fifth year. He promised investors would be rich."He promised that money would be raining down,” said Nielsen.10News investigators obtained copies of checks from investors deposited at a Wells Fargo bank in Grossmont.Records showed Anderson had drained the account, buying airline tickets, ski lift tickets and making ATM withdraws at casinos like Barona and in Las Vegas. The records indicated Anderson was running the investors’ corporate account into a deficit thousands of dollars deep.10News investigators caught up with Anderson outside of his South Bay Terraces home and asked him about his investors’ allegations.“They said you’re running a con, that you’ve spend all of the money from the business on personal items. They show money spent at Barona casino, for travel, for ski lift tickets,” 10News investigator Thom Jensen told Anderson.“I’m glad you said that, because when you run your own business, you’re allowed to pay yourself,” replied Anderson.Anderson then proceeded to name-drop."As a matter of fact, I will get Mr. Norton on the line for you. Ken Norton is a very good friend of mine. I will get Mr. Norton on the line as we speak,” Anderson told 10News.When asked about the alleged missing money, Anderson said, "You know where the money went to? They knew the money was to pay off other investors who came on before."Anderson’s use of Norton’s name coaxed one investor out of his life savings of $150,000."The business idea a good idea, but to have people backing it with a name like Ken Norton is a pretty impressive thing, and I thought, 'This has got to work,'” said investor Stephen Huss.10News spoke to Ken Norton, who said this was not the first time he has heard allegations of fraud with Anderson and his Traffic Alert system.Norton is involved with the company, but the San Diego investors believe Anderson is just using Norton’s celebrity status to rip people off.

RC Anderson's Desist and Refrain Order

This legal document is publicly available:
www.corp.ca.gov/enf/info/dr/06pdf/anderson.pdf


DESIST AND REFRAIN ORDER

State of California - Department of Corporations
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
TO: Raymond Charles Anderson Traffic Alert Systems, Inc.
A.K.A. R.C. Anderson Helmet Alert Systems, Inc.
2045 Burton Street, # 53 Elite Custom Cleaners, Inc.
San Diego, CA 92111 2764 Lake Sahara Drive, Suite 111
and Las Vegas, NV 89117
5715 Baltimore Drive, # 154
La Mesa, CA 91942
and
2364 Fulham Way
San Diego, CA 92139
DESIST AND REFRAIN ORDER
(For violations of section 25110 of the Corporations Code)
1. At all relevant times, Traffic Alert Systems, Inc., is and was a Nevada corporation, first
incorporated on November 15, 2002. At all relevant times, Raymond Charles Anderson, also known
as R.C. Anderson (“Anderson”), is and was the President and control person of Traffic Alert Systems,
Inc.
2. At all relevant times, Helmet Alert Systems, Inc., is and was a Nevada corporation, first
incorporated on December 15, 2003. At all relevant times, Anderson is and was the President and
control person of Helmet Alert Systems, Inc.
3. At all relevant times, Elite Custom Cleaners, Inc., is and was an entity of unknown form. At
all relevant times, Anderson is and was the control person of Elite Custom Cleaners, Inc.
4. Beginning in or about May 2005, Anderson, Traffic Alert Systems, Inc. and Helmet Alert
Systems, Inc., offered and sold securities, in the form of shares of common stock, in Traffic Alert
Systems, Inc. and Helmet Alert Systems, Inc.
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DESIST AND REFRAIN ORDER

State of California - Department of Corporations
5. Beginning in or about August 2005, Anderson and Elite Custom Cleaners, Inc. offered and
sold securities, in the form of shares of common stock, in Elite Custom Cleaners, Inc.
6. Through solicitations in the form of in person sales presentations, Anderson, Traffic Alert
Systems, Inc., Helmet Alert Systems, Inc. and Elite Custom Cleaners, Inc., offered and sold securities
to California residents.
7. The purported purpose of the Traffic Alert offering is to raise funds for the development and
implementation of the Traffic Alert concept: a traffic sign which activates at the presence of in route
emergency vehicles in order to alert motorists and pedestrians of an approaching emergency vehicle.
8. The purported purpose of the Helmet Alert offering is to raise funds for the development and
implementation of the Helmet Alert concept: a motorcycle/bicycle helmet with embedded lights for
rider visibility and safety.
9. The purported purpose of the Elite Custom Cleaners offering is to raise funds for the
development and implementation of the Elite Custom Cleaners concept: a combination coffee shop
and dry cleaner.
10. These securities were offered and sold in the State of California in issuer transactions. The
Department of Corporations has not issued a permit or other form of qualification authorizing any
person to offer and sell these securities in this state.
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DESIST AND REFRAIN ORDER

State of California - Department of Corporations
Based upon the foregoing findings, the California Corporations Commissioner is of the opinion
that the shares of common stock in Traffic Alert Systems, Inc., Helmet Alert Systems, Inc., and Elite
Custom Cleaners, Inc. are securities subject to qualification under the California Corporate Securities
Law of 1968 (Corporations Code, section 25000 et seq.) and are being or have been offered and sold
without being qualified in violation of Corporations Code section 25110. Pursuant to section 25532 of
the Corporate Securities Law of 1968, Raymond Charles Anderson, also known as R.C. Anderson,
Traffic Alert Systems, Inc., Helmet Alert Systems, Inc., and Elite Custom Cleaners, Inc. are hereby
ordered to desist and refrain from the further offer or sale in the State of California of securities,
including but not limited to shares of common stock in Traffic Alert Systems, Inc., Helmet Alert
Systems, Inc. and Elite Custom Cleaners, Inc., unless and until qualification has been made under the
law, or unless exempt.
This Order is necessary, in the public interest, for the protection of investors and consistent
with the purposes, policies, and provisions of the Corporate Securities Law of 1968.
Dated: December 28, 2006
Los Angeles, California
PRESTON DuFAUCHARD
California Corporations Commissioner
By: _______________________________
ALAN S. WEINGER
Lead Corporations Counsel