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CHICAGO – Carol Myers, long-time friend and business associate of Donald Boroian, founder and CEO of Francorp Inc., a development firm of franchisors, cut a $5,000 deal with Illinois Securities Division for selling unregistered securities.
Myers was caught soliciting thousands of Illinois investors to buy into “membership shares” in The Healthy Life Style Place, a program under Physicians Wellcare Centers of America and Fran Span Global LLC. She began her program in 2010, making cold calls to investors using purchased lists from the American Medical Association database of physicians in Illinois. Myers’ activity in offering and selling the memberships without registering with the Secretary of State resulted in charges of violating securities law.
In the lawsuit brought by the State of Illinois, Secretary of State Securities Department, Myers and her companies were represented by Francorp’s general counsel Chris Galloway.
Myers long history with Boroian
Myers has had a relationship with Boroian and Francorp in various business transactions for the past four decades. She owned the Pop-In Maid Service franchise in 1978, in which Francorp assisted her in developing the concept and providing franchise disclosure documents. Approximately seven years after the company was launched, it ended in bankruptcy.
Another Francorp venture started in 2003 when Myers again approached Boroian about preparing a business plan for her venture on the South Beach Wellness concept. It was established to offer master franchises, which were granted exclusive territorial rights to sell products related to health, nutrition, skin care, anti-aging, and lifestyle. Although Francorp prepared the disclosure documents for that company, it was never registered. A Miami jury ruled in favor of the five franchisees on all nine counts against Francorp and Boroian, including fraud, conspiracy and deceptive trade practices. The judge awarded them $403,834.
Judgment against respondents reduced
Illinois Secretary of State Jesse White issued his order in the case on December 21, 2011. Carol Myers, also known as Chris Morgan, agreed to permanently stop selling securities in Illinois, and pay an administrative fee of $5,000. All other proceedings were dismissed. If Myers had been convicted, she would have faced a class 4 flony punishable by severe fines and/or potential jail.
A source close to the case said originally the State of Illinois was asking for a $100,000 judgment. Counsel to Myers asked on several occasions that it be reduced to the $5,000 fee.