SALEM, Ohio — The state of Washington has ordered Arlan Galbraith and his company, Pigeon King International, to cease and desist operations there.
Washington’s securities division filed the order March 19 after it determined the company violated the state’s Business Opportunity Fraud Act.
Any company that offers a business opportunity in that state must register with the securities division, and Galbraith or PKI had not registered, according to state records.
Since the order was handed down, Galbraith has requested a hearing with the securities division, according to Martin Cordell, chief of enforcement.
Cordell said that hearing has not been scheduled, but noted 90 percent of the division’s cases are settled before a hearing.
How it works
Pigeon King International, which bills itself as the world’s second-largest pigeon breeder, invited investors and buyers to invest as much as $50,000 to $100,000 or more to buy hundreds of pigeon breeding pairs.
Arlan Galbraith, in turn, contracted with the growers to buy back the offspring. He told them the pigeons would be sold to new investors, and on the marketplace for meat or as pets.
The order said at least one Washington resident had requested information on the pigeon business opportunity from Galbraith, and that he “failed to provide … disclosure documents, financial statements and a reasonable basis on which the revenue projections for the business opportunity were made.”
Earlier in March, Iowa Attorney General Steve Moline wrapped up his investigation into the pigeon business offered by Galbraith.
Moline issued a statement saying his office “did not receive information that eliminated our concern this was a Ponzi scheme” and warned potential investors to look twice before getting involved with the company.