The state has issued a cease and desist order against a Hilo company that is alleged to be part of a $2.2 million Ponzi scheme.

Hawai'i Commissioner of Securities Tung Chan yesterday issued a preliminary order against WeCorp Inc., Stuart William Jones and Payton Jones Lowe, alleging they sold investment contracts to Hawai'i and Mainland investors as part of what appeared to be a multi-state foreign currency Ponzi scheme.

The state alleges Jones, Lowe and WeCorp had offered or sold the unregistered securities starting in August 2008 and continue to do so. A Ponzi scheme typically involves someone claiming to offer large returns to attract investors and uses money from new investors to pay off earlier ones.

Chan said WeCorp had been offering foreign currency investments over the Internet and that the state has identified so far at least eight Hawai'i investors and seven on the Mainland who had put money with the company. She said more may come forward as the investigation continues.

WeCorp could not be reached for comment. The state also has issued a right to hearing notice to Jones, Lowe and WeCorp.

State records show Jones is the president and Lowe is the vice president of WeCorp, which was incorporated with a Hilo address in December 2007.

The company's WeCorpInc www.Forex.com Web site says the privately managed account "intelligently increases its wealth 24 hours a day" in markets around the world.

"Through our 'Risk Prevention' approach, we can do this without ever losing money," the site says, noting WeCorp has a unique trading platform creating higher than average returns without risk. It says people participating in the approach received unparalleled returns.

Chan alleges that Jones, Lowe and WeCorp violated Hawai'i's securities registration and anti-fraud provisions and is seeking a permanent injunction to prevent future violations. She also has sought restitution and civil penalties of $1 million as her enforcement branch continues to investigate.

The state's securities laws require registration of investments and individuals selling them. The state is asking anyone who did business with Jones, Lowe or WeCorp to contact them at 586-2740.

The state said the Commodity Futures Trading Commission had assisted in its investigation and had filed a separate emergency action in federal court alleging violations of anti-fraud provisions.