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Tennessee *. BECF Bureau of Etnies & Campaien Finance thes Commission Sworn Complaint Tennessee Ethics Commission This form must be used to report alleged violations of any law within the jurisdiction of the Tennessee Bthies Commission, Please read the instructions before completing this form (failure to complete the form properly may result in dismissal of the complaint pursuant to T.C.A. §3-6-203(a)). = IDENTIFYING INFORMATION 1 ice (Hirst and LastName): lisa 6. MeCo Malling Address: an Ene Gre borderce toad Loudon 1.3117 Telephone: E-mail (Favallable): SUS 2Sb- 0414 Ede Mel enbne c. 02 Mai Alleged Violators (Firs and Last Nanie of each Lin the posion oie ofeach eget lator alleged violator) Tennessee State Senator Timothy F. Burchett ‘Mailing address of each alleged violator: 501 PRINCETON COURT, KNOXVILLE, Tennessee 37919 1CTION ‘a short and plain statement nfs). Inthe yoar 2008, white seeing 2 a Tennassee Stato Sonate, Tisthy Burch knoe accopd a ‘yen fo $10,000 em ELECTRONIC MAGNETIC POWER SOLUTIONS, INC an willy i he “rece by fling to rapr itn the state mancnod Satemant of Disclosure of seri e=-8004) fom, In-adden to rot ssoung he noome ands source, he wily hid is raisons wh ELECTRONIG MAGNETIC POWER SOLUTIONS, ING. by fang to Sport ton tha ilo mardated Sttomant of Discosur flees s-2004) ern. During ths Sane yer, Butcet rn Ieaon thal directly ‘lato to ELECTRONIC RAGNETIC POWER SOLUTIONS, INC's nus of pesovotacefhotoaecria, urchet hha a eos rlatoneht te Willam (3) G. Haynos, who nots hie as a boardmombo of | ELECTRONIC MAGNETIC POWER SOLUTIONS, ING, wi cores shown Hayres was the company's ogsered agen ‘each law or rule (providing the specific citation) allegedly violated. 2 |. Fature to report sours of come on Statement of Disclose of Interstar es) Visto of TGA § 2-0-1284) 2 atte a ropr eoatenehp wit sree of near on Staemorof Ds otros for (-0008) 8 atom f TCA 2-10-1282) Eceateet| 56-8003 (Hone 2016) ‘STATEMENT OF FACTS ‘State all facts that constitute each alleged violation. State the dates upon which (or the time period within which) each violation allegedly occurred. Attach additional sheets as needed, signing and numbering each page. WHILE SERVING AS A STATE SENTOR, TM BURCHETT RECEIVED PAYMENT IN THE AMOUNT OF $10,000 FROM ELECTRONIC MAGNETIG| POWER SOLUTIONS, NG. (MPS) DURING THE 2008 TAX YEAR, AS EVIDENCED BY THE ATTACHED 1088 {doc 1), BURCHETT RECENED {THIS PAYMENT AND HEVER AEPORTED IT AS INCOME [NOR DID HE REPORT A POSITION WITH THE COMPANY) AS IS LEGALLY REQUIRED. TOA 210-128(9)(1)§210-1281A}2), ON AN SS-0004 FORW. 68-0008 FORMS FROM THE STATE OF TENNESSEE IN 2008, END 2000 GHOW NO REPORT OF SUC INCOWE OR A POSITION HELD AT ELECTRONIC MAGNETIC POWER SOLUTIONS, ING (80-2). BSA STATE SENATOR. BURCHETT KNEW HEWAS REGUIRED TO FLL OUT THESE FORMS AND DISCLOSE ALL SOURCES OF INVESTWENTS, INCOME AND EPL GYMENT. DURING THIS SAME YEAR, BURGIIETT WAS FINED FOR FAILING TO REPORT DONATIONS FROM POLITICAL ACTION COMMITTEES, OURING THE 2008 LEGISLATIVe SESSION, THE VERY SAME EAR BURCHETT RECEIVED PAYMENT FROM EMPS, BURCHETT HRSELF SPONSORED LEGISLATION THAT DIRECTLY IMPACTS EMPS" INDUSTRY OF PHOTOVOLTAIOSPHOTOELEGTRONICS, THE BIL, SB2600 (dec. 8) "Requires al stafuorly mandated smoke dotzclrs ins after ‘lenuay 12009, o be proto-elocrle devise. "Amends TCA Seoton 37-2412; Tae 8, Chapor 102, Pat Tie 68, Chapa 1 end Tike 68, ‘Ghopeo 120, Patt» FORMER STATE REP. JOE APMSTRONG, FOUND GUILTY OF A FELONY FOR HIDING INCOME FROM THE IRS IWALEGISLATIVE SCHEME INVOLVING CIGARETTE TAX STAMPS, WAS HOUSE SPONSOR OF S92600, MULTIPLE DOCUMENTS DETAIL EuPS WORK IN THE PHOTOVOL TAICSPHOTOELECTRONIGS INDUSTRY, AS WELL AS THE USE OF SUCH TECHNOLOGY IN SMOKE. DETECTORS (does 4.56), ASSOADING TO RECENT MEDIA REPORTS (doe 7), THE FBS CURRENTLY QUESTIONING MULTIPLE SOURCES [ABOUT TIM BURCHETT POTENTIALLY REGARDING: COUNTY CONTRAGTS, TAX EVASION, AND BRIBERY. SOME OF THOSE INVESTIGATIONS ARE SAID TO BE LINKED TO CONTRACTS, MR. WILLIAM (BIL) G. HAYNES NOTES HIMSELF AS AN EMPS “DIRECTOR, IGE PAESIDENT OF BUSINESS DEVELOPMENT, § SHAREHOLDER" (dc ). HAYNES ALSO [NOTES HIMSELF AN EXPERT IN LANOFILUREGYCLING OPERATIONS ON SOCIAL MEDIA. BURCHETT WAS ALSO FORMERLY IN"THIS INOUSTHY HAVING OWNED COMPOST CORPORATION OF AMERICA (CCA) BEFORE BEING FORGED TO CLOSE AFTER MULTIPLE CITATIONS AND STATE OFTICIALS FINDING HIGH LEVELS OF FECAL COLIFORM (A BACTERIA FOUND INHUMAN WASTE) In CCAS MULCH AND BRUSH PILES. THE TWO HAVE A CLOSE LONG-TIME RELATIONSHP. NIKE CROWDER, ALSO LISTED AS AN EMPS CONTACT] ISANOTHER LONG-TIME CONNECTION OF BURCHETT'S. CROWDER IS A BURCHETT APPONTEE TO THE METROPOLITAN PLANNING ‘COMMISSION (doe), BUSCHETT HAS NO FORMAL TRAINING WHATSOEVER IN THE FIELD OF PHOTOVOLTAIGSIPHOTOELECTAONICS, HOWEVER, HE RECEVIVED PAYMENT INTHE AMOUNT OF $10,000 FROM A COMPANY SPECIALZING IN THE FIELD THE SAME EXACT YEAR HE SPONSORED ( FGISLATION RELATING DIRECTLY TO THE FIELD, MANDATING ALL STATE SANCTIONED SMOKE ALARMS USE TECHNOL OGY FIEFLECTING EMPS! MARKET. BURCHETT BROKE THE LAW By REPUSING TO REFORT THE INCOME AND THE POSITION HE HELD WITH ELECTRONIC MAGNETIC POWER SOLUTIONS, NC. EMPS' IRGTORS AND THEI RELATIONSH1® WIT BURCHETT AND THEIR ACTICITY SHOULD BE EXTENSIVELY INVESTIGATED, ESPESCIALLY CONSIDERING THE RECENT MEDIA REPORTS DETALING FBIINQUIRIES INTO BURCHETT, THE PUBLIC WELFARE REQUIFING TT ©8003 (June 2016) SuTORIING DOGTTTION ial doses aioe wera your psvoon Cha are relevant i comp fhould be strc ta hs complain op tan ama carr wean poe RS ets ee at eo nec nrnoxnrs ois Be ERASE SSeS SA GN Saat SS Se SME mars ro BMS Fae SEP meen ne scope moreno ss EHS eS Sce a aise sues eal erage BNA Po CSLSEDMAEKEAATMSAERSOCALED J pHOTO Electric: CELLS" A = eee rascrmnciey eee Re tte ares eae owe eee ree eee Ee asi orem nynecouscnen SII HOS BES Microsc re ce none 72, List all documents and other materials relevant to this complaint that are available to you, but are not currently {in your possession. State the last known location of the document or material. i. These documents 3, Listall documents and oiher materials that are relevant to this complaint but are not available to you. State the last known location of the document or material. |. Obit TB PS. LOGATION- Bact Uk For, EPS hen cr Cc “ARRIDAVIT. ] By my signature below, [atest to the following: + Tronderstand thet, pursuant to T.C.A. §3-6-208, submiting a complain: containing fase information, or submitting « complaint in reckless disregard of the truth or falsity ofthe information contained therein, constitutes ¢ Cass 2 offense ‘which may subject me to civil penalties in an amount up to ten thousand dotlrs ($10,000) and may additionally subject me to lability forthe reasonable costs and atiomey fees of the falsely accused ‘The information contained in this complaint, and any supporting documentation or materials referenced herein or submitted herewith, is true and correct to the best of my knowledge, infoomstion snd belie. 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UB|sep soyo1ep oyoUs Buns/Xe aU} YIM AyiiqHeduICO PopIAcIA SIU. “S|j90 JeJ0s peseq-Lo: ue efUG ]eUoRUEAUCS 40} 21q}Se9} you }e, Bu!wooUt jy “SUOKN}OS sseje:IM 0} [EUONUOALOD LOY SeLOSsEN0E PUP SIOWEJEP OU Jo eBUeL eAjsueye:dwod Ae 1») seanpoejnuew pue suBisep Ayinoag snBuyl Aligna3s SADYY Jo puo pue uoqesqijes oy e1yold seuieyed jo esodsip ajqisuodsa ouy jira Suz20u09 JetUNsUOD exp SeAowes JONpoLd JeWINSUCO AIPUBLJ-O98 SIL seo160]003 “sewiojsno ay) 40) yoRqhed 19y9INb pue S09 8f0f0 ey! oNpoId jJesEAO BUY JO VOISUEPy onjen Jowoysno eseesUl "yonpoud 94} 10 ay) 8) spud}<@ PUB PauINbes eoUEUETUIEU! pue BuIDIAJes Jo sjane] 64) UI SUORONpeL TUEOYIUBJS S9IqeUS |19D, 2044 eoUeUaUIEW 0c 5 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20849 May 17, 2010 G. Nelson Mackey, Jr. Brumberg, Mackey & Wall, P.L.C. 800 Professional Arts Building 30 W. Franklin Road Post Office Box 2470 Roanoke, VA 24010 Re: Denial of No-Action Request Dear Mr. Mackey: In your letter dated December 4, 2008, you request assurance that the staff of the Division of Trading and Markets (“Staff”) would not recommend enforcement action to the Commission under Section 15(a) of the Securities Exchange Act of 1934 (“Exchange ‘Act”) if Brumberg, Mackey & Wall, P.L.C. (“BMW”) provides to Electronic Magnetic Power Solutions, Inc. (“EMPS”) the services described in your letter in exchange for ‘vansaction-based compensation without registering with the Commission as a broker- dealer pursuant to Section 15(b) of the Exchange Act. Section 3(a)(4)(A) of the Exchange Act generally defines the term “broker” as any person engaged in the business of effecting transactions in securities for the account ‘of others.! Section 15(a)(1) of the Exchange Act generally provides that any broker effecting transactions in securities, or inducing or attempting to induce the purchase or sale of securities, must be registered with the Commission parsuant to Section 15(b) of the Exchange Act.” A person's receipt of transaction-based compensation in connection with these activities is a hallmark of broker-dealer activity.’ Accordingly, any person 115 USC. 780(a)4XA). Sea Suenethening the Commission's Requirements Regarding Auditor Independence, Securities Exchange Act Release No. 47265, n.82 (Jan. 28, 2003) ("A person may ‘effect transactions,’ among other ways, by assisting an fsuer fo structure prospective securities transactions, by helping an isser to identify potential purchasers of securities, or by soliciting securities transactions. A person may be ‘engaged inthe business,” among other way, by receiving transacton-related compensation orby holding itself out a a broker-dealer”), = ASUS.C. T8o(aX1).. > See Order Exematin re Bank of New Lane LLC and the Maiden Lane Commercial Mortgage Backed Securities Trust 2008-1 from Broker-Dealer Rexistration, Securities Exchange Act Release No, 61884 (April 9, 2010) (“indeed, the receipt of transaction-based compensation often indicates that such a person is engaged inthe business of effecting transactions in securities.” (niernal citation omited)). See also Letter from Catherine McGuire, Chief Counsel, Division of Market Regulation, to Thomas D. Giachetti, Stark & Stark, regarding Ist Global, Inc, (May 7, 2001) (reiterating the Mr. G. Nelson Mackey, Jr. May 17, 2010 Page 2 of 2 receiving transaction-based compensation in connection with another person’s purchase or sale of securities typically must register as a broker-dealer or be an associated person of a registered broker-dealer. Tn your letter, you state that BMW would enter into an agreement with EMPS to help EMPS raise funds to finance its operations and development. Specifically, BMW ‘would introduce to EMPS individuals and entities who “may have an interest” in providing financing to EMPS through investments in equity or debt instruments of EMPS. In return, EMPS would pay BMW an amount equal to a percentage of the gross amount EMPS raised as a result of BMW’s introductions. ‘The Staff believes that the introduction to EMPS of only those persons with a potential interest in investing in EMPS"s securities implies that BMW anticipates both “pre-screening” potential investors to determine their eligibility to purchase the securities, and “pre-selling” EMPS’s securities to gauge the investors’ interest. Moreover, the Staff believes that the receipt of compensation directly tied to successful investments in EMPS’s securities by investors introduced to EMPS by BMW (ic, transaction-based compensation) would give BMW a “salesman’s stake" in the proposed transactions and would create heightened incentive for BMW to engage in sales efforts. Accordingly, the Staff believes that your proposed activities would require broker-dealer registration Thus, based on the facts and representations set forth in your letter, the Staff is tunable to assure you that it would not recommend enforcement action to the Commission if BMW engages in the activities set forth in your letter without registering as a broker- dealer pursuant to Section 15(b) of the Exchange Act. Sincerely, a Deputy Chief Counsel staffs position that “the receipt of securities commissions or other transaction related sic} compensation is 2 key factor in determining whether a person or an entity i acting as a broker-dealer. Absent an ‘exemption, an entity thal veceives commissions or other transactfon-related compensation in connection ‘with securiies-based activites that fall within the definition of “broker” or ‘dealer’... generally is required to rogister as a broker-dealer.” (internal citations omitted). Law Offices Brumberg, Mackey & Wall, PL.C. ‘Offices in Roanoke and The New River Valley {800 Professional Arte Building 30 W. Feauldlia Road Post Office Box 2470 orn ge ‘G. Nelson Mochey, J. (540) 343-2956 eoeieeit fe December 4, 2008 Securities Exchange Act of 1934 Section 15 Office of Chief Counsel Division of Corporate Finance United States Securities and Exchange Commission 100 F. Street, N.E, Washington, D.C. 20549 Re: Brumberg, Mackey & Wall, P.L.C. Dear Sir or Madam: This letter requests that the staff of the Securities and Exchange Commission (the “Staff”) advise Brumberg, Mackey & Wall, P.L.C. (“BMW”), that the Staff will not recommend any enforcement action under Section 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”) against BMW, if BMW engages in the activities described below and BMW does not register as a broker-dealer under Section 15(a) of the Exchange Act. BMW is a law firm with an office located in Roanoke, Virginia. BMW is engaged principally in the general practice of law. BMW does not engage in the practice of securities law, and nor is it engaged in any activities involving securities. BMW is not as a broker-dealer or investment advisor, and nor does it conduct its activites through a registered broker-dealer. Eiestronie Magnetic Power Solutions, ine, a Tennessee corporation (“EMPS"). is 2 power electronics technology company whose mission is to develop and deliver invenet and converter sources pro the total energy. vesting, lowest lifetime system cost, and value-added energy: management Features. products for photovaltaic and other renewable ener EMPS would engage BMW to assist them in the acquisition of funding for financing to fund the operations and development of EMPS, BMW would be compensated upon ray eanct gale phat ga, os anit tee sede Doc 6 8 vee tan neu arcae ea Pepsad te recerd teat fag: Vegmate e and te fait tor Latpess ok Bopeograptia al sae ey rap Photoluminercent Abhi cd ite being cap eed fobs gk wend in device that cell consists of layers of lsmiconductor materials fabricated to form a junction and electrical contacts. Most photo- optical smoke detectors employ photovoltaic cells. 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AjUO JOU S| KuedioD ey, “BuNSA} peyoefgns %400} exe sjonposd paysiuy fe pu UoNoNpoud 0} eseeja1 e10jeq peyoed BuILUOOU! |I¥ “SUOAN}os ssBjauMA O} [UONLBAUOD LO, salosseooe pur sIO}EIeF seumoejnuew pue subisep Aunoag snBsy(Bat TBO, AMES -SMBIYSPEOT elgg “seuiayeq Jo jesodsip ejaqisuodses ot yjim suiooU0d 19 “‘yawoysno ay} 404 yoeqhed yonpoud oy) Jo OL] oy) spud}xo pue pasinba! eoueUa|WIEW puE BUK oc 5 uNIqeD stares. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, Dc 20549, May 17, 2010 G. Nelson Mackey, Jr. Brumberg, Mackey & Wall, P.L.C. 800 Professional Arts Building 30 W. Franklin Road Post Office Box 2470 Roanoke, VA 24010 Re: Denial of No-Action Request Dear Mr, Mackey: In your letter dated December 4, 2008, you request assurance that the staff of the Division of Trading and Markets (“Staff”) would not recommend enforcement action to the Commission under Section 15(a) of the Sceurities Exchange Act of 1934 (“Exchange Act”) if Brumberg, Mackey & Wall, P-L.C. (“BMW”) provides to Electronic Magnetic Power Solutions, Inc, (“EMPS”) the services described in your letter in exchange for ‘transaction-based compensation without registering with the Commission as a broker- dealer pursuant to Section 15(b) of the Exchange Act. Section 3(a)(4)(A) of the Exchange Act generally defines the term “broker” as any person engaged in the business of effecting transactions in securities for the account of others. Scction 15(a)(1) of the Exchange Act generally provides that any broker effecting transactions in securities, or inducing or attempting to induce the purchase or sale of securities, must be registered with the Commission pursuant to Section 15(b) of the Exchange Act.” A person’s receipt of transaction-based compensation in connection with these activities is a hallmark of broker-dealer activity.’ Accordingly, any person i 15 US.C. 78o(a}(4(A). See Sirensthening the Commission's Requirements Recarding Auditor Independence, Securities Exchange Act Release No. 47265, n.82 (Jan. 28, 2003)(*A person may ‘effect transactions," among other ways, by assisting an issuer to structure prospective securities transactions, by helping an issuer to identify potential purchasers of securities, or by soliciting securities transactions, A. person may be ‘engaged in the business," among other ways, by receiving transaction-related compensation ‘or by holding itself out as a broker-dealer.”). : ISUS.C. 780(@X). : ‘See Order Exempting the Federal Reserve Bank of New York, Maiden Lane LLC and the Maiden ‘Lane Commercial Mortgage Backed Securities Trusi 2008-1 from Broker-Dealer Registration, Securities Exchange Act Release No. 61884 (April 9, 2010) (“Indeed, the receipt of transaction-based compensation ‘often indicates that such a person is engaged in the business of effecting transactions in securities.” (internal citation omitted). Sec also Letter from Catherine McGuire, Chief Counsel, Division of Market Regulation, to Thomas D. Giacheti, Stark & Stark, regarding 1st Global, Inc. (May 7, 2001) (reiterating the Mr. G. Nelson Mackey, Jr. May 17, 2010 Page 2 of 2 receiving transaction-based compensation in connection with another person’s purchase or sale of securities typically must register as a broker-dealer or be an associated person of a registered broker-dealer. In your letter, you state that BMW would enter into an agreement with EMPS to help EMPS raise funds to finance its operations and development. Specifically, BMW ‘would introduce to EMPS individuals and entities who “may have an interest” in providing financing to EMPS through investments in equity or debt instruments of EMPS. In retum, EMPS would pay BMW an amount equal to a percentage of the gross amount EMPS raised as a result of BMW’s introductions. ‘The Staff believes that the introduction to EMPS of only those persons with a potential interest in investing in EMPS's securities implies that BMW anticipates both pre-screening” potential investors to determine their eligibility to purchase the securities, and “pre-selling” EMPS’s securities to gauge the investors’ interest. Moreover, the Staff believes that the receipt of compensation directly tied to successful investments in EMPS’s securities by investors introduced to EMPS by BMW (ic,, transaction-based compensation) would give BMW a “salesman’s stake” in the proposed transactions and would create heightened incentive for BMW to engage in sales efforts. ‘Accordingly, the Staff believes that your proposed activities would require broker-dealer registration ‘Thus, based on the facts and representations set forth in your letter, the Staff is unable to assure you that it would not recommend enforcement action to the Commission if BMW engages in the activities set forth in your letter without registering as a broker- dealer pursuant to Section 15(b) of the Exchange Act. Sincerely, i Deputy Chief Counsel stafP's position that “ihe receipt of securities commissions or other transaction related (sic] compensation is 2 Key factor in determining whether a person or an entity i acting asa broker-dealer. Absent an ‘exemption, an entity that receives commissions or other transaction-telated compensation in connect ‘with securities-based activities that fall within the definition of ‘broker’ or ‘dealer’. generally is equi to register as broker-dealer.” (internal citations omitted). Law Offices Brumberg, Mackey & Wall, P-L.C. Offices in Roanoke and The New River Valley '800 Professional Arts Building 30 W.Franlilin Road Post Office Box 2470 Roanols, Virginia 24010 Telephone Nelson Mastey, (40) 343.2986 (540) 382-8150 ert ast z R00) 3665780 Bet 131 "x (Sa sree ca (540) 343.0907 anssheemmlawsomn December 4, 2008 Securities Exchange Act of 1934 Section 15 Office of Chief Counsel 3 Division of Corporate Finance United States Securities and Exchange Commission 2 100 F. Street, N.E. te ‘Washington, D.C. 20549 Re; Brumberg, Mackey & Wall, P.L.C. Be Dear Sir or Madam: This letter requests that the staff of the Securities and Exchange Commission (the “Staff") advise Brumberg, Mackey & Wall, P.L.C. (“BMW”), that the Staff will not recommend any enforcement action under Section 15(a) of the Securities Exchange Act of 1934 (“Exchange ‘Act”) against BMW, if BMW engages in the activities described below and BMW does not register as a broker-dealer under Section 15(a) of the Exchange Act. BMW is a law firm with an office located in Roanoke, Virginia. BMW is engaged principally in the general practice of law. BMW does not engage in the practice of securities law, and nor is it engaged in any activities involving securities, BMW is not as a broker-dealer or investment advisor, and nor does it conduct its activities through a registered broker-dealer. Electronic Magnetic Power Solutions, ine, @ Tennessee corporation CEMPS", is @ power liver inverter and converter the highest total energy ment features. electronics technology company whose mission is to develop and products for photovoltaic and other renewable exergy sources providin| jowest lifetime system cost, und value-added energy man harvesting EMPS would engage BMW to assist them in the acquisition of funding for financing to fund the operations and development of EMPS, BMW would be compensated upon a daciny reads oP ave eb aioe saterialy fone balan arate born teat eatenals dittces ast cleetnima star sevice Med cone terete dearer i berag capeved to byt Cents te tcnivet see do materiale Petes Toone aE electrical energy. The cell consists of layers of ismiconductor materials fabricated to form a junction and electrical contacts. 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