Mariani v. State of WA Dept. of Financial Institutions
Gary and Irene Cline owned real estate in Washington. In order to grow the proceeds of the sale of that real estate and defer taxes, the Clines invested in a Deferred Sales Trust (DST). Michael Mariani and Prestige Management, LLC, helped establish that trust and served as trustees for the account. Following review of the trust, the Department of Financial Institutions determined that the DST and accompanying promissory note were securities that were not properly registered as such and that Mariani and Prestige Management had thus committed fraud on the Clines. The Department similarly determined that Mariani was not registered as a securities broker. The trial court dismissed the fraud charge but affirmed the rest. Mariani appeals. COA # 870726, Thurston County Superior Court # 23-2-01256-34.
