Melvin Lee Cline

• Ordering Melvin Lee Cline , a Tennessee resident , and Why Not Entertainment of Scottsdale to pay a $25 , 000 penalty and $112 , 500 in restitution to seven investors for fraudulent securities offerings.

It was alleged that Cline , president of Why Not , created a Confidential Private Offering Memorandum for Why Not , seeking to raise $10 million through the sale of common stock.Although Why Not intended to use the proceeds to invest in other companies , the commission said , no investment ever was made and the company instead spent the money on marketing , salaries and other expenses.

Reach the reporter at craig.harris@arizonarepublic.com or ( 602 ) 444-8995