Oh boy, just like getting jumped in PvP in RuneScape Lawsuits suck Especially well if you're at risk of losing lots of stuff because you got a skeleton. RuneScape Well I just had to deal with the legal proceeding from the state of California and for the sake of transparency, here's what happened. It goes back to what: I Ran for governor in 2021 I Ran for a governor of California so who could be the next governor of California according to one poll the front runner is 29 year old YouTube influencer Kevin Pafrath what up? Cali what kind of policies you want to see me enact Hit me up in the comments like And subscribe bye, half left And in case you don't already know, California is my home, but it's a home that needs help Help Housing is unaffordable, Schools are dysfunctional, homelessness is a human travesty and it's a big problem in California and some crime just goes straight up unpunished. So guess what? We see more of it anyway.

I ran for governor promising to bring Financial education to schools which I'm shocked we still don't have and there's a lot more since obviously I was running against the existing Democrat Governor though I kind of got a lot of coverage from Republican stations and not a lot from the other side. so I was on things like: Fox News Prime Time Joining me now though Kevin Pafrath he is one of the democratic Challengers to Governor Newsom real estate investor he's a YouTube Star Fox Business which I say yes meet Kevin CNN refused to acknowledge I exist Twitter censored me pre Elon Musk and Instagram and Facebook literally blocked and removed my running announcement Newsome Challenger that's me calls embattled Governor a weenie baby post briefly censored well apparently Fox News reached out to Instagram and Facebook and then all of a sudden the post reappeared. I Also repeatedly got invited to Newsmax so you can kind of see how the media Works Anyway, despite a valiant effort, my campaign didn't succeed. We came in second place of retail recall candidates with nearly 1 million votes.

My Hope Was though that if I failed my ideas and Visions could live on motivating change in California which we actually have seen some of that come up in other people's campaigns for the former mayor in Los Angeles or otherwise, it's pretty exciting. but then I got a letter now I Didn't think this would happen, especially two and a half years late. but again, I believe it's really important to be transparent, both with wins and failures. I guess if you call it this I Suppose As we used to like to say when I was a law enforcement police explorer, we would say the process is the punishment and boy, this was a process.

Anyway, again, for the sake of transparency, here you go in: May of this year I received a letter from a department created by the very Governor I was running against. This department is called the Department of Financial Protection and Innovation. It was created by Gavin Newsom as an attempt to reboot the prior Department of Business oversight and give them some more rules and responsibilities to follow and otherwise. Okay, great.

So what was the letter that I got? So here it is the Commissioner of Financial Protection and Innovation complaintant versus Kevin Paffrath as an individual respondent and as you can see right here, the Commissioner and respondent have entered into a consent order with the following facts and it starts with this fact: Kevin Paffrath is a California Residence They give my license number for being a financial advisor and they talk about these dates specifically here and we'll zoom out and read all of this in a moment. But from at least May 30th, 2021 through June 26 2021 Now these dates are really important because what do those dates perfectly match? They perfectly match my 32 hour Governor live stream and take a look at this one analyzing stocks with meet Kevin Governor Fundraiser look at the date June 26th so see that May 30th through May 31st I was live for 32 hours. That was a challenge we did as part of the campaign Fundraiser 32 hour live stream and many of you came to that. Thank you so much for being there and June 26th analyzing stocks as a Governor fundraiser and what do we end up having in the letter right here? Well, the letter says from at least May 30th matching date to June 26th matching date Paparath per their allegation, provided investment advisory services in the form of Securities analysis and portfolio analysis to at least 10 clients.

During that time, Pafrat did not hold a valid investment advisor license on her. About a year and a half later, Pavrath filed an application for a license to engage in the business of Investment advisor in California Pafrath by entering this consent order neither admits nor denies he violated any California law or regulation now. I Received an original letter from the Department of Financial Protection and Innovation back in May of this year. So this has been going on for four months and it's been a lot of back and forth and it's pretty stressful to deal with this kind of stuff.

The good news is we found out that the focus of their investigation was on these two videos rather than my courses on building Your Wealth House. hack my ETF the actual Financial advice business that we started which is Stackhack.com which by the way I haven't changed the pricing yet this weekend. so if you still want to go to Stackhack.com um, you could join and get licensed Financial advice from us which we're now doing as a team I put together a wealth plan for you and the cool thing is it's totally legal, It's totally above board, it's totally transparent, and it's a great service at a very affordable price. So check that out because we've got a lot of clients already and we are almost at Max Anyway, So the good news is, everything about the investigation seemed to start with these two Governor videos.

And what's really important about that is that the focus of the investigation was these two videos. not about any of my other businesses or my courses on building your author anything like that. It was just these videos is at least what it appeared like. So the problem they allege was that in these videos I was too close to the border of basically providing paid Financial advice because what I said is hey, if you donate to the campaign, I'll look at your stock, you know something like that then just summarizing here at the time, I wasn't licensed I wasn't even thinking about becoming licensed at the time and I did comment on stocks in those videos so that was too blurry and too close to the line for California and I had to make a choice I Could fight the Dfpi in court and spend probably over another year or two years going through investigations over these two silly videos, digging up campaign Finance records and disclosures and documents which are already on record with the state of California.

but you have to kind of pull them all from the Department of Elections and it's all a headache, right? So I could go through all of that fight or I could negotiate. Fortunately, I had some things going for me as you saw last: September I became a licensed financial advisor. The Dfpi actually argued that they were impressed that I had gone through the lengths of becoming a licensed financial advisor, but that I wasn't only licensed that I was also running an actively managed ETF with about 40 million dollars in assets under management still do. They were also impressed that I was going for my Series 7 broker dealer license which is one of the more challenging Securities licenses and I want to make it clear like my goal is always.

hey, what can we do to not only be compliant, but be more than compliant? Like how can we raise the bar on how much we're doing to make sure we're doing everything the way it should be done? Just Thursday at 8am I sat for my series seven and I'm excited to say I passed now I can go on to create meet Kevin hood and I can fight Vlad the Impaler of stocks at his own game. You know of course we want to do everything in a compliant manner. So where do we stand today? Well first let me say this. The folks at the Dfpi were incredibly nice and Cooperative so shout out to the hard-working Folks at the Dfpi honestly like they're great.

They're honest, hard-working people and they're just doing their job I Don't know if this was politically motivated by, you know, like a nudge nudge wink wink from Gavin Newsom Like, go get my competitors, you know it's obvious Gavin Newsom doesn't like me, but I'm just gonna go with the non-cynical approach here and say look, these are folks who are just doing their job We had a great communication, we had great discussions and we realized look, Kevin's going on to doing things highly compliant in a highly regulated world and we have faith he's going to do the right thing. We do have to kind of put something on paper that you know we resolved those two videos with Kevin and the reality is, we could either fight or we could negotiate something and see most individuals and this is something for us all to know. As individuals, Most of us we fear doing things transparently. We fear taking the time to study on Kaplan or whatever it takes to get that new license because oh, now we have to follow potentially more rules.

That's not a bad thing. that's an opportunity because yeah, you have to follow more rules. But guess what? Now you have more opportunities and now folks can say hey, here's my situation. What do you think Kevin and I can actually give them personalized Financial advice.

You know how every time usually people are like oh, this is not personalized Financial Advice: Yeah because In Fairness, they don't know about your situation but now when people come to me and they go hey, you know uh, this is my age, this is my situation. This is how much debt I have. This is what's going on in business. I Could actually go in there and go.

this is as a financial advisor What? I recommend you do and obviously we have insurance and we're like a real business now. So like people think like, oh, it's bad to deal with Regulators But think about what it unlocks. You can actually create a real business. When you're licensed, you become an agent A Lender a contractor.

You can create real businesses now. so you really open up doors. So I'm a big fan of this. Anyway, check out Stackhack.com for more of that.

So what came out of all of this? and how am I dealing with this? Because the reality is, every single business is always going to have hoops and hurdles and speed bumps along the way. And what defines a good business from a bad business is how you deal with it. Are you irrational? Are you rash? Do you make stupid decisions? Do you keep making the same mistake? That would be an example of a bad business? So I'm excited to announce that the Dfpi and I came to an agreement without admitting fault. We agreed to settle the problem of the two.

Governor Live streams for five thousand dollars I've already paid the five thousand dollars I Asked my in-house attorney if they take crypto and they said no. So I ach'd Kind of sucks to have to go back to the 2021 days two and a half years ago and deal with it. but again, I'm happy to say it's over now. I can focus on all of my businesses house hacks, fundraise, stack, hack, my courses on building your wealth I can focus on whatever other businesses we've got going on and I can focus on twins I have coming my family, my children I don't have to deal with this which is good.

You know people ask me what my dream is and let's be clear, it's not a number. it's to do the right thing and be um, you know, modern like JP Morgan or Rockefeller or you know the good parts but instead of banking and oil more like real estate and maybe ETFs right? And there's only one way to do that. to be compliant and to work with people like the FDIC Finra, the SEC you name it I know the law and follow the law. So to me, this is all very motivating.

So I'm going to show you the actual document again so you just so you could see all of it since I only gave you a little Glimpse here. So again, here's the whole document. in case you want to see it, this is the whole document. This is page one right here.

This is where we talk about these those dates which again, those dates line up perfectly with the governor. Live streams. Okay anyway, so uh, we entered into a consent order. no admission of guilt.

Here it is Terms and conditions. It is very simple. Uh, don't do anything that requires a license so like cease and desist from unlicensed investment advisory activities deal I'm licensed now so I can give license Financial Advice: Agrees to pay an administrative penalty of 5K I already paid it Uh, here are you know. Basically, basically you're waiving your additional rights to like go back and sue them and say oh, I want to fight this? Well, it's fine.

It's like let bygones be bygones. There's some other items in here, but I just want you to see like I've actually signed it, It's done, it's over, it's sealed, it's finished. and look. it's stressful.

But you have to look at these things and go. That's business. You know you're going to have issues that come up and sometimes they're old skeletons that roll out of the closet. It's like oh I didn't even realize that was a problem.

That was a year and a half before I even became a licensed financial advisor right now I know uh, exactly what to say and what not to say and now we could be compliant. and I'm excited to say it's over again. It was stressful, It was hard. but I actually think it's a motivating opportunity to everyone.

and I think the big lesson for everyone is to remember that everyone faces challenges and setbacks. My family started broke with nothing. then they started a business and they became successful and lost everything during the.com crash and then my parents divorced and everything went to hell. So right back to nothing but I Personally believe every obstacle that happens in our lives is an opportunity in.

Disguise It's just what we make of them. Do we choose to lie down and get beat up and crawl into a bed and give up? Or do we stand up again and get better? I Choose to stand up and get better every single day? and I hope you do too. Check out Stackhack.com why not advertise these things that you told us here? I Feel like nobody else knows about this? We'll try a little advertising and see how it goes. Congratulations man, you have done so much People Love you people look up to you Kevin Path right there financial analyst and YouTuber meet Kevin Always great to get your take.

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