About

Important information

• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  State of Alaska v James Francis Dainis; Societe Financial LLC, an Alaska limited liability corporation ; Societe Financial Group LLC, an Alaska limited liability corporation; Commercial ATM Services of Alaska LLC, an Alaska limited liability corporation; Commercial ATM Services, LLC, an Alaska limited liability corporation; LGD Enterprises LLC, a Washington limited liability corporation; LGD Enterprises, LLC, a Wyoming limited liability company
  

   

  The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

   

  On August 16, 2023, in the Superior Court for the State of Alaska Third Judicial District at Anchorage, Alaska Attorney General Treg Taylor on behalf of the State of Alaska filed a lawsuit against James Francis Dainis; Societe Financial LLC, an Alaska limited liability corporation ; Societe Financial Group LLC, an Alaska limited liability corporation; Commercial ATM Services of Alaska LLC, an Alaska limited liability corporation; Commercial ATM Services, LLC, an Alaska limited liability corporation; LGD Enterprises LLC, a Washington limited liability corporation; LGD Enterprises, LLC, a Wyoming limited liability company, alleging that they engaged in widespread fraud in the ATM industry.
  
  

  According to the complaint, Dainis sells ATMs to small business, non-profits, and ANCSA corporations, and provides related services, including connecting the machines into the financial system. In many cases, Dainis’ ATM-owner clients fill their machines with cash. In return, the ATM-owner should receive a transfer of funds equal to the amount withdrawn (a “cash settlement”), plus the ATM-owner’s share of any surcharges that ATM users pay when they withdraw money (a “surcharge settlement”). But since at least 2013, Dainis has repeatedly stolen both cash settlements and surcharge settlements.
  
  

  The complaint states that a full accounting of Dainis’ fraudulent scheme is not complete, but that some victims suffered tens or hundreds of thousands of dollars in losses, and that Dainis likely stole millions dollars of cash and surcharge settlements from his ATM-owner clients.
  
  

  According to the complaint, since 2017, at least fourteen of Dainis’ ATM-owner clients have filed suit against him.
  
  

  The Department of Law is asking any ATM owners who believe they may have been defrauded by Dainis to send an email to [email protected] or to call (907) 269-5200.
  
  

  In addition to defrauding his ATM-owner clients, Dainis is also alleged to have defrauded four companies that he sold business interests to. In one instance described in the complaint, Dainis sold his supposedly exclusive contractual right to provide processing services for 307 ATM terminals owned by his ATM-owner clients to Know-Tone Incorporated for $1,080,000. But Dainis did not have any such contractual rights, and in any event, he refused to transition his business to Know-Tone.
  
  

  The complaint goes on to say that after defrauding Know-Tone, Dainis entered into contracts with three separate companies promising to provide a percentage of his future revenue in exchange for immediate cash. The contracts with EBF Partners, LLC, Fox Capital Group, LLC, and Pearl Delta Funding, LLC (“the receivables financing companies”) provided Dainis with over $1 million in cash. But after a short time Dainis stopped allowing the receivables financing companies access to his revenues.
  
  

  The complaint states that more than $1 million in court judgments against Dainis remain unpaid, and that Dainis is still facing several lawsuits and potential future lawsuits. According to the complaint, in order to hide assets from creditors, Dainis created two shell companies, LGD Enterprises, LLC (a Wyoming corporation) and LGD Enterprises LLC (a Washington corporation), which he used to purchase real estate. The complaint also alleges that Dainis has moved money out of the United States.
  
  

  Dainis has created numerous corporations, obtained numerous business licenses, and registered numerous business names, including:
  
  

   

  Alaska
  
  Societe Financial LLC – 99577 (Previously “Sociate Financial Group Limited Liability Company”), which obtained the following licenses and name registrations:
  
  Societe Financial LLC – 733635 (Business License)
  
  Alaska ATM Service – 909561 (Business License)
  
  Cajeros Automaticos de Mexico – 1063576 (Business License)
  
  Cajeros Automaticos de Mexico – 995269 (Business License)
  
  Commercial ATM Services – 984179 (Business License)
  
  Northwest ATM Services – 937535 (Business License)
  
  Outpost ATM Services – 1063577 (Business License)
  
  Alaska ATM – 117956 (Business Name Registration)
  
  Alaska ATM Sales – 121129 (Business Name Registration)
  
  Alaska ATM Sales and Service – 121130 (Business Name Registration)
  
  Alaska ATM Service – 103462 (Business Name Registration)
  
  Alaska ATM Service – 10018067 (Business Name Registration)
  
  Alaska ATM Service – 10122712 (Name Reservation)
  
  Alaska ATM Service – 10199405 (Business Name Registration)
  
  Alaska Teller Machine – 99578 (Business Name Registration)
  
  ATM Network – 133079 (Business Name Registration)
  
  Outpost ATM – 117957 (Business Name Registration)
  
  Outpost ATM Service – 118094 (Business Name Registration)
  
  Outpost ATM Services – 117955 (Business Name Registration)
  
  Societe Financial Group LLC – 10018053, which obtained the following licenses:
  
  Societe Financial Group LLC – 999879 (Business License)
  
  Outpost ATM Services – 999935 (Business License)
  
  Commercial ATM Services, LLC – 10018066, which obtained the following licenses:
  
  Commercial ATM Services, LLC – 999900 (Business License)
  
  Commercial ATM Services LLC – 1006409 (Business License)
  
  Commercial ATM Services LLC – 2084860 (Business License)
  
  Advanced ATM Systems – 2098254 (Business License)
  
  Advanced ATM Systems – 1006410 (Business License)
  
  Commercial ATM Services of Alaska LLC – 10025928, which obtained the following license:
  
  Commercial ATM Services of Alaska LLC – 1014586 (Business License)
  
  

   

  Oregon
  
  Commercial ATM Services, LLC – 1617127-90, which obtained the following license:
  
  Northwest ATM – 774100-91 (Business License)
  
  Washington
  
  Commercial ATM Services LLC – 604-781-788
  
  Northwest Bank Equipment LLC – 604-938-311
  
  Northwest Bank Equipment, LLC – 604-694-214
  
  LGD Enterprises LLC – 604-941-231

   

  Wyoming
  
  LGD Enterprises, LLC – 2019-000866632
  
  Arizona
  
  Societe Financial LLC – R19152037 (Foreign LLC Registration)
  
  Societe Financial Group LLC – R19279344 (Foreign LLC Registration)
  
  Commercial ATM Services, LLC – R19279388 (Foreign LLC Registration)

   

  Mississippi
  
  Commercial ATM Services, LLC – 1179695 (Foreign LLC Registration)
  
  

   

  Missouri
  
  Commercial ATM Services, LLC – 1179695 (Foreign LLC Registration)

   

  For more information, please contact the Alaska Department of Law at Phone: 907-269-5100 or https://law.alaska.gov/.

  Click here for details