The state issued a preliminary order to cease and desist against a Texas-based company accused of defrauding Hawai'i investors in a "prime bank" scheme that netted at least $630,000.

Hawai'i Commissioner of Securities Tung Chan today announced the move against JAIC Retirement Services, Inc. and president and CEO Andrew O. Steger. And she urged consumers to watch for warning signs of potential schemes.

The preliminary order alleges the company and Steger solicited investors in Hawai'i stating that they would place the money in a "top" bank. Investors were promised a 37 percent to 45 percent profit in 370 days.

The defendants are accused of violating the state's securities registration and antifraud provisions. The preliminary order seeks permanent injunctions against future violations, as well as restitution and administrative penalties of $160,000 for each respondent.