The state’s Commissioner of Securities said Monday it has issued a cease-and- desist order for violating securities laws against Sheila Turner-Souza and Burt L. “Coach” Souza, Rich’s Daily Grinds &Bagel Co. and Rich’s Kona Coffee Co. dba Royale Coffee &Bagel Co.

The Souzas made multiple misrepresentations to at least four Oahu residents who invested in their proposed coffee businesses, the order alleges. The four invested a total of $125,000, the Department of Commerce and Consumer Affairs announced Monday.

The Souzas sought investors through Craigslist advertisements and allegedly failed to disclose that the investors’ funds would be used to pay back previous investors and to pay for the Souzas’ personal expenses.

The pair allegedly perpetrated a fraud by failing to disclose material facts to investors and by using deceptive schemes and devices, and failed to register with the DCCA’s Securities Compliance Branch, as is required by state securities laws.

The investments they sold were allegedly unregistered securities.

A 2010 consent order shows Turner-Souza had been previously barred from offering and/or selling securities in Hawaii.

The cease-and-desist order seeks $300,000 in penalties, refunds to investors, cancellation of any contracts investors entered into and a permanent injunction against the Souzas and their affiliated entities soliciting securities in Hawaii.

Anyone with information on the matter is urged to call DCCA’s Securities Enforcement Branch at 586-2740 or 877-HI-SCAMS.