O.C. Developer Banned From State Securities

An administrative law judge has banned David Colton, an Orange County developer who was a principal figure in one of Orange County’s costliest real estate scams, from being involved in any securities business in the state. The state Department of Corporations sought the ban after Colton allegedly failed to comply with a court order in 1995 to repay $23 million to investors in the Hill Williams Development Corp., which he helped promote. The operation collapsed in 1993. About 4,000 investors, mostly Southland senior citizens, lost nearly $90 million by investing in the development outfit, which was supposed to use the funds to build affordable housing and promised returns of 15%. Colton, who was not available for comment, has until Sunday to file an appeal against the disciplinary action brought by the state, said Mark Harman, an attorney for the department.