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Washington, D.C., March 28, 2011 вЂ“ The Securities and Exchange Commission today announced so it has acquired a court purchase freezing the assets of two pay day loan organizations and their owner faced with perpetrating a $47 million providing fraudulence and Ponzi scheme.
The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical yearly comes back of 80 per cent to their assets in their businesses вЂ“ Impact Cash LLC and Impact Payment Systems LLC. Investors had been told their cash could be held in split bank records and utilized to invest in loans that are payday other areas of the firmsвЂ™ operations. But, Clark rather commingled investor funds into an individual p l and utilized them which will make unauthorized investments, pay fictitious profits to previous investors, and fund their own lifestyle that is lavish.
- SEC https://paydayloansmichigan.org/ Problem
- Litigation Release No. 21903
вЂњInvestors had been promised extraordinary returns while Clark had been really diverting their funds in order to make such extraordinary personal acquisitions as a totally restored classic 1963 Corvette Stingray,вЂќ said Ken Israel, Director of this SECвЂ™s Salt Lake Regional workplace. вЂњClark recruited new investors through referrals from previous investors whom thought the Ponzi repayments they received had been real comes back on the investments and sought to generally share the opportunity that is lucrative family members and company associates.вЂќ
The SEC alleges that as well as purchasing numerous cars that are expensive snowmobiles, Clark t k investor funds to buy a house movie theater, bronze statues as well as other art for himself.
Based on the SECвЂ™s problem filed in U.S. District Court for the District of Utah, Clark lured at the least 120 investors into their scheme. Besides word-of-mouth referrals from earlier in the day investors, Clark additionally recruited investors by attending trade events in several states, attending loan that is payday, and spending salespeople to find prospective investors to meet up with Clark. [Read more…] about SEC Halts $47 Million Investment Fraud at Utah-Based Cash Advance Businesses