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Washington, D.C., March 28, 2011 – The Securities and Exchange Commission today announced so it has acquired a court purchase freezing the assets of two payday that is online 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 returns of 80 per cent on the investments inside the organizations
– Influence Cash LLC and Influence Payment Systems LLC. Investors had been told their funds could be held in split bank records and used to finance pay day loans and other facets of the businesses’ operations. But, Clark rather commingled investor funds into an individual pool and utilized them which will make unauthorized investments, pay fictitious earnings to previous investors, and fund his very own luxurious life style.
Extra Materials
- SEC Problem
- Litigation Release No. 21903
“Investors were promised returns that are extraordinary Clark had been really diverting their cash to help make such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray, ” said Ken Israel, Director associated with the SEC’s Salt Lake Regional workplace. “Clark recruited brand brand new investors through recommendations from previous investors whom thought the Ponzi re payments they received had been real comes back to their investments and sought to generally share the lucrative possibility with household and company associates. ”
The SEC alleges that along with purchasing numerous high priced automobiles and snowmobiles, Clark took investor funds to shop for a house movie theater, bronze statues as well as other art for himself. Continue reading “SEC Halts $47 Million Investment Fraud at Utah-Based Pay Day Loan Businesses”