Online Bad Credit Az / 13.09.2020

SEC Halts $47 Million Investment Fraud at Utah-Based Pay Day Loan Companies

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2011-73

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 pay day loan organizations and their owner faced with perpetrating a $47 million providing fraud and Ponzi scheme.

The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical yearly comes back of 80 % on the opportunities in the businesses

– Influence Cash LLC and Influence Payment Systems LLC. Investors had been told their cash will be held in split bank reports and used to finance loans that are payday other areas of the firms’ operations. Nonetheless, Clark alternatively commingled investor funds into just one pool and utilized them to help make unauthorized investments, pay fictitious earnings to previous investors, and fund his very own lifestyle that is lavish.

Extra Materials

  • SEC Issue
  • Litigation Release No. 21903

“Investors had been guaranteed returns that are extraordinary Clark ended up being really diverting their cash to help make such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray, ” said Ken Israel, Director regarding the SEC’s Salt Lake Regional Office. “Clark recruited brand brand new investors through recommendations from previous investors whom thought the Ponzi re re payments they received had been real returns on the investments and sought to generally share the profitable possibility with household and business associates. ”

The SEC alleges that along with purchasing numerous cars that are expensive snowmobiles, Clark stole investor funds to acquire a house movie movie movie theater, bronze statues as well as other art for himself.

Based on the SEC’s problem filed in U.S. District Court for the District of Utah, Clark lured at the very least 120 investors into their scheme.