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

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

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2011-73

Washington, D.C., March 28, 2011 – The Securities and Exchange Commission today announced 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 annual comes back of 80 per cent on the opportunities inside the businesses

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

Extra Materials

  • SEC Problem
  • Litigation Release No. 21903

“Investors had been guaranteed extraordinary returns while Clark had been really diverting their funds in order to make such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray, ” said Ken Israel, Director for the SEC’s Salt Lake Regional workplace. “Clark recruited brand brand new investors through recommendations from earlier in the day investors whom thought the Ponzi re payments they received had been actual comes back to their investments and sought to generally share the lucrative opportunity with family members and company associates. ”

The SEC alleges that along with purchasing numerous high priced vehicles and snowmobiles, Clark took investor funds to shop for a house movie movie theater, bronze statues along with other art for himself.UTF8[……]

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