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

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

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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 payday that is online 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 % to their opportunities 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 utilized to invest in loans that are payday other components of the firms’ operations. Nonetheless, Clark rather commingled investor funds into just one pool and utilized them to create unauthorized investments, pay fictitious earnings to previous investors, and finance his very own luxurious life style.

Extra Materials

  • SEC Issue
  • Litigation Release No. 21903

“Investors had been guaranteed extraordinary returns while Clark had been really diverting their funds to help make such extraordinary personal acquisitions as a totally restored classic 1963 Corvette Stingray, ” said Ken Israel, Director associated with the SEC’s Salt Lake Regional workplace. “Clark recruited new investors through recommendations from previous investors who thought the Ponzi re re payments they received had been real returns to their investments and sought to generally share the opportunity that is lucrative household and company associates. ”

The SEC alleges that as well as purchasing numerous costly cars and snowmobiles, Clark stole investor funds to shop for a property movie theater, bronze statues along with other art for himself.

In line with the SEC’s problem filed in U.S. District Court when it comes to District of Utah, Clark lured at the very least 120 investors into their scheme.