SEC Halts $47 Million Investment Fraud at Utah-Based Cash Advance Organizations

SEC Halts $47 Million Investment Fraud at Utah-Based Cash Advance Organizations

Washington, D.C. – 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 yearly comes back of 80 % on the opportunities in their businesses – Impact money LLC and Impact Payment Systems LLC. Investors had been told their cash will be held in split bank records and utilized to finance pay day loans and other facets of the businesses’ operations. Nonetheless, Clark rather commingled investor funds into an individual pool and utilized them to produce unauthorized investments, pay fictitious earnings to previous investors, and finance his or her own luxurious life style.

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“Investors had been guaranteed returns that are extraordinary Clark had been really diverting their cash to help make such extraordinary personal acquisitions as a totally restored classic 1963 Corvette Stingray,” said Ken Israel, Director of this SEC’s Salt Lake Regional workplace. “Clark recruited brand brand brand new investors through recommendations from previous investors who thought the Ponzi re re re payments they received had been real comes back to their investments and sought to generally share the profitable possibility with family members and company associates.”