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

Washington, D.C. – 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 offering fraudulence and Ponzi scheme.

The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical yearly comes back of 80 per cent on the opportunities in their businesses – Impact money LLC and Impact Payment Systems LLC. Investors had been told their cash is held in split bank records and utilized to invest in loans that are payday other areas of the firms’ operations. Nevertheless, Clark rather commingled investor funds into an individual pool and utilized them in order to make unauthorized investments, pay fictitious earnings to previous investors, and fund his very own luxurious life style.

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“Investors had been promised returns that are extraordinary Clark ended up being really diverting their cash which will 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 new investors through recommendations from earlier in the day investors whom thought the Ponzi re re payments they received had been real comes back on the investments and sought to generally share the profitable possibility with household and company associates.”

The SEC alleges that along with purchasing numerous costly automobiles and snowmobiles, Clark took investor funds to acquire a property movie movie theater, bronze statues along with other art for himself.

Based on 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 his scheme. Besides word-of-mouth referrals from earlier in the day investors, Clark additionally recruited investors by attending trade events in a variety of states, attending loan that is payday, and spending salespeople to find prospective investors to fulfill with Clark. Continue reading