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

SEC Halts $47 Million Investment Fraud at Utah-Based Cash Advance 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 order freezing the assets of two payday that is online companies 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 per cent on the opportunities inside the businesses

– Impact Cash LLC and Influence Payment Systems LLC. Investors had been told their cash is held in split bank reports and utilized to finance loans that are payday other components 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 their own luxurious lifestyle.

Extra Materials

  • SEC Problem
  • Litigation Release No. 21903

“Investors had been guaranteed extraordinary returns while Clark had been really diverting their funds to produce 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 brand new investors through referrals from earlier in the day investors whom thought the Ponzi re re re payments they received had been real comes back on the investments and sought to generally share the profitable opportunity with household and company associates. Read more