Washington, D.C. вЂ“ The Securities and Exchange Commission today announced so it has acquired a court purchase freezing the assets of two pay day loan 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 per cent to their assets in their businesses вЂ“ Impact money LLC and Impact Payment Systems LLC. Investors had been told their cash will be held in split bank reports and utilized to invest in loans that are payday other areas of the businessesвЂ™ operations. Nevertheless, Clark rather commingled investor funds into an individual pool and utilized them which will make unauthorized investments, pay fictitious earnings to previous investors, and fund his very own luxurious life style.
вЂњInvestors had been guaranteed returns that are extraordinary Clark had been really diverting their funds payday loans online in order to make such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray,вЂќ said Ken Israel, Director of this SECвЂ™s Salt Lake Regional workplace. вЂњClark recruited brand brand brand new investors through recommendations 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 opportunity that is lucrative household and company associates.вЂќ
The SEC alleges that as well as purchasing numerous cars that are expensive snowmobiles, Clark took investor funds to acquire a property theater, bronze statues along with other art for himself.
In accordance with the SECвЂ™s problem filed in U.S. District Court when it comes to District of Utah, Clark lured at the least 120 investors into their scheme.