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Washington, D.C., March 28, 2011 – 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 per cent on the opportunities in his 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 loans that are payday other facets of the businesses’ operations. Nevertheless, Clark rather commingled investor funds into just one pool and used them which will make unauthorized investments, pay fictitious earnings to previous investors, and fund his or her own lifestyle that is lavish.
“Investors had been guaranteed extraordinary returns while Clark had been really diverting their funds in order to 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 new investors cash store loans online through recommendations from previous investors whom thought the Ponzi re payments they received had been real comes back to their investments and sought to generally share the profitable possibility with household and company associates.”
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