Washington, D.C. – 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 % to their assets in their businesses – Impact money LLC and Impact Payment Systems LLC. Investors had been told their money could be held in split bank reports and utilized to invest in pay day loans and other facets of the firms’ operations. Nevertheless, Clark rather commingled investor funds into an individual pool and utilized them to produce unauthorized investments, pay fictitious earnings to previous investors, and fund his very own lifestyle that is lavish.

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“Investors had been guaranteed extraordinary returns while Clark ended up being really diverting their cash to produce such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray,” said Ken Israel, Director of this 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 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.”

The SEC alleges that as well as purchasing numerous cars that are expensive snowmobiles, Clark took investor funds to acquire a house movie theater, bronze statues as well as other art for himself.

In line with the SEC’s problem filed in U.S. District Court for the District of Utah, payday loans review Clark lured at the very least 120 investors into their scheme. Besides word-of-mouth referrals from previous investors, Clark additionally recruited investors by attending industry events in several states, attending loan that is payday, and having to pay salespeople to find prospective investors to meet up with Clark. (more…)