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

SEC Halts $47 Million Investment Fraud at Utah-Based Cash Advance Businesses FOR IMMEDIATE LAUNCH 2011-73 Washington, D.C., March 28, 2011 – 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 offering fraud and Ponzi scheme. The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical annual comes back of 80 per cent on their opportunities in the businesses – Influence Cash LLC and Impact Payment Systems LLC. Investors had been told their funds could be held in split bank records and utilized to finance pay day loans and other facets of the firms’ operations. Nonetheless, Clark alternatively 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 lifestyle that is lavish. Extra Materials SEC Grievance Litigation Release No. 21903 “Investors were guaranteed extraordinary returns while Clark ended up being really diverting their funds to produce such extraordinary personal purchases 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 previous investors whom thought the Ponzi re re payments they received had been real comes back to their investments and sought to generally share the lucrative possibility with household and company associates. ” The SEC alleges that as well as purchasing numerous cars that are expensive snowmobiles, Clark took investor funds to buy a house movie movie...