SEC Halts $47 Million Investment Fraud at Utah-Based Pay Day Loan Organizations

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SEC Halts $47 Million Investment Fraud at Utah-Based Pay Day Loan Organizations

Washington, D.C. – 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 % to their assets in their businesses – Impact money LLC and Impact Payment Systems LLC. Investors had been told their cash could be held in split bank reports and utilized to finance loans that are payday other areas of the businesses’ operations. But, Clark alternatively commingled investor funds into an individual pool and utilized them to create unauthorized investments, pay fictitious earnings to previous investors, and fund his or her own luxurious life style.