The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical annual comes back of 80 % on the assets in his 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 payday advances and other facets of the firmsвЂ™ operations. Nevertheless, Clark rather commingled investor funds into just one 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.
вЂњInvestors had been guaranteed extraordinary returns while Clark had been really diverting their cash to help make such extraordinary personal purchases as a totally restored classic 1963 Corvette Stingray,вЂќ said Ken Israel, Director for the 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 to their investments and sought to generally share the profitable possibility with household and company associates.вЂќ
The SEC alleges that along with purchasing multiple cars that are expensive snowmobiles, Clark took investor funds to acquire a house movie theater, bronze statues as well as other art for himself.
Based on 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. Besides word-of-mouth referrals from earlier in the day investors, Clark additionally recruited investors by attending trade events in a variety of states, attending loan that is payday, and having to pay salespeople to find prospective investors to generally meet with Clark.