A Hyde Park guy happens to be accused in federal court of orchestrating a Ponzi scheme beneath the guise of a online cash advance business.
The Securities and Exchange Commission on Friday filed a grievance in U.S. District Court against John Scott Clark, 58, along with his companies, Logan-based Impact money and Impact Payment techniques. The SEC alleges that between March 2006 and September 2010, significantly more than $47 million grew up from 120 investors have been guaranteed luxurious returns for funding loans that are payday.
In line with the problem, Clark offered securities through both organizations that totaled $47 million. About $4 million of this presumably grew up for equity assets when you look at the organizations, whilst the sleep originated in investors who decided to offer money to your businesses for pay day loans. But Clark, whom could never be reached for remark Friday, redirected funds for individual usage and outside small business ventures, the SEC alleges. He additionally utilized the funds from brand new investors to repay earnings to investors that are initial the grievance states.
Clark allegedly told his investors that the businesses could produce revenue averaging at the very least 80 per cent every year and that investors will be entered as a joint working contract with all the organizations to invest in the payday advances, the grievance states. Continue reading In line with the issue, Clark sold securities through both ongoing organizations that totaled $47 million.