$17 Million Ponzi Scheme Enjoined

Defendants defrauded approximately 150 people out of at least $17 million through the unregistered offer and sale of securities in the form of notes issued under the names of The Haven Equity Company and “Lech notes.” Defendant McNaughton was the front line issuer/salesperson, and investors were told that their money would be sent to the wealthy defendant Lech, who purportedly was going to use his expertise in stock options trading to generate guaranteed annual returns of 15% to 20%. Instead of investing the funds, however, Lech transferred some of investor funds back to McNaughton to pay other investors, and also used some funds to pay for personal expenses. Thereafter, when the monthly payments stalled, Lech and McNaughton attempted to perpetuate their scheme by convincing investors to transfer their Haven Equity notes to Lech for his personal guarantee of their principal and interest. None of those investors saw another dime.