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Injunction and $7.4 Million Disgorgement Ordered in Tire Recycling Fraud Case
SEC v. Paul G. Merklinger, and Encore Associated Leasing, LLC
- 2010
- $8.8 Million
Defendant and his limited liability company raised over $7 million from five investors who were told the money would be used in a business shredding and recycling used tires. Investors were promised $15,000 in monthly leasing fees and investment interest, and returns of up to 372% after five years. However, the tire shredding equipment did not work, there was no reasonable basis for purported income and return figures, and the investors never received a dime from their investment. Defendant allegedly misappropriated over $1 million for personal use.
