Permanent Injunction Against Orchestrator of $50 Million Ponzi Scheme

Defendant, an unregistered investment adviser, raised approximately $50 million dollars from at least 110 investors by offering unregistered limited partnership interests in IPOF, an unregistered investment company, and falsely representing to them that: IPOF used two low-risk investment strategies; he protected investor principal in a purported Goldman Sachs money market account and only used the interest earned to invest; IPOF had high historical returns; and IPOF guaranteed high periodic returns. In reality, he was conducting a Ponzi scheme and misappropriated funds for payments to early investors and personal use, and invested the rest in one small-cap public company (Innotrac Corp.). He was also criminally convicted in parallel proceeding.