Permanent Injunction and Industry Bar in Alleged Ponzi Scheme Case

Defendant allegedly raised approximately $2.1 million from 18 investors through the fraudulent and unregistered offer and sale of securities, which proceeds purportedly were to be used to invest in a “credit card portfolio” consisting of a group of retail merchants who pay fees to a third party credit card processor each time one of the merchants’ customers makes a credit card transaction. However, the SEC found that respondent never purchased any credit card portfolios and instead used approximately $1.35 million of the investors’ funds to make Ponzi payments to prior investors, and the remaining approximately $760,000 for personal and business expenses.