SEC Halts Multiple Ponzi Schemes Spanning 30 States

Emergency injunctive action eight individuals and four businesses to halt alleged ongoing Ponzi schemes calculated to have raised at least $28 million from at least 600 investors in 30 states. Securities nominally structured as hotel timeshare rental interests were offered and sold using false promotional materials. Investors were told, among other things, that: (1) the proceeds of the offerings would be used to purchase and refurbish resort properties; and (2) returns would be derived from subleasing of the investors’ timeshare units by third party subleasing agents. However, investor funds were instead misappropriated for Ponzi payments and/or defendants’ personal use.