SEC Shuts $102mn Ponzi Scheme

• Perry Santillo, Christopher Parris, Paul LaRocco, John Piccarreto, Thomas Brenner.
• Companies: First National Solution, United RL Capital Services, Percipience Global.

Fund Raising

• Fraudulently raised more than $102mn, from 637 investors across US since 2011.
• Accused of cheating 600 investors using securities sales in issuers they controlled.
• Found investors from buying book of business of retiring investment professionals.
• Then persuaded acquired clients to withdraw savings from traditional investments and invest in one of the issuers, controlled by the three defendants, or associates.

False Claims

• Claimed that offered investment would guarantee dividend or double-digit return.
• Defendants took $20mn to enrich themselves, paid $38mn in Ponzi-like payments.
• Remainder transferred, in transactions that appear unrelated to issuer businesses.

Enforcement

• Charges defendants of violating anti-fraud provisions of the federal securities laws.
• Court granted SEC’s request for an asset freeze, and temporary restraining order.
• Hearing in 10 days, will consider ordering preliminary injunction and asset freeze.