On Jun. 19, SEC shut-down $102mn a nationwide Ponzi scheme.
- Perry Santillo, Christopher Parris, Paul LaRocco, John Piccarreto, Thomas Brenner.
- Companies: First National Solution, United RL Capital Services, Percipience Global.
- 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.
- 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.
- 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.