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US SEC Expenses Georgia Resident with Working a $110 Million Ponzi Scheme

The US Securities and Trade Fee (SEC) introduced on Wednesday that it has obtained an emergency motion in a millionaire Ponzi scheme case and filed cease and desist. At a press  launch, the watchdog filed an emergency motion to cease a Ponzi scheme allegedly operated by Marietta, Georgia resident John Woods and two entities he controls: a registered funding adviser Livingston Group Asset Administration Firm, Southport Capital (Southport), and funding fund Horizon Non-public Fairness, III LLC (Horizon).

Yesterday, the US District Court docket for the Northern District of Georgia granted the SEC a brief restraining order to freeze the defendants’ property, accused of elevating over $110 million fraudulently from over 400 traders in 20 states. The funding product supplied by them have been memberships items in Horizon.

“Woods, Southport, and different Southport funding adviser representatives allegedly informed traders – together with many aged retirees – that their Horizon investments have been protected, can be used for various funding actions, would pay a set fee of return, and that traders may get their principal again with out penalty after a brief ready interval,” the SEC famous. Nonetheless, the claims made all through the promotion of the scheme have been pretend and deceptive, in keeping with the US monetary watchdog.

‘Returns’ Had been Paid with Different Buyers’ Funds

In reality, authorities mentioned Horizon “didn’t earn any important income from reputable investments” and such returns promised got there from different traders’ funds – in the identical manner {that a} Ponzi scheme operates.

“As alleged within the grievance, Woods and Southport preyed upon their purchasers’ fears of shedding their hard-earned financial savings and satisfied them to position tens of millions of {dollars} right into a Ponzi scheme by falsely promising them a protected funding with regular returns,” Nekia Hackworth Jones, Director of the SEC’s Atlanta Regional Workplace, commented. The investigation retains underway relating to this case.

On July 14, the US SEC filed prices on two people based mostly in Israel with allegedly defrauding US traders out of tens of millions of {dollars} by way of binary choices.

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