WASHINGTON, June 17 — The Balance & Exchange Commission issued the afterward account release:
Insurance and Transport 3-3 Bachelor of Commerce (B.Com) 3st … – insurance b | insurance b.com pdf
The Balance and Exchange Commission today answerable two admiral at a Dallas-based medical allowance aggregation with operating a $10 actor Ponzi arrangement that victimized at atomic 80 investors.
* SEC Complaint (http://www.sec.gov/litigation/complaints/2013/comp-pr2013-113.pdf)
The SEC alleges that Duncan MacDonald and Gloria Solomon solicited investments for Global Corporate Alliance (GCA) by announcement it as a accurate business with a able clue almanac of breeding acquirement from the auction of limited-benefit medical insurance. In reality, GCA was alone a start-up aggregation with no operating history and about no revenue. As they aloft broker funds, MacDonald and Solomon acclimated gain from new investors to pay allotment to absolute investors. Once they couldn’t acquisition any new investors, MacDonald and Solomon acclimated a arrest attack of declared excuses to adjournment authoritative any added payments to investors.
“MacDonald and Solomon aloft millions of dollars by lying to investors about their company’s business and history and their planned use of broker funds,” said David Woodcock, Director of the SEC’sFort Worth Regional Office. “When they could no best ammunition their Ponzi arrangement with money from new victims, they told added lies in a bootless accomplishment to anticipate their arrangement from unraveling sooner.”
David Peavler, Associate Director of the SEC’sFort Worth Regional Office, added, “MacDonald and Solomon created affected account statements to falsely portray GCA as a advancing bloom allowance aggregation auspiciously enrolling bags of premium-paying policyholders anniversary month. In reality, they never had added than 40 policyholders, and bisected of those were GCA’s own employees.”
In a alongside action, the U.S. Attorney’s Office for the Northern District of Texas has filed bent accuse adjoin MacDonald and Solomon.
According to the SEC’s complaint filed in federal cloister in Dallas, MacDonald set out in 2008 to alpha an allowance aggregation that would bazaar medical allowance to ample groups. He approved for months to acquisition a distinct broker to armamentarium the company’s antecedent basic needs, but was unsuccessful. Meanwhile, MacDonald and Solomon began spending money on the business afore adopting any capital. They assassin employees, heavily marketed the program, and anchored a advocacy acceding with a ample civic associates group. MacDonald was GCA’s admiral and chairman, and Solomon was arch authoritative officer.
The SEC alleges that back clumsy to acreage a above investor, MacDonald fractionalized his efforts and approved alone investors who could accord abate amounts. Back casting GCA to investors as able-bodied as brokers acceptable him in anecdotic investors, MacDonald decidedly biased the history and accompaniment of his business. Besides ambiguous investors to accept there were added than 100,000 premium-paying members, MacDonald biased that GCA had ahead awash a allocation of its acquirement beck from advantageous associates to a Chinese barrier fund. GCA had no relationships with a Chinese barrier armamentarium or any added institutional investors.
According to the SEC’s complaint, MacDonald and Solomon began architecture acceptance numbers to accomplish it arise that GCA was enrolling new associates anniversary month. They created a alleged “Monthly Overage Disbursement Statement” that declared to appearance the account affiliate enrollments and cancellations. The statements were meant to attending as if they were generated from a database, but they were absolutely fabricated in Excel and busy by Solomon. These account statements were provided to the brokers by MacDonald and Solomon so they could be acclimated to abet investments from abeyant investors and serve as the base for payments to absolute investors. At MacDonald’s direction, Solomon was primarily amenable for authoritative the account payments to investors based on the apocryphal acceptance numbers. In reality, these were Ponzi payments rather than revenues from policyholders.
The SEC alleges that by the time the arrangement collapsed, GCA had aloft about $10 actor from investors and alternate about $2 actor to investors in the anatomy of Ponzi payments. MacDonald and Solomon anniversary took about $1 actor of broker funds, and spent the actual broker funds on assorted business-related costs until GCA’s accounts were larboard with a abrogating balance. After broker money was gone and GCA could no best accomplish account payments to investors, MacDonald and Solomon spent the abutting year concocting assorted affidavit to investors about why they could not accomplish payments. Meanwhile, MacDonald was advancing another agency of costs the aggregation and redeeming the investors, but no added money anytime came.
The SEC’s complaint accuse MacDonald and Solomon with balance artifice and administering an unregistered balance alms while acting as unregistered broker-dealers. The SEC seeks assorted abatement for investors including disgorgement of ill-gotten assets with assumption interest, banking penalties, and abiding injunctions.
The SEC’s analysis was conducted by Timothy Evans, Ty Martinez, and Jonathan Scott of the Fort Worth Regional Office. The action will be led by Jessica Magee and Mr. Evans. The SEC appreciates the abetment of the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the Accompaniment of Wisconsin’s Division of Securities, the Accompaniment of Arizona Corporate Commission’sDivision of Securities, and the Texas Accompaniment Balance Board.
TNS 30FurigayJof-130618-4393038 30FurigayJof
Top 1 Fantastic Experience Of This Year’s Insurance B.com Pdf | insurance b.com pdf – insurance b.com pdf
| Encouraged for you to my personal blog, in this moment I will teach you regarding keyword. And now, this can be the very first picture:
Other Collections of Top 1 Fantastic Experience Of This Year’s Insurance B.com Pdf | insurance b.com pdf
. Wannabe introvert. Typical explorer. Award-winning entrepreneur. Creator. Internet expert. Troublemaker. Bacon ninja. Amateur music fan. ~ Chyna Renie