TN Fatima

Main Menu

  • Home
  • Educational institution
  • Education group
  • Learning environment
  • Learning institution
  • More
    • Learning finance

TN Fatima

Header Banner

TN Fatima

  • Home
  • Educational institution
  • Education group
  • Learning environment
  • Learning institution
  • More
    • Learning finance
Learning finance
Home›Learning finance›Payday lender ordered to pay $39 million in embezzlement lawsuit – Financial Services

Payday lender ordered to pay $39 million in embezzlement lawsuit – Financial Services

By Elizabeth D. Ezell
July 22, 2022
0
0

July 22, 2022

Sheppard Mullin Richter & Hampton


To print this article, all you need to do is be registered or log in to Mondaq.com.

On June 29, a Florida court issued a final judgment against a Miami-based payday lender and its CEO resolving allegations that the defendants misappropriated funds from investors. According to complaint, the company fraudulently raised more than $66 million through the sale of promissory notes to more than 500 Venezuelan-American investors who were told the company would use their funds to fund payday loans through the offering and selling “safe and secure” promissory notes. . Investors were promised returns of up to 120%, but it was alleged that the company failed to generate revenue to cover its principal and interest payments due to investors.

The complaint also alleged that the CEO misappropriated funds from investors for personal gain and authorized the transfer of funds to friends and relatives with no apparent legitimate business purpose.

The company and the CEO have agreed to a final judgment under which they are permanently prohibited from trading in securities in the future and from committing further violations of the Securities Act and the Exchange Act. The company must also return $39 million to investors. The CEO is liable for approximately $4.5 million, which, if paid, will reduce the amount owed by the company by the same amount.

On July 13, the SEC filed new related charges against four company sales representatives for their role in soliciting dollars from investors in the unprofitable business. The lawsuit, filed in the Southern District of Florida, alleges the representatives sold more than $25 million in unregistered promissory notes to nearly 350 investors. None of the representatives were registered with the SEC as a dealer or were associated with registered dealers.

Put into practice : The misuse of investor funds in this particular case was particularly egregious. However, this series of enforcement actions should serve as a stark reminder that companies engaged in the sale of promissory notes must comply with federal and state securities laws at every stage and at all levels of employment, from sales representative to the CEO. The SEC, in particular, has signaled that it will vigorously enforce violations at both the corporate and individual level.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: Finance and Banking of the United States

Have I waived the terms of my contract?

McGlinchey Stafford

In that appeal, the Sixth Circuit Court of Appeals reversed and returned the decision of the District Court for the Northern District of Ohio, finding that the debt collector violated the Fair Debt Collection Practices Act. .

CFPB targets convenience fees

Cooley LLP

On June 29, 2022, the Consumer Financial Protection Bureau issued an advisory opinion stating that the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors…

Related posts:

  1. Get Instant Same Day Payday Loans Online in California –
  2. Top Energetic Features of Online Payday Loans Inside the Eddyville |
  3. Online Payday Loans: Market by 2028 | Business Strategy Analysis, Trader and Key Players
  4. Are home equity loans affordable?

CATEGORIES

  • Education group
  • Educational institution
  • Learning environment
  • Learning finance
  • Learning institution

RECENT POSTS

  • College of the Desert Creates a Blended Learning Environment as Fall 2022 Approaches
  • ICP: Historic educational institution mobilized KP people for Pakistan
  • Aim for a positive learning environment: Heather Iannarelli says the college has some exciting changes ahead
  • Advertising Sales Manager Walt Disney Media
  • Take out payday loans during inflation

ARCHIVES

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • July 2017
  • April 2017
  • March 2017
  • February 2017
  • September 2016
  • February 2016
  • December 2015
  • November 2015
  • July 2015
  • October 2014
  • June 2014
  • March 2010
  • Privacy Policy
  • Terms and Conditions