SECURITIES AND TRADE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING BUSINESS AND AFFILIATES
Category : cash central loans
LITIGATION LAUNCH NO. 17422 / March 19, 2002
Securities and Exchange Commission v. ACE Payday Plus, LLC d/b/a ACE Payday Plus II, LLC, ACE Management, LLC, ACE Payday Management, Inc., and James Bianco, Case No. 1-02-20858-Civ. -Ungaro-Benages (S.D. Fla. March 19, 2002)
Today, the Commission filed a crisis enforcement action in the us District Court when it comes to Southern District of Florida against ACE Payday Plus, LLC, d/b/a ACE Payday Plus II, LLC (“Ace Payday”), a start-up business purportedly offering “check cashing” and “payday advance” solutions; ACE Management, LLC and ACE Payday Management, Inc., two entities separately recognized as Ace Payday’s Manager; and James Bianco (“Bianco”), whom managed Ace Payday and its own affiliates. The Commission alleges that defendants raised at the very least $800,000 from at the very least 30 investors by fraudulently providing and membership that is selling in Ace Payday through telemarketers called “independent product sales workplaces” or “ISOs. ” The Complaint alleges that defendants told investors that 90% regarding the providing profits could be utilized to build up Ace Payday’s company whenever, in reality, 40% to 45per cent went along to the ISOs as product product sales commissions. The Complaint additionally alleges that defendants lured investors by guaranteeing investment that is excessive and by baselessly projecting extremely positive profits as high as 720percent each year. In the Commission’s movement, the court issued an purchase temporarily restraining defendants from breaking the antifraud and enrollment conditions associated with federal securities rules, freezing defendants’ assets, and granting other emergency relief. A hearing from the Commission’s movement for the initial injunction is planned for April 5, 2002.