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Saturday, May 18, 2024 | Back issues
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$60 Million Ponzi in Utah, SEC Says

SALT LAKE CITY (CN) - Raymond P. Morris ran a $60 million Ponzi scheme through his companies E&R Holdings, Wise Financial, and Momentum Leasing, the SEC says in Federal Court. "Morris did not act alone," the SEC says. It also sued James L. Haley, Cornerstone Capital Fund, Vantage Point Capital, Jay J. Linford, Freedom Group, and Luc D. Nguyen, an attorney.

Morris, 42, lives in Draper, Utah. "Although Morris told investors their principal would be deposited in a secure account and only would be used to verify deposits, Morris removed investor money and used it to support his extravagant lifestyle and to make Ponzi payments to some investors. Morris was assisted by Haley, Nguyen and Linford, who raised capital for Morris by making material misrepresentations to investors," according to the complaint.

Attorney Nguyen made at least $388,000 from the scam, the SEC says. It adds: "Morris used investor money to support a lavish lifestyle, including a luxurious home and several sports cars, and to make illusory interest payments to early investors in his scheme."

The SEC seeks disgorgement and penalties and it wants the men never to do such a thing again.

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