SEC Alleges $10 Million Real Estate Con

NEWARK (CN) - Marcia Sladich and Kay Services, of Clifton, N.J., conned more than 1,000 people out of more than $10 million in a real estate Ponzi scheme, the SEC claims in Federal Court.

Sladich, sole owner and operator of Kay Services, guaranteed 50% to 100% returns within a year, and more money for each new investor her suckers referred to her, the SEC claims. It says Sladich never had any revenue-generating business or assets, and she sued the money to buy property in Brazil for herself and her family, to pay her personal expenses, and to pay off some old investors to keep the Ponzi scheme going. She allegedly ran the con game from late 2004 through September 2007.

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