SAN DIEGO (CN) - Matthew La Madrid took more than $30 million from investors in his business, Plus Money, an "investment adviser to three purported hedge funds," and lost or spent nearly all of it, the Sec claims in Federal Court.
La Madrid, 41, of Jamul, took $30.6 million from more than 300 victims from May 2004 through July 2007, the SEC claims.
The SEC makes these allegations:
De La Madrid sent $7.6 million to Vision Quest Investments, a dba he formed in September 2007;
In November 2007, Vision Quest sent $10 million to relief defendant Palladium Holding Co., which is controlled by relief defendant Donald Lopez;
Palladium dissipated $2.5 million of the money by short-sell transaction of Treasure bonds, and wired $4.5 million "to various individuals and entities, including $500,000 to La Madrid, $1.8 million to several real estate title companies, $95,000 towards the purchase of two automobiles, and another $90,000 to a Denver car dealership."
Lopez, 58, of Denver, incorporates Palladium and is its sole director.
The SEC demands freezing of assets, expedited discovery, disgorgement, a restraining order and injunction, and penalties.
Here are the defendants: Plus Money Inc., and Matthew La Madrid, defendants; and relief defendants, The Premium Return Fund Limited-Liability Limited Partnership, The Premium Return Fund II Limited-Liability Limited Partnership, The Premium Return Fund III Limited-Liability Limited Partnership, Return Fund LLC, Return Fund II LLC, Return Fund III LLC, Return Fund IV LLC, Return Fund V LLC, Return Fund VI LLC, Palladium Holding Company, and Donald Lopez.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.