MX Factors, LLC et al.
On February 26, 2004, the SEC obtained a temporary restraining order, asset freeze, repatriation order, and other relief against MX Factors, LLC, and others. On March 8, 2004, the Court converted the temporary restraining order to a preliminary injunction and expanded the order to include another defendant. The SEC alleged the defendants fraudulently induced more than 240 investors nationwide to invest over $33.5 million in Mx Factors, guaranteeing investors returns of 12% in 60 or 90 days and representing that investor funds would be used to provide accounts receivable financing to government-backed contractors. Instead, the SEC alleged the defendants actually operated a Ponzi scheme and skimmed investor funds to finance a Mexican crab fishing business, pay personal expenses, and fund overseas bank accounts. For more information about the SEC's action, you can read Litigation Release No. 18599 (Feb. 27, 2004).
The Court also appointed Robb Evans & Associates, LLC as Receiver. For the latest information, you can visit the Receiver's website.