U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22916 / February 4, 2014
Securities and Exchange Commission v. Michael P. Zenger, Civil Action No. 2:14-cv-00065 (USDC Utah, Filed January 31, 2014)
SEC Obtains Asset Freeze and Other Relief Against Michael P. Zenger
On January 31, 2014, the Securities and Exchange Commission obtained a temporary restraining order and an emergency asset freeze in an offering fraud orchestrated by Lehi, Utah resident Michael P. Zenger (Zenger).
The complaint alleges that since June 2013, Zenger solicited at least $200,000 from two friends for the purported purpose of trading futures contracts, commodities, and government securities. While Zenger used some investor money as represented, the complaint alleges that Zenger misappropriated approximately $100,000 of the $200,000 he raised to pay personal expenses, including airplane rentals, monthly credit card bills, payments to BMW and Mercedes Benz, purchases at Saks Fifth Avenue, Nordstrom and Costco, and other personal expenses.
The Commission's complaint charges Zenger with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks a preliminary and permanent injunction as well as disgorgement, prejudgment interest and civil penalties from Zenger.
The SEC's investigation was conducted by Jennifer Moore and Scott Frost; the litigation will be led by Thomas Melton.