John Scott Clark, Impact Cash, LLC and Impact Payment Systems, LLC
On March 25, 2011, the SEC obtained an emergency asset freeze in an alleged $47 million offering fraud and Ponzi scheme orchestrated by John Scott Clark through Impact Cash, LLC and Impact Payment Systems, LLC, companies owned and controlled by Clark.† In addition to the asset freeze, the Court has appointed a Gil A. Miller as Receiver to preserve and marshal assets for the benefit of defrauded investors.†
According to the complaint, from March 2006 through September 2010, Impact and Clark (by himself and through sales persons) raised more than $47 million from at least 120 investors for the stated purposes of funding payday loans, purchasing lists of leads for payday loan customers and paying the operating expenses of Impact. †Instead of using investor funds to make payday loans as represented, the SEC alleges that Clark diverted their funds to maintain a lavish lifestyle, to fund outside business ventures and to pay purported profits to earlier investors from new investor funds.
For more information about the SECís action, you can read Litigation Release No. 21903 (Mar. 28, 2011).
You can find information about the Receivership by visiting the website set up by Mr. Miller.