U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23419 / December 4, 2015
Securities and Exchange Commission v. National Note of Utah and Wayne L. Palmer, Civil Action No. 2:12cv00591
SEC Wins Case Against Ponzi Schemer in Utah
The Securities and Exchange Commission prevailed in court this week in a case against Ponzi schemer Wayne L. Palmer and his company National Note of Utah. The SEC filed fraud charges against them in June 2012.
The Court found that Palmer promised more than 600 investors a guaranteed 12% annual return and assured them their money was completely secured and being used to make hard money loans, purchase notes, and acquire real estate. In reality, Palmer deposited investor funds in one bank account titled "investor trust account," wired the funds to a second bank account titled "investor interest account," and then used the funds to pay returns to other investors.
The Court ordered that Wayne L. Palmer pay disgorgement of $1,767,287.10 and that National Note disgorge $65,188,155.83. The Court also imposed civil penalties of $1,050,000 against Palmer and $900,000 against National Note.
The SEC's investigation was conducted by Alison Okinaka, Paul N. Feindt, and Scott Frost of the Salt Lake Regional Office; the litigation was led by Amy J. Oliver and Daniel J. Wadley.
For more information, see the following Press Release: 2012-119 (June 25, 2012).