The Securities and Exchange Commission today announced charges against Michael Staisil for helping convicted Ponzi-schemer Kevin Merrill raise approximately $75 million for investments in purported debt portfolios offered by Global Credit Recovery. In September 2018, the SEC charged Merrill, Global Credit Recovery, and others with operating the $345 million Ponzi-like scheme, and obtained permanent injunctions against Merrill and two individuals in September 2019. Merrill and the two other individuals pleaded guilty in a parallel criminal case to charges arising from the same misconduct.

The complaint against Staisil alleges that he acted as an unregistered broker and actively recruited investors for Merrill and Global Credit Recovery. According to the complaint, Staisil made material misrepresentations and omissions to investors, including lying about his own wealth and investments in the scheme and falsely overstating the amount that Merrill and Global Credit Recovery had raised. The complaint alleges that Merrill paid Staisil approximately $400,000 for his efforts.

The SEC's complaint, filed in the U. S. District Court for the District of Maryland, alleges violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and violations of the registration provisions of Section 15(a) of the Exchange Act. The complaint seeks a permanent injunction, disgorgement with prejudgment interest, and a civil penalty.

The SEC's continuing investigation is being conducted by Norman P. Ostrove and Dustin E. Ruta in the Philadelphia Regional Office, and is supervised by Scott A. Thompson and Kelly L. Gibson.  The SEC's litigation against Staisil is being led by Mark R. Sylvester and Jennifer C. Barry.