The SEC recently filed suit against a Texas man it alleged to have defrauded investors out of $14,000,000. Many of the scheme’s victims were retired police officers.
According to the civil complaint, which you can read here, Victor Farias and his company, Integrity Aviation and Leasing, solicited investments from almost 100 different individuals. The defendant company was supposed to use the funds as capital to support a business model in which it bought and leased aviation parts. Instead, millions went toward unrelated ventures and personal expenses, such as country club bills. Moreover, in true “Ponzi” fashion, funds from new investors were used to satiate the demands of earlier investors.
On a somewhat happier note, a Georgia businessman will pay back $23 million to at least 100 investors in his plan of converting landfill waste in to fuel. As is common, the promoter over-stated the success of his business model and promised generous investment returns while diverting funds to support a lavish lifestyle. According to the SEC, the businessman knew his company “never had the ability or expertise to develop [the project].”
The attorneys and paralegals at Cosgrove Law Group, LLC have been representing defrauded investors around the nation for over a decade. Let us know if you need our help.