The SEC just filed suit against John Scott Clark, Impact Cash, and Impact Payment Systems.
The suit alleges Clark and Impact, which operated an online payday loan business, effectively lured investors in and took their money.
From March 2006 to September 2010, Impact and Clark raised more than $47 million from 120 investors to run Impact and buy payday loan leads.
The SEC claims Clark then used the cash raised for his own personal use.
Clark represented to investors that Impact could generate returns averaging at least 80% per year.
One salesperson was paid more than $500,000 over a period of less than five years to locate potential investors.
Besides using some of the funds for his own use, Clark also used some funds for a real estate investment company, a diabetes research company and an online products store.
Some of the borrower lists Clark allegedly purchased for the online payday loan venture were nothing more than a fabrication. – Source