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SEC Files Complaint Against Daren L. Palmer and Trigon Group

February 28, 2009 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

Litigation Release No. 20918 / February 27, 2009

SEC v. Daren L. Palmer and Trigon Group, Inc., United States District Court for the District of Idaho (Civil Action No. CV 09-75-S-EJL) (February 26, 2009)

SEC Files Complaint Against Daren L. Palmer and Trigon Group, Inc. for Operating a $40 million Ponzi Scheme and Obtains Orders Freezing Assets, and Appointing a Receiver

The Securities and Exchange Commission filed a Complaint on February 26, 2009, in the United States District Court for the District of Idaho, alleging that Daren L. Palmer (“Palmer”), a resident of Idaho Falls, Idaho, and his investment business Trigon Group, Inc. (“Trigon”), a Nevada corporation, raised at least $40 million as part of a Ponzi scheme that has defrauded at least 55 investors. According to the Commission’s Complaint, from at least 1996 until October 2008, Palmer and Trigon defrauded investors by representing that invested funds would be used in a riskless trading program that earned annual returns of 20 percent or more. The Complaint alleges that Palmer and Trigon sold securities in the form of promissory notes and investment contracts in unregistered transactions, and told investors that their principal would be invested in indexes, S&P 500 options or futures, currency futures and stocks in a way that would generate high returns with no risk. The Complaint alleges that, instead, Palmer and Trigon were using funds put into the program by later investors to pay fictitious returns to earlier investors in a classic Ponzi scheme. The Commission’s Complaint further alleges that Palmer used investor funds to build a partially completed $12 million home in Idaho Falls, Idaho, to purchase snowmobiles, to pay himself compensation of $25,000 to $35,000 a month, and for other personal expenses. The Complaint also alleges that while Palmer told investors he was licensed to sell securities, he has never been licensed to sell securities and that neither Palmer nor Trigon is registered with the Commission in any capacity.

The Commission asked the court to order a preliminary injunction enjoining Palmer and Trigon from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and enjoining Palmer from future violations of Section 15(a) of the Exchange Act. In addition, on February 26, 2009, the court signed an order freezing all assets of Palmer and Trigon and appointing a receiver in the matter.

The Commission acknowledges the assistance of the U.S. Commodities Futures Trading Commission, the Federal Bureau of Investigation, and the Idaho Department of Finance in bringing this action.

http://www.sec.gov/litigation/litreleases/2009/lr20918.htm

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SEC Conducts Regional Securities Market Enforcement Program To Address Pyramid Schemes

November 4, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

FOR IMMEDIATE RELEASE
2008-261

Washington, D.C., Nov. 3, 2008 — The Securities and Exchange Commission announced today that it conducted an Understanding and Combating Unregulated Investment Schemes seminar in Jamaica from October 29 to 31. The three-day program included intensive training on methods for investigating and prosecuting pyramid and Ponzi-type investment schemes.

The regional program featured 65 delegates from 20 countries throughout Latin America and the Caribbean. The program was conducted primarily by SEC, Commodity Futures Trading Commission (CFTC), and International Monetary Fund (IMF) staff, and was hosted and co-sponsored by the IMF, Financial Services Commission of Jamaica, U.S. Agency for International Development, and the Caribbean Regional Technical Assistance Centre.

Ethiopis Tafara, Director of SEC’s Office of International Affairs, said, “Pyramid schemes have been with us since at least 1920 when Charles Ponzi first swindled nearly 17,000 investors out of millions before his scheme’s inevitable collapse. Pyramid schemes spread like viruses in financial markets, and continue to plague our markets today. The SEC is pleased to share its experience and techniques in investigating and prosecuting these pernicious frauds with our partners in the Caribbean and Latin America.”

Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement said, “Securities authorities must remain constantly vigilant for pyramid and Ponzi schemes and stamp them out as quickly as possible before they run their course. Since the beginning of 2008, the SEC has worked on over 24 Ponzi-type cases that raised over $1 billion from over 15,000 defrauded investors. The SEC appreciates the opportunity to collaborate with our international colleagues, particularly since these schemes are increasingly becoming global in scale.”

George Roper, Acting Executive Director, Financial Services Commission of Jamaica, added, “Given the current state of markets around the world, it is crucial that regulators remain committed to the task of protecting investors from predatory organizers who employ Ponzi-type schemes to deprive the public of their hard-earned money. It was our pleasure to collaborate with our Latin American and Caribbean counterparts, and we thank the SEC, CFTC, and IMF, as well as the other conference speakers, hosts, and sponsors, for conducting this valuable training program.”

The SEC’s technical assistance training program consists of bilateral and regional training programs, assessments, consultations, and review and comment on statutory and regulatory initiatives. The SEC has provided training for more than 1,900 foreign capital market officials from 117 foreign jurisdictions in fiscal year 2008 alone.

For more information on SEC’s technical assistance program contact Dr. Robert M. Fisher or Z. Scott Birdwell at the Office of International Affairs at 202-551-6690, or by email at OIA@SEC.gov.

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What is a Ponzi scheme?

October 12, 2008 By Paul (Founder, WorkAtHomeTruth) Leave a Comment

Since we’ve been getting this question so often now, we pulled the definition of a ponzi scheme directly from the FBI website:

“What is a “Ponzi” Scheme?

A Ponzi scheme is essentially an investment fraud wherein the operator promises high financial returns or dividends that are not available through traditional investments. Instead of investing victims’ funds, the operator pays “dividends” to initial investors using the principle amounts “invested” by subsequent investors. The scheme generally falls apart when the operator flees with all of the proceeds, or when a sufficient number of new investors cannot be found to allow the continued payment of “dividends.”

This type of scheme is named after Charles Ponzi of Boston, Massachusetts, who operated an extremely attractive investment scheme in which he guaranteed investors a 50 percent return on their investment in postal coupons. Although he was able to pay his initial investors, the scheme dissolved when he was unable to pay investors who entered the scheme later.

Some Tips to Avoid Ponzi Schemes:

  • As with all investments, exercise due diligence in selecting investments and the people with whom you invest.
  • Make sure you fully understand the investment before you invest your money”

Click here to read more about Ponzi Schemes and other common fraud schemes at the FBI website

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