The US Securities and Exchange Commission has filed charges against Two Texas companies and their principals accusing them of senior financial fraud and running a $2.4M Ponzi scam. The regulator brought its complaint in the US District Court for the Southern District of Houston Division.
The SEC contends that from ’10 to ’17, Clifton E. Stanley and his The Lifepay Group, LLC allegedly persuaded at least 30 older people to invest about $2.4M in retirement savings—approximately $1.3M of which he is accused of spending on his own country club memberships, travel, general living expenses, and entertainment bills. Stanley and Lifepay purportedly did this by making empty promises and touting significant investment returns of up to 36% annually. Many of Stanley’s alleged targets were investors in their 80’s and 90’s who lived in Texas and Louisiana.
In Ponzi scam fashion, investors received $1.1M of “returns” on their investments, which were actually funds that came from later investors and not returns at all. Meantime, investments were touted as “safe” and were supposedly to go toward real estate projects that would make money.