His name is John Scott Clark, and according to the Securities and Exchange Commission, he’s a Ponzier. The Utah man and his two funds, Impact Cash and Impact Payment Systems, scored $47 million from gullible investors, including three hedge funds that should have known better.
Clark is accused of lying to investors and misappropriating funds. The trio of unnamed hedge funds invested at least $15 million with Clark, who promised the clueless threesome annual returns of 55 percent. The rooked hedge funds hail from San Francisco and New York. It was apparently as easy as stealing candy from a baby.
Some investors were told lurid tales of 80 percent returns and dove in with eyes wide shut. As Ken Israel, chief of the Salt Lake City SEC office put it:
"Clark recruited new investors through referrals from earlier investors who thought the Ponzi payments they received were actual returns on their investments and sought to share the lucrative opportunity with family and business associates."
Clark was no slouch when it came to self-indulgence. Investment money lined his pockets, buying him cars, snowmobiles, a home theater worth $25,000, and a lot of dubious “art”. 120 investors had been told by Clark that their money would be kept in segregated accounts. Instead, it went into his personal account.
Clark was so arrogant, he usually didn’t even bother to provide financial statements, and the ones he did provide were wack.
© 2011 Hedge Fund Writer LLC
