“Consequently, in order to pay interest, dividends and maturing note payments, Defendants resorted to using a combination of loans from outside lenders, merchant cash advances, money raised from new and existing investors, and transfers from other portfolio companies to cover obligations.”
What makes it a Ponzi scheme is that they intended to defraud investors. This sounds more like a bunch of idiots who had to borrow from Peter to pay Paul.
The SEC’s suit alleges that between 2020 and 2022, Mehr and Lopez, “made material misrepresentations” to hundreds of investors about the bankrupt retailers they had acquired. For example, to entice individuals to invest in their acquisitions, they said their portfolio companies were “on fire” and that “cash flow is strong.” They also told prospective backers that money raised for a company would only be invested in that specific firm. That proved not to be the case
Of course, who knows whether it is true, although it sounds plausible. But absolutely it sounds like they intended to defraud investors.
You know, just some sparkling investment fraud
What makes it a Ponzi scheme is that they intended to defraud investors. This sounds more like a bunch of idiots who had to borrow from Peter to pay Paul.
Of course, who knows whether it is true, although it sounds plausible. But absolutely it sounds like they intended to defraud investors.