Credit Nation Capital Attorney Participated in $30M Ponzi Scheme
The U.S. Securities and Exchange Commission (SEC) has filed suit in Georgia federal court against an Atlanta attorney for allegedly participating in a $30 million Ponzi scheme that duped more than 100 investors.
The SEC complaint says that Marc A. Celello, general counsel for Credit Nation Capital LLC, assisted in a Ponzi scheme orchestrated by the company’s CEO James A. Torchia.
SEC Claims Celello Was Complicit in the Ponzi Scheme
The SEC alleges that Celello knew that “Torchia was using investor funds contrary to the representations made in the offering memoranda.” It alleges that Celello assisted in drafting offering materials and signing off on advertisements that provided false depictions of CN Capital’s profitability in spite of the knowledge that CN would not be able to pay off investors.
It goes on to say that Celello also “substantially assisted” Torchia in the scheme by diverting funds from Credit Nation, often by allowing that money to be routed through his Interest on Lawyers Trust account, and in one instance he had an employee create a fake balance sheet showing assets that Credit Nation didn’t own.
Credit Nation Capital Ponzi Scheme
According to the SEC, Torchia and the Credit Nation family of companies, which includes CN Capital and Credit Nation Acceptance LLC, duped investors into buying promissory notes and fractional interests in life settlement contracts. Investors were led to believe that the investments were safer than they were, unaware that their money was used to pay “returns” to other investors, invested in other businesses, transferred to Torchia’s family members, and even to Torchia himself.
In 2015, the SEC sued Credit Nation Capital in Georgia federal court, alleging a sprawling fraud fueled with tens of millions of dollars in investor funds raised since 2009 through two investment schemes.
In March, Torchia agreed to a judgment against him in a related SEC civil suit without admitting or denying the agency’s allegations.
Have You Lost Money in a Ponzi Scheme?
If you believe you have been the victim of a Ponzi scheme or other investment scheme, you may have certain legal rights that require your immediate attention.
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If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.