The US Securities and Exchange Commission has moved to obtain temporary restraining order and asset freeze on an investment adviser and his associates from operating a $100m Ponzi scheme.
The SEC said in a statement that it has filed an emergency action to stop a fraudulent Ponzi scheme allegedly perpetrated by Georgia resident John Woods and two entities he controls: registered investment adviser Livingston Group Asset Management Company, d/b/a Southport Capital (Southport), and investment fund Horizon Private Equity, III LLC (Horizon).
On August 24, the United States District Court for the Northern District of Georgia granted a temporary restraining order and asset freeze with respect to defendants Woods and Horizon and ordered expedited discovery with respect to Southport, among other relief.
As alleged in the complaint, Woods and Southport preyed upon their clients’ fears of losing their hard-earned savings and convinced them to place millions of dollars into a Ponzi scheme by falsely promising them a safe investment with steady returns,” SEC spokesman.
400 investors
According to the SEC’s complaint, filed in the United States District Court for the Northern District of Georgia, the defendants have raised more than $110 million from over 400 investors in 20 states by offering and selling membership units in Horizon.
Woods, Southport, and other Southport investment adviser representatives allegedly told investors – including many elderly retirees – that…