SECURITIES AND EXCHANGE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING BUSINESS AND AFFILIATES

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SECURITIES AND EXCHANGE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING BUSINESS AND AFFILIATES

SECURITIES AND EXCHANGE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING BUSINESS AND AFFILIATES

LITIGATION LAUNCH NO. 17422 / March 19, 2002

Securities and Exchange Commission v. ACE Payday Plus, LLC d/b/a ACE Payday Plus II, LLC, ACE Management, LLC, ACE Payday Management, Inc., and James Bianco, Case No. 1-02-20858-Civ. -Ungaro-Benages (S.D. Fla. March 19, 2002)

Today, the Commission filed a crisis enforcement action in america District Court for the Southern District of Florida against ACE Payday Plus, LLC, d/b/a ACE Payday Plus II, LLC («Ace Payday»), a company that is start-up providing «check cashing» and «payday advance» solutions; ACE Management, LLC and ACE Payday Management, Inc., two entities individually recognized as Ace Payday’s Manager; and James Bianco («Bianco»), whom managed Ace Payday and its own affiliates. The Commission alleges that defendants raised at the least $800,000 from at the very least 30 investors by fraudulently providing and offering membership devices in Ace Payday through telemarketers called «independent product sales workplaces» or «ISOs. » The Complaint alleges that defendants told investors that 90% associated with the providing profits could be utilized to build up Ace Payday’s company whenever, in truth, 40% to 45per cent went along to the ISOs as product product sales commissions. The Complaint also alleges that defendants lured investors by guaranteeing investment that is excessive and also by baselessly projecting extremely positive earnings as high as 720% per 12 months. From the Commission’s movement, the court issued an order temporarily restraining defendants from violating the antifraud and enrollment conditions associated with the federal securities rules, freezing defendants’ assets, and giving other emergency relief. A hearing regarding the Commission’s movement for a initial injunction is planned for April 5, 2002.

The names that are complaint defendants:

Ace Payday, a Florida liability that is limited headquartered in North Miami Beach, Florida.

Bianco, a resident of North Miami Beach, Florida, and also the executive that is chief of Payday, Ace Management, LLC, and Ace Payday Management, Inc.

Ace Management, LLC, identified when you look at the providing materials as a Florida liability that is limited, Ace Payday’s «Manager, » and «a specialist wage advance and always check cashing Management Co. «

Ace Payday Management, Inc., a Florida firm identified on Ace Payday’s Florida state filings since the LLC supervisor for Ace Payday.

The Complaint alleges that:

Defendants have carried out the providing by way of different written materials, that they provided for potential investors at the way associated with ISOs.

Within these materials, defendants describe Ace Payday being a start-up business in the commercial of providing «retail pay day loan» and «check cashing» services, declare that check cashing is possibly » the quickest growing industry in the us today, » and encourage investors to «take benefit of taking part in this profitable industry. » Defendants task that http://paydayloanslouisiana.net the business’s cash advance operations will yield «the average of as much as 360% profit per 12 months» and therefore the business’s check cashing operations will generate «up to 720% each year. » they provide investors (a) interest during the price of 20% per year to be compensated at a price of 5% each quarter for 3 years, and (b) a pro-rata share regarding the organization’s earnings. In reality, between 40% and 45% of this providing profits have already been utilized to pay the ISO’s, which behave as unregistered agents soliciting investors that are unsophisticated. Defendants don’t have any foundation for guaranteeing 20% interest payable quarterly or projecting such positive earnings – particularly now, as Ace Payday currently has neglected to satisfy its quarterly obligations to investors.

The Commission’s grievance charges most of the defendants with violating the antifraud and enrollment conditions of this federal securities guidelines, specifically Sections 5(a), 5(c) and 17(a) for the Securities Act of 1933, Section 10(b) associated with the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. As well as the emergency relief described above, the Complaint seeks permanent injunctions prohibiting future violations of this securities guidelines, disgorgement, and civil charges.

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