SEC Halts Alleged Pyramid Scheme

MarketWatch Pulse

Two operators of a pyramid and Ponzi scheme in Colorado that promises 700% returns to investors have been charged and had their operation halted by the Securities and Exchange Commission. The SEC alleged on Wednesday that Kristine Johnson and Troy Barnes enticed investors into their company and raised $3.8 million since April 2014. Investors were told in Internet videos that they could make as much money as they wanted through purchasing positions costing $50 and receive a $400 payout on each one in three to six months. The SEC said the company had no legitimate business operations and was merely paying purported investment returns to earlier investors with new investment money and the owners were making cash withdrawals for personal use.

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