editorial
SEC Charges Pedram Abraham Mehrian and Two Companies with Multi-Year Ponzi Scheme
In a recent development, the Securities and Exchange Commission (SEC) has filed charges against Pedram Abraham Mehrian and two companies under his control, accusing them of conducting a multi-year Ponzi-like scheme. The SEC alleges that Mehrian deceived investors who purchased $17.5 million worth of promissory notes.
According to the SEC, Mehrian and his companies, Strategic Legacy Investment Group, Inc. and SLIG High-Interest Liquid Savings Company, raised capital from investors by promising “guaranteed interest” rates that surpassed those offered by banks. Investors were lured in with the promise of rates as high as 9%.
Mehrian allegedly assured investors that the notes were completely safe and secure due to being “backed” and “collateralized” by Strategic Legacy’s diverse portfolio of assets, which he claimed were recession-proof.
However, the SEC’s investigation revealed a starkly different reality. The defendants allegedly resorted to making Ponzi-like payments to cover up losses while providing false statements that showed growing account balances. Unfortunately, as of the end of 2020, there were not enough funds available to honor redemption requests.
In response to these findings, the complaint filed by the SEC seeks a conduct-based injunction and an officer and director bar against Mehrian. Additionally, the complaint also requests injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant involved in the scheme.
This latest case serves as a reminder for investors to exercise due diligence and thoroughly research investment opportunities before committing their hard-earned money. The SEC remains committed to protecting investors and holding individuals accountable for fraudulent schemes that harm innocent victims.
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