Ogden man accused of running Ponzi scheme
The business partner of a Utah man has agreed to a settlement with federal regulators who are alleging the pair ran a Ponzi scheme that took in $12 million.
Martin A. Pool of Atlanta has agreed to a settlement with the Securities and Exchange Commission over a civil complaint filed in U.S. District Court for Utah against Pool and Armand R. Franquelin of Ogden.
The SEC alleges the two operated Elva Group that illegally sold $12 million in promissory notes to about 130 investors.
The two told investors their money would be used to buy and develop real estate. Instead most of the money went to pay off other investors, for business expenses such as for salaries and travel and $2.4 million of it went directly to the two men, according to the lawsuit filed in July.
Pool has agreed to a settlement in which he is prohibited from further violations of federal securities laws and will have a penalty of about $1.4 million stayed unless he violates provisions of the agreement.
Pool's attorney declined to comment. Franquelin did not return a phone call seeking comment.
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