Securities regulators in Massachusetts and Alabama issued cease-and-desist orders Wednesday against Premiere Asset Management, Inc. of Talladega, Alabama, and its principals for orchestrating a Ponzi scheme through an ad on Craigslist.
Secretary of the Commonwealth William Galvin of Massachusetts charged Premiere Asset Management — which was not registered as a broker-dealer or investment advisor–and its principals with fraud in offering unregistered securities in what an administrative complaint describes as a Ponzi scheme.
The Massachusetts Securities Division issued a temporary cease-and-desist order against the respondents, while the Alabama Securities Commission is also seeking a cease-and-desist order against Premiere and its principals.
The Massachusetts case involves a retired school teacher in the state who sent Premiere money last year after responding to an advertisement on Craigslist that promised a 100 percent return in as little as 48 hours. A spokesperson in Galvin’s office said that the school teacher invested nearly $200,000.
The spokesperson in Galvin’s office said there are “other victims” in Alabama, and that more ”could emerge.”
“An unregistered solicitor assured the investor his account was 100 percent secure ‘with the most reputable bank in NY, bank of Melon (sic),’” the Massachusetts complaint states.