The U.S. Securities and Exchange Commission accused a Utah man of defrauding investors of $100 million after failing to fulfill promises of higher returns in a real estate-based Ponzi scheme.
The SEC has obtained a temporary restraining order and asset freeze against Wayne L. Palmer and his firm, National Note of Utah LC, both of West Jordan, Utah.
According to the complaint, Wayne Palmer of National Note of Utah, lured more than 600 individuals into investing in mortgage notes and real estate assets by promising annual returns of 12 percent a year.
Palmer told investors that their money would be secure and that his firm never missed paying principal or interest on its promissory notes, the SEC said.
He also told investors that National Note returns did not fluctuate and that they were guaranteed payment even if property owners missed payment on mortgage loans that National Note held.
"Palmer promised double-digit returns at his real estate seminars, where investors learned the hard way about his lies and deceit," Kenneth Israel, head of the SEC's regional office in Salt Lake City, said in a statement.
