SECURITIES AND TRADE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING COMPANY AND AFFILIATES

September 3, 2020

SECURITIES AND TRADE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTHERN FLORIDA CHECK CASHING COMPANY AND AFFILIATES

LITIGATION LAUNCH NO. 17422 / March 19, 2002

Securities and Exchange Commission v. ACE Payday Plus, LLC d/b/a ACE Payday Plus II, LLC, ACE Management, LLC, ACE Payday Management, Inc., and James Bianco, Case No. 1-02-20858-Civ. -Ungaro-Benages (S.D. Fla approved cash. March 19, 2002)

Today, the Commission filed an urgent situation enforcement action in the us District Court when it comes to Southern District of Florida against ACE Payday Plus, LLC, d/b/a ACE Payday Plus II, LLC (“Ace Payday”), a company that is start-up providing “check cashing” and “payday advance” solutions; ACE Management, LLC and ACE Payday Management, Inc., two entities individually recognized as Ace Payday’s Manager; and James Bianco (“Bianco”), whom managed Ace Payday as well as its affiliates. The Commission alleges that defendants raised at the very least $800,000 from at the very least 30 investors by fraudulently providing and membership that is selling in Ace Payday through telemarketers called “independent product sales workplaces” or “ISOs. ” The Complaint alleges that defendants told investors that 90% of this providing profits is utilized to produce Ace Payday’s company whenever, in fact, 40% to 45per cent went along to the ISOs as product product sales commissions. The Complaint additionally alleges that defendants lured investors by guaranteeing investment that is excessive and also by baselessly projecting extremely positive earnings all the way to 720per cent per year. From the Commission’s movement, the court issued an purchase temporarily restraining defendants from breaking the antifraud and enrollment provisions regarding the federal securities rules, freezing defendants’ assets, and giving other crisis relief. A hearing regarding the Commission’s movement for a preliminary injunction is planned for April 5, 2002.

The names that are complaint defendants:

Ace Payday, a Florida liability that is limited headquartered in North Miami Beach, Florida.

Bianco, a resident of North Miami Beach, Florida, plus the executive that is chief of Payday, Ace Management, LLC, and Ace Payday Management, Inc.

Ace Management, LLC, identified when you look at the providing materials as being a Florida restricted obligation business, Ace Payday’s “Manager, ” and “a specialist wage advance and check always cashing Management Co. “

Ace Payday Management, Inc., a Florida firm identified on Ace Payday’s Florida state filings since the LLC supervisor for Ace Payday.

The Complaint alleges that:

Defendants have actually carried out the providing in the form of various written materials, that they delivered to investors that are prospective the way associated with the ISOs.

In these materials, defendants describe Ace Payday being a start-up business in the commercial of providing “retail pay day loan” and “check cashing” services, declare that check cashing is possibly ” the quickest growing industry in the us today, ” and encourage investors to “take advantageous asset of taking part in this profitable industry. ” Defendants project that the business’s pay day loan operations will produce “the average of as much as 360% revenue per 12 months” and that the organization’s check cashing operations will create “up to 720% each year. ” they feature investors (a) interest during the price of 20% per year become compensated at a consistent level of 5% each quarter for 3 years, and (b) a pro-rata share regarding the organization’s earnings. In reality, between 40% and 45% regarding the providing profits have already been utilized to pay the ISO’s, which work as unregistered agents soliciting investors that are unsophisticated. Defendants haven’t any basis for guaranteeing 20% interest payable quarterly or projecting such profits that are optimistic particularly now, as Ace Payday currently has did not satisfy its quarterly responsibilities to investors.

The Commission’s grievance charges most of the defendants with breaking the antifraud and registration conditions associated with the federal securities rules, specifically Sections 5(a), 5(c) and 17(a) for the Securities Act of 1933, Section 10(b) of this Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition to the emergency relief described above, the Complaint seeks permanent injunctions prohibiting future violations regarding the securities guidelines, disgorgement, and civil charges.

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