The Securities and Exchange Commission filed a lawsuit Monday against an El Segundo investment firm, accusing its owner of operating a $23-million Ponzi scheme that targeted Latino investors from seven states.
Clelia A. Flores and her company, Maximum Return Investments Inc., attracted about 150 investors from 2006 to 2008 by offering returns of 25% a month, the lawsuit alleged.
Instead of profiting in real estate, banking, and oil, silver and gold exploration as she promised, Flores used money from new investors to make "interest" payments to old investors, the lawsuit said.
The lawsuit accused Flores of diverting $3.5 million for personal use, including a $443,000 down payment on a $1.9-million home in El Segundo. She also used investor money to pay for a lavish party at the Ritz-Carlton hotel in Marina del Rey, the SEC alleged. The catered party included a rented boat and free hotel rooms for guests and was intended to celebrate the company's "alleged success," according to the SEC. READ FULL STORY
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