SEC Accuses The Income Store Of Being A “Ponzi-Like Scheme”

The Securities and Exchange Commission (SEC) announced that it obtained a temporary restraining order and filed an emergency enforcement action against Kenneth D. Courtright III and his company, Todays Growth Consultant Inc.

The actions by the SEC are related to an alleged “Ponzi-like scheme” that raised more than $75 million from over 500 investors.

The Income Store Promised High Returns

The SEC’s complaint, unsealed Jan 14, 2020, states that Courtright and Todays Growth Consultant Inc. (TGC), which also did business under the name “The Income Store”, promised investors high rates of return from revenues from websites.

TGC told investors that it would use their investment money to buy or build them a website, then develop and market it to generate income for them. The SEC alleges that TGC promised to use investor’s money only for expenses for their website, but was actually making unlicensed securities offerings, and using new investor’s money to pay old investors, and to pay for Courtright’s mortgage and private school tuition for his family.

Ponzi Scheme Allegations

Using new investor’s money to pay returns to other investors is the hallmark of a Ponzi scheme, named for the infamous 1920s con artist. Bernie Madoff’s $50 billion Ponzi scheme, revealed in 2008, is the biggest of all time.

The SEC’s complaint states that TGC operated from at least 2017 through October, 2019.

Antonia Chion, Associate Director in SEC’s Division of Enforcement, said “TGC and Courtright’s alleged fraud promised a guaranteed return when the company’s business model and financial condition could not possibly support it.”

Courtright and TGC are charged with violations of the antifraud and registration provisions of the federal securities laws. The SEC is seeking the return of ill-gotten gains with interest and civil penalties. In addition to the temporary restraining order, emergency relief, and asset freeze, the Court has also appointed a receiver for TGC.

Silver Law Group Experienced With Ponzi Schemes

Silver Law Group’s managing partner Scott Silver, a leading investment fraud attorney, recently spoke to The New York Times for an article on Ponzi Schemes. The article talks about post-Madoff Ponzi schemes, including an alleged scheme run by Christopher Parris and Perry Santillo, whose victims Scott Silver has assisted.

Silver Law Group represents investors in FINRA arbitration claims against broker-dealers who sold private placements in GPB Capital Holdings, which raised $1.8 billion and has been accused of being a Ponzi scheme.

Are You A Victim Of A Ponzi Scheme?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct and Ponzi schemes.

Silver Law Group also serves as counsel to corporate monitors and securities receivers. If you have any questions about recovering your investment losses, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.