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Utah-based Jersey Consulting allegedly sold more than $6 million in unregistered securities and spent investor funds on a motorcycle, Victoria’s Secret merchandise, and online dating services, the SEC said.
Jersey Consulting LLC, its principal, and its solicitors sold unregistered securities and spent investor funds on a wide variety of personal purchases, according to a Feb. 20 Securities and Exchange Commission complaint in the U.S. District Court for the District of Utah that was unsealed March 5.
Marc Andrew Tager, Jersey Consulting’s principal, allegedly told investors the company had a uniquely profitable mining process, and an 80-acre Bureau of Land Management claim on which to use it, and just needed investor money to fund its operations.
The company actually had no BLM claim, no commercially viable mining technology, and no revenue, according to the complaint. Instead, investor funds allegedly went to personal expenses and Ponzi scheme repayments to earlier investors.
Multiple people had access to investor funds in Jersey Consulting’s accounts through debit cards and signed blank company checks, the complaint said. Those people allegedly used investor funds to pay for a Harley-Davidson motorcycle, vaping products, clothing from Victoria’s Secret, online dating services, Netflix, fantasy sports leagues, tanning, and school pictures and cheerleading fees for Tager’s children.
Jersey Consulting didn’t immediately respond to a request for comment. Attorneys for Tager and the company couldn’t be identified for comment.
The U.S. Attorney’s Office for the District of Utah Feb. 15 indicted Tager and several of Jersey Consulting’s solicitors for securities fraud after a parallel investigation.
Tager pled guilty to conspiracy to commit mail fraud in 2005. A Jersey Consulting solicitor pled guilty to conspiracy to commit mail fraud, wire fraud, and securities fraud in 2014. Another pled guilty to conspiracy to deal in counterfeit currency in 2006. The SEC previously enjoined several Jersey Consulting solicitors from violating securities laws and barred one from associating with any broker, dealer, or investment adviser.
The cases are SEC v. Jersey Consulting LLC , D. Utah, No. 2:18-cv-00155, complaint filed 2/20/18 and United States v. Tager , D. Utah, No. 2:18-cr-00097, complaint filed 2/15/18 .
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