SECURITIES AND TRADE COMMISSION SEC BRINGS CRISIS ENFORCEMENT ACTION AGAINST SOUTH 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. March 19, 2002)

Today, the Commission filed a crisis 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 offering “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 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% regarding the providing profits will be utilized to produce Ace Payday’s company whenever, in fact, 40% to 45% 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 as high as 720per cent each year. The court issued an order temporarily restraining defendants from violating the antifraud and registration provisions of the federal securities laws, freezing defendants’ assets, and granting other emergency relief on the Commission’s motion. A hearing in the Commission’s movement for the preliminary injunction is planned for April 5, 2002.

The Complaint names as 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 leader of Ace Payday, Ace Management, LLC, and Ace Payday Management, Inc.

Ace Management, LLC, identified into the providing materials as a Florida liability that is limited, Ace Payday’s “Manager, ” and “a specialist pay day loan and check always cashing Management Co. “

Ace Payday Management, Inc., why not try these out a Florida organization 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 by way of different written materials, that they provided for potential investors at the direction for the ISOs.

Within these materials, defendants describe Ace Payday being a start-up business in the industry of providing “retail pay day loan” and “check cashing” services, claim that check cashing is possibly ” the quickest growing industry in the usa today, ” and encourage investors to “take benefit of playing this lucrative industry. ” Defendants task that the business’s pay day loan operations will produce “the average of up to 360% revenue per and therefore the business’s check cashing operations will create “up to 720percent per 12 months. Year” They offer investors (a) interest in the rate of 20% per year become compensated for a price of 5% each quarter for 36 months, and b that is( a pro-rata share for the organization’s earnings. In reality, between 40% and 45% regarding the providing profits have now been utilized to pay the ISO’s, which work as unregistered agents soliciting unsophisticated investors. Defendants don’t have any basis for guaranteeing 20% interest payable quarterly or projecting such profits that are optimistic particularly now, as Ace Payday currently has neglected to fulfill its quarterly responsibilities to investors.

The Commission’s grievance charges all the defendants with breaking the antifraud and enrollment conditions for the federal securities laws and regulations, specifically Sections 5(a), 5(c) and 17(a) for the Securities Act of 1933, Section 10(b) associated with the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Aside from the emergency relief described above, the Complaint seeks permanent injunctions prohibiting future violations associated with securities guidelines, disgorgement, and civil charges.

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