Fraud and Scam News

Photo by: Bill in Ash Vegas

The US Securities and Exchange Commission has been awarded an order in favor of seizure of all assets of Gregory McKnight and Legisi Holdings LLC, his investment company. McKnight was under investigation for sometime by the commission for misusing $72 Million of investor money.

McKnight, it alleged, invited investments online through his website legisi.com. Investors were promised as much as 15% monthly in return for their investments. They were told the funds would be invested in foreign exchange, real estate, futures, and stock.

It is now alleged that he invested only $33 Million of the investor money. $27.5 Million of the rest is now assumed to have been used to payback returns to early investors in the manner of ponzi scams. He is also said to have misappropriated $2.2 Million to cover personal expenses and to doling out payments to near-and-dear relatives.

This would affect more than 3000 investors in the US and some 30-odd foreign countries. The freeze order would be applicable to other companies associated with McKnight like Legisi Marketing, Lido Consulting, HBN, and Lindenwood.

Merri Jo Gillette, Regional Director of the SEC’s Chicago Regional Office rounded off the company succinctly:

“As alleged in our complaint, McKnight lured investors from around the globe into investing by claiming on his Web site that the Legisi program was legitimate and unlike other ’scams’ and ‘high yield investment programs’ that you see on the Internet. In fact, McKnight’s Legisi program was just that, a scam from beginning to end!”

Hopefully, the seizure would help realize enough money to payback those who invested with the company. This would ensure there are no victims to this scam.

Source: US SEC Press Release

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