LDS Church Members Allegedly Targeted in Promissory Note Scam
Joseph A. Nelson, along with several others, has been accused of having a part in a Ponzi scheme that took millions from investors. Nelson, who has served The Church of Jesus Christ of Latter-Day Saints as a stake high councilor and ward mission leader, allegedly targeted church members in the scam that ran from 2005 to 2010.
According to officials, Nelson and his co-conspirators allegedly offered promissory note investments through his companies that would quickly net returns of up to 200%. Nelson allegedly claimed he would be able to do this by purchasing certain merchant portfolios and then selling those portfolios after holding them for a period.
Unfortunately, the Securities and Exchange Commission (SEC) has claimed that Nelson did not use investors' cash for this purpose, and they also claim that Nelson had not purchased any merchant portfolios during that time. Nelson is also accused of fabricating documents with false information to keep up the appearance of legitimacy to investors, as well as using his status with the church to put investors at ease.
Although the case is becoming more and more complicated as other people and companies are pulled in to the investigation, it is believed that the money from investors was used to both pay off earlier investors and fund the alleged fraudsters' lavish lifestyles in classic Ponzi scheme fashion.
The investment fraud attorneys with Meyer Wilson represent investors nationwide who have lost money to Ponzi schemes, promissory note fraud, and other investment scams. We have helped hundreds investors recover their losses, and we look forward to working with you.