The Securities and Exchange Commission (SEC) has charged Pedram Abraham Mehrian and two companies he controlled with allegations of conducting a multi-year Ponzi-like scheme. The SEC claims that Mehrian misled investors who purchased $17.5 million in promissory notes.
The SEC claims that Mehrian and two companies he controlled, Strategic Legacy Investment Group, Inc. and SLIG High-Interest Liquid Savings Company, raised money from investors while representing “guaranteed interest” better than what was available at banks. The SEC’s complaint states investors were offered rates as high as 9%.
Mehrian allegedly represented to investors the notes were “safe” and “secure” because they were “backed” and “collateralized” by Strategic Legacy’s “portfolio of assets” and were “recession-proof.”
The reality was different, according to the SEC, as the defendants made Ponzi like payments to cover losses while providing false statements of growing balances. By the end of 202o, there were insufficient funds to cover redemption requests.
The complaint seeks a conduct-based injunction and an officer and director bar against Mehrian, and injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant.