The SEC allegation states that Stanley utilized approximately $1.3 million of the Lifepay offering proceeds for personal expenses. The most compelling evidence indicates expenses included lavish travel and entertainment expenses, along with country club memberships and other related personal expenses. Further complicating the situation, Watts and Stanley allegedly engaged in shell game transactions that facilitated and legitimized the use of personal expenses.
SEC Investor Education and Advocacy
“As the U.S. population ages, financial exploitation of seniors is an increasing and serious problem. It is a Commission priority to protect senior investors through our enforcement and examination programs, and we encourage senior investors and their loved ones to use the resources available on the Commission’s website to help identify risks and red flags.” – Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office.
The SEC’s Office of Investor Education and Advocacy (OIEA) provides investor alerts. The alerts assist senior citizens in identifying Ponzi schemes and risky schemes promising high investment returns with little-to-no risk. Additionally, the SEC recommends that seniors utilize the free search tool on Investor.gov to verify whether an investment professional is licensed and registered.
