Unregistered N.J. Advisor Charged With Operating Ponzi Scheme
A New Jersey unregistered investment advisor, who was charged in the past for violating securities regulations, has been charged, both civilly and criminally, with operating a $2.8 million Ponzi scheme.
Mark Marchi of Point Pleasant Beach, N.J., was the founder and owner of Precipio Capital. Between February 2016 and September 2020 he solicited $2.8 million from 22 investors by lying about the performance record of Precipio. He used new investments to pay earlier investors and also diverted funds to his personal accounts, according to a civil complaint filed by the SEC that charges him with fraud.
He also has been charged criminally with fraud by the U.S. Attorney for the District of New Jersey.
Without admitting or denying guilt, Marchi agreed to a settlement with the SEC that bars him from acting as an officer or director of any securities company and bars him from securities trading for anyone other than himself. The SEC complaint asks for disgorgement of the ill-gotten gains. The settlement leaves the amount to be paid up to the court.
In carrying out the fraud, the SEC complaint said, Marchi used about $451,000 of the more than $2.8 million he collected for trading. In addition, Marchi’s trading yielded a net loss of about $161,022, and $275,500 was ever transferred from…