Gregory McKnight of Legisi Holdings Indicted

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It’s been a hell long since Legisi Investments ain’t it?

Gregory McKnight of Legisi Holdings has been indicted. I still remember the snobbish man when he was email interviewed by me. *And luckily for me and us, he was snobbish so I didn’t really follow up.

Thanks to okosh of NN for the update,

Securities and Exchange Commission v McKnight

Plaintiff: Securities and Exchange Commission
Defendant: Gregory N McKnight, Legisi Holdings, LLC, Legisi Marketing, Incorporated, LIDO Consulting, LLC, Healthy Body Nutraceuticals, Lindenwood Enterprises, LLC, Danielle Burton, Theresa Burton and Jennifer McKnight
Receiver: Robert D Gordon

Case Number: 4:2008cv11887
Filed: May 5, 2008 coming from Justia dockets

Not too sure whether the SEC needs more victim reports on this one, but Legisi itself should have many groups that are crawling on Greg’s back right now. Here’s another SEC Report on Greg scamming over 72 Million USD$ from investors around the world.

The SEC’s complaint, filed May 5, 2008, alleged that McKnight and Legisi Holdings conducted a fraudulent, unregistered offering of securities in which, between December 2005 and at least November 2007, they raised approximately $72 million from more than 3,000 investors in all 50 states and several foreign countries through the Legisi website at www.legisi.com. According to the SEC’s complaint, McKnight represented that he would invest the offering proceeds in foreign currencies, commodity futures, stocks and real estate and promised to pay interest of as much as 15 percent per month from the profits from his investments. The SEC’s complaint further alleges that throughout the period of the offering, McKnight represented to investors that his investments were profitable and were generating the promised returns. The complaint charges that, contrary to these representations, McKnight invested only approximately $33 million of the offering proceeds and that, rather than earning profits, these investments resulted in millions of dollars in losses. The SEC’s complaint further charges that Defendants used approximately $27.5 million of the offering proceeds to make payments of purported profits to prior investors and were, thus, operating a Ponzi scheme, and that McKnight used $2.2 million of investor funds to pay for his personal expenses and to make payments to his relatives, Jennifer McKnight, Danielle Burton, and Theresa Burton. The SEC’s complaint charges that Defendants violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

Read it here (Credits to Mark Herpel, DGC Magazine)

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