A Colorado man promised investors high profits from diamonds and diamond investments in a massive million dollar diamond scam. The United States Securities and Exchange Commission (SEC) has now obtained an emergency court order to freeze the assets of the scammer, Richard Dalton, as an investigation commences.
A federal judge in the US District Court for the District of Colorado has granted SEC an order to freeze not only Dalton’s assets, but also the assets of Dalton’s wife, Marie.
The SEC accused Dalton of raising a total of $17 million from 130 investors from March 2007 to June 2010 by promising returns of between 48-60% percent per year from a program referred to as the “Trading Program” and 60-120% per year in a program referred to as the “Diamond Program”.
Dalton paid investors in both programs monthly “returns” which were, in fact, paid from monies offered by new investors. According to the SEC’s allegations, Dalton, and his company UCR deceived investors into believing that the diamond investment program would generate high returns from the trading of rough or polished
diamonds.
After being duped by Dalton’s initial payments, many investors were so pleased with their so-called returns that they took out money from their Individual Retirement Counts to add to their investments with Dalton. Investors from a total of 13 states fell victim to the scheme, claims the SEC in their lawsuit.
SEC also alleges that Dalton paid for personal expenses, pocketing investor’s money to upgrade his lifestyle. With no other employment or source of income, Dalton withdrew millions of dollars from UCR accounts to fund the purchase of his car, his house and his daughter’s wedding.
The SEP is seeking permanent injunctions, hoping that Dalton will not only pay back the stolen money to all of his victims, but also incur financial penalties and interest.
