Ex-Marine Raised $2.5 Million in Loan Ponzi Scheme, SEC Says

A former Marine defrauded investors through companies that purported to offer short-term real estate-focused loans to borrowers, raising more than $2.5 million from 24 investors, the SEC alleges.

Christopher Aubin and his businesses, Anchor State Capital LLC and Anchor State Properties LLC, “made very few real loans to borrowers,” the Securities and Exchange Commission says. The commission filed its suit Thursday in the US District Court for the District of Massachusetts.

Instead, the companies used incoming funds to pay earlier investors in Ponzi-like fashion and to cover the personal expenses of Aubin, 30, and Ashley Corcoran, 27, with whom he ...