Scammer Used Investor Cash for Manhattan Club, Skiing, SEC Says

CEO Gary F. Pryor and his two purported point-of-sale credit entities raised $4.3 million through a fraudulent offering, then used investor funds to cover private school tuition and Colorado vacations, the SEC told a federal district court in Arizona.

Pryor, ZipRemit Inc., and Lendaily Inc., “boasted of wildly unrealistic performance projections, merchant relationships that didn’t exist, and milestones that were never achieved,” the Securities and Exchange Commission said in a complaint filed in the U.S. District Court for the District of Arizona.

The entities didn’t have a “ready-to-deploy platform for processing credit applications,” either, the complaint said. Their software “was ...