PARADISE VALLEY, Ariz. — The CEO of two Arizona-based financial service companies was charged by the U.S. Securities and Exchange Commission (SEC) in a $2.9 million fraud case.
CEO Gary Pryor, a resident of Paradise Valley, reportedly raised $2.9 million from investors for his two companies, ZipRemit, Inc. and Lendaily, Inc. while making false and misleading statements about his companies' revenue and business prospects, the SEC said Tuesday.
Pryor falsely told investors between 2015 and May 2019 that his two companies had several large nationally-recognized brands as customers among other claims, according to the SEC.
Pryor also allegedly diverted $1.2 million of the investor funds for his own personal use.
Some of the ways Pryor reportedly used the money included making payments on his 4,000 square foot home and spending money on luxury automobiles, lavish ski trips, and private school tuition for his children, the SEC compliant said.
The complaint calls for "permanent injunctions, civil penalties, disgorgement with prejudgment interest, and a conduct-based injunction against Pryor."
This is a developing story. Tune into 12 News for the latest information.