Walkersville man accused of $9.2 million Ponzi scheme

Civil complaint alleges Parrish took $780,000 for himself

March 10, 2011|By Gus G. Sentementes, The Baltimore Sun

The Securities and Exchange Commission this week filed a civil complaint in U.S. District Court in Denver against a Walkersville man, alleging that he operated a $9.2 million Ponzi scheme that defrauded 70 investors in three states.

The SEC said that Larry Michael Parrish, who operated a company called IV Capital, solicited investments from investors and promised them returns of at least 2.5 percent a month, or 30 percent a year, from 2005 to 2009. The SEC, which described Parrish as a repeat offender, accused him of using money from later investors to pay off earlier investors and of "misappropriating" at least $780,000 for himself.

In what the SEC called an "egregious" case, the complaint said a Colorado man dying of cancer invested his and his wife's life savings with Parrish, who visited the couple in the hospital in Colorado. Parrish promised the dying man that his wife would be provided for, but the couple's money is now gone, the complaint said. The complaint added that the woman is in danger of losing her home and has had to return to work after retiring.

gus.sentementes@baltimoresun.com

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