Diamond Trading Fund Was Ponzi Scheme: SEC

The Securities and Exchange Commission has obtained an
emergency court order freezing the assets of a Colorado company it says ran a
“diamond-themed” Ponzi scheme.

The SEC alleges Universal Consulting Resources raised
approximately $17 million from investors in part with a “Diamond Program”
billed as generating money from gem deals.

However, the SEC says, owner Richard Dalton used money from
newcomers to fund monthly payments to existing investors.

According to the SEC’s complaint, UCR began offering the
Diamond Program in early 2009, enticing investors with a guaranteed 10 percent
monthly return. 

The SEC says its investigation is ongoing. Dalton could not
be reached for comment at press time.

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