According to the Securities and Exchange Commission, Marco “Sully” Perez of Midland, Texas, used to tell his clients that his investment scheme was better than a 401(k).
Now the U.S. District Court in Western Texas has ordered the entire operation halted and any remaining assets frozen. The SEC says the investment plan was a “sham” and a Ponzi scheme. Perez blew millions of dollars of his investors’ retirement money living high on the hog, and most of the money is gone, the SEC says. That included over $1 million spent on new cars, $300,000 on jewelry, $450,000 flying around on private airplanes, and $110,000 holding his wedding reception aboard the Queen Mary cruise ship. All during a period of just over three years.
During that time Perez also gambled away more than $200,000 at casinos, made cash withdrawals totaling more than $600,000, and spent huge sums of money on everything from a helicopter to the Dallas Cowboys, says the SEC.
The total alleged spree came to about $5.6 million, or more than $4,400 every day, including Sundays. That was nearly two-thirds of the money invested with him, the SEC says.
Permian Basin Proppants Inc., a company that Perez controls as president and used to carry out the scheme, was also charged, the SEC said.
Meanwhile, the Commission reports, the entire scheme was bogus. “Permian was and is…