The US Securities and Exchange Commission have been awarded an order in favor of seizure of all assets of Gregory McKnight and Legisi Holdings LLC, his investment company. McKnight was under investigation for sometime by the commission for misusing $72 Million of investor money.
McKnight, it alleged, invited investments online through his website legisi.com. Investors were promised as much as 15% monthly in return for their investments. They were told the funds would be invested in foreign exchange, real estate, futures, and stock.
It is now alleged that he invested only $33 Million of the investor money. $27.5 Million of the rest is now assumed to have been used to payback returns to early investors in the manner of ponzi scams. He is also said to have misappropriated $2.2 Million to cover personal expenses and to doling out payments to near-and-dear relatives.
This would affect more than 3000 investors in the US and some 30-odd foreign countries. The freeze order would be applicable to other companies associated with McKnight like Legisi Marketing, Lido Consulting, HBN, and Lindenwood.
Merri Jo Gillette, Regional Director of the SEC’s Chicago Regional Office rounded off the company succinctly:
“Zavvi Entertainment Ltd have no involvement with this website. Due to copyright laws we have had to remove this website.”
Zavvi Entertainment Ltd, a popular chain of retail stores, had received calls from the website’s customers anxious about the fate of their orders. They had purchased the game from zavvidirect thinking it was affiliated to the famous retail chain. Zavvi Entertainment Ltd initiated legal proceedings against Zavvi Direct Ltd, and also arranged for their dubious website to be shut down.