The U.S. Securities and Exchange Commission has sued 48-year-old Paul Marshall in the Northern District of Georgia Atlanta Division Court alleging that he has misappropriated about $2 million from clients, some of whom were elderly.
The commission’s complaint states that Marshall, who is the majority owner of two Atlanta-based companies, FOGFuels and Bridge Entities LLC, violated the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.
Marshall reportedly worked as an investment adviser from 1989 to January 2011 and set up his two companies in 2010 and 2011.
Money he acquired through the alleged fake investments went toward child support, alimony, private school tuition, children’s camps, luxury vacations and to pay back a former client, officials said. The false investments reportedly occurred between February 2011 and as recently as July.
He is accused of sending his clients falsified account statements that showed non-existent investments.
On Wednesday, U.S. District Judge Timothy Batten Sr. granted the federal commission’s request for emergency relief, issuing an order temporarily restraining Marshall and his two companies for these violations.
Batten also ordered that Marshall’s assets be frozen, preventing the destruction of documents, requiring an accounting and expediting further discovery of more evidence. The SEC’s complaint also seeks a permanent injunction, the return of ill-gotten gains with interest and civil penalties.
A hearing has been set for Friday on the SEC’s request for a permanent injunction.