"Individuals and entities have invested more than $345 million with Defendants based on the misrepresentations, omissions, and deceptive conduct alleged herein," said the SEC complaint. "Approximately $197 million has been repaid to investors, in the form of remittances on purported collections,purported profits from flips, interest payments, or redemptions. Thus, out of the $345 million initially invested, investors are still owed at least $148 million in principal,"
 

In a parallel action, the U.S. Attorney's Office for the District of Maryland today announced criminal charges against Merrill, Ledford and Jezierski.

The SEC's complaint, filed on Sept. 13 in federal district court in Maryland, charges Merrill, Ledford, and Jezierski, along with their entities—Global Credit Recovery, LLC, Delmarva Capital, LLC, Rhino Capital Holdings, LLC, Rhino Capital Group, LLC, DeVille Asset Management LTD, and Riverwalk Financial Corporation—with violations of the antifraud provisions of the federal securities laws. The court granted the SEC's request for an asset freeze, temporary restraining order and the appointment of a receiver. The SEC seeks disgorgement of allegedly ill-gotten gains and prejudgment interest, and financial penalties against the defendants.