Ponzi Tracker Reports: “Habitual Fraudster” Gets 9-Year Sentence For $9.2 Million Ponzi Scheme

A Colorado man dubbed a “habitual fraudster” by the Securities and Exchange Commission learned he will spend the next nine years in prison for masterminding a $9.2 million Ponzi scheme.  Larry Michael Parrish, aka Michael Parrish, received the sentence after previously pleading guilty to a single count of wire fraud last May.  In addition to the prison sentence, Parrish was also ordered to pay $4 million in restitution to his defrauded victims.

Parrish operated IV Capital Ltd. (“IV Capital”) from November 2005 to October 2009.  Parrish held out IV Capital as an investment and trading company, telling potential victims that the company had more than $20 million under management, guaranteed monthly profits of at least 2.5%, and that professional third parties would evaluate the company’s accounts.  Based on these and other representations, Parrish and IV Capital raised more than $9.2 million from investors.

However, of the funds raised, less than $3 million were actually used for trading by Parrish.  Contrary to the consistent track record painted by Parrish, nearly all of those funds were lost in risky trading.  More than $5 million was used to make “profit” payments to investors, with the remainder being used by Parrish for a plethora of unauthorized personal expenses that included luxury vacations, entertainment and travel, golf outings, and a Harley Davidson motorcycle.

Of note, Parrish had previously been the subject of an enforcement action by the Securities and Exchange Commission in which he was subject to a bar order prohibiting him from future violations of securities laws.  Some investors even found out about this after an internet search, but were convinced by Parrish that he was not the same Larry Michael Parrish named in the previous action.

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