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Arizona guy indicted on fees of defrauding investors in pay day loan scam via Scottsdale organizations

A Paradise Valley guy running through a few Scottsdale-based organizations happens to be accused false statements to investors in a purported payday-loan company scheme and diverting a lot of raised from investors his very own “lavish life style.”

A grand jury in U.S. District Count in Phoenix indicted David Allen Harbour of 22 felony counts of cable fraudulence and cash laundering, alleging he defrauded investors in Arizona as well as other states of $2.9 million from 2010 to 2015 by way of a scheme to increase pay day loans to small enterprises.

The indictment had been filed July 30 and released towards the news Thursday.

Harbour, 46, ended up being arrested Monday in Paradise Valley. Their lawyer don’t react to demands for remark. Harbour has pleaded not liable costs. He could face numerous years in prison. A trial is planned to start out Oct. 1.

The research ended up being spearheaded by the irs and FBI.

Harbour additionally reached a settlement aided by the Securities and Exchange Commission year that is last fees he made false claims to upscale investors to invest in a indigenous American financing company which was under development.

That matter, contribute to azcentral.com for lots more tales. Work sale: $1 for 3 months day.

Promises of high returns

In line with the jury that is grand, Harbour “misrepresented just about any product aspect of the purported investment possibilities,” including their history and experience, the money going to the opportunities, your order that repayments will be gotten from borrowers together with assured price of return.

“Investors were falsely told their funds is utilized just as short-term loans to tiny and start-up companies,” the indictment stated.

Pay day loans are short-term loans with a high . Harbour promised returns of 20% and much more to investors that are potential reported the loans weren’t dangerous since they were extended up to a quantity of companies, based on the indictment.

Luxurious product sales presentations

Harbour allegedly used much of the amount of money to guide a lifestyle that included extravagant events, golf-resort subscriptions and travel on personal chartered jets, in line with the grand jury declaration.

He additionally invested investor funds on individual credit-card and home loan repayments, and paid some earlier in the day investors with funds gathered from subsequent investors.

In line with the costs, Harbour made presentations to investors at luxury tennis courses when you look at the Scottsdale area, in a Skybox at Arizona State University soccer games, at a field from the sixteenth gap for the spend Management Phoenix Open, in addition to at resorts in Palm Springs, Cabo San Lucas, Mexico, and Harrison, Idaho.

Harbour’s organizations included Highpointe Capital Group, Nautical Holdings and DCR Hospital Investment, all positioned at 21020 N. Pima Rd. in Scottsdale.