The SEC filed an emergency action in federal court and obtained an asset freeze against Matthew E. White, Rodney A. Zehner, and Daniel J. Merandi who allegedly fraudulently issued $1 billion in unsecured corporate bonds out of a shell company they own and claimed invested money would be used to fund a resort project. In fact, they never came close to raising the funds necessary to start the project. In the meantime, they pocketed the $5.6 million in investor funds they had raised and used it for personal purchases at Saks Fifth Avenue, Gucci, Louis Vuitton, Prada, and Versace. SEC
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