On September 15, 2015 the SEC charged five Arizona residents with stealing millions of dollars from investors to make car payments, buy clothes, and fund travel and entertainment at luxury resorts, casinos, and strip clubs.
The SEC alleges that Jason Mogler of Pangea Investments misappropriated over $17 million from investors who were told the funds would be used to acquire and develop Mexican beachfront property, a recycling complex, and distressed real estate. Instead, the complaint alleges that Jason Mogler referred to, and used the funds as his “personal candy store.”
They complaint alleges that they repeatedly lied about the purported progress of the investments to calm investors as time extended past when their promissory notes should have been repaid. In certain instances they made Ponzi-like payments to investors threatening them with lawsuits by using money from new investors, which Jason Mogler termed “robbing Peter to pay Paul.”