AIC Chief Ran $7.7M Ponzi Scheme: SEC

Law360, New York (April 18, 2011, 5:31 PM EDT) -- Securities regulators on Monday hit a Richmond, Va., man with a civil suit in Tennessee federal court claiming he hawked stock and debt for his holding company AIC Inc., promising fat returns, but was operating a $7.7 million Ponzi scheme.

The U.S. Securities and Exchanges Commission's suit claims AIC CEO Nicholas D. Skaltsounis and two other AIC principals fibbed to their marks about their company's ability to pay back interest and dividends ranging from 9 to 12.5 percent on promissory notes and preferred stock.

"AIC and...
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