UPDATE: Why its important to run a Google search on anyone you want to invest with.

UPDATE:   On November 3rd Marc Jenson was sentenced to back-to-back, zero-to-five-year prison terms for failing to pay restitution to investors pursuant to the restitution order in his first fraud conviction involving a bicycle company.  Judge Reese had given him three years to pay $4.1 million in restitution, but according to prosecutors Jenson moved to California and used up all of the money to fund his lavish lifestyle.  According to prosecutors from the attorney General’s Office, Jenson “went through $9 million, none directed to the victims in this case.”

According to the Salt Lake Tribune, Judge Reese said he based his sentencing decision on “Jenson’s failure to pay the men back on his conviction years earlier for failure to pay federal income tax and a ‘pattern of you raising money, making promises and not repaying [people].'”  This City Weekly Article contains a lot of interesting detail about the hearing, and in particular how Mr. Jenson spent the $9 million he raised over the past few years, including “a sports car worth more than $150,000, an extended stay at a Laguna Beach residence costing $360,000 up front for the rental agreement, followed by a nine-month stay at the Pelican Hills Resort in California costing over $500,000.”  he also spent some of his investor’s money on something (or someone) called “Russian Wow Girls.”

The case discussed below, involving the Mount Holly Club, is a separate case and has not been resolved yet.  That case could well result in more prison time for Mr. Jenson. Continue reading “UPDATE: Why its important to run a Google search on anyone you want to invest with.”