SEC Charges Arizona Man with Making False Statements and Stealing $1.5 Million from Investors
The Securities and Exchange Commission has charged David A. Harbour of Scottsdale, Arizona with making misrepresentations to investors and misappropriating more than $1.5 million in investor funds to finance his personal lifestyle and pay off his debts.
The Securities and Exchange Commission has charged David A. Harbour of Scottsdale, Arizona with making misrepresentations to investors and misappropriating more than $1.5 million in investor funds to finance his personal lifestyle and pay off his debts.
According to the SEC’s complaint, between July 2014 and August 2016, Harbour raised money from friends and business acquaintances by representing to them that their funds would be used to finance various businesses, including an American Indian business entity engaged in high-interest installment lending to consumers.
The SEC alleges that Harbour told the investors he would use their money exclusively for revenue-generating businesses, and promised them annual returns, ranging from 12 percent to 20 percent.
Instead, the SEC alleges, he diverted substantial portions of the invested funds for personal purposes that included paying off hundreds of thousands of dollars in personal credit card expenses, such as expenses for private jets, cruises, stays at resorts, and a payment to a Beverly Hills plastic surgeon.
Harbour also allegedly used the investor money to make payments on personal loans and debts he owed to investors in prior business ventures. Harbour ultimately misappropriated $1.5 million of the money raised from the four investors.
Without admitting or denying the allegations, Harbour agreed to pay a total of $3.2 million, consisting of disgorgement of $1.5 million plus prejudgment interest of $97,000, and a penalty of $1.5 million. Harbour also agreed to be enjoined from future securities law violations.
