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Commission Finds Mesa Man Defrauded Investors with Ponzi Scheme Involving Real Estate
The Corporation Commission ordered respondents Timothy La Duca of Mesa and his affiliated company, Marketing Dynamics, Inc., to pay $84,216 in restitution and a $20,000 administrative penalty for defrauding investors with a real estate Ponzi scheme.
The Corporation Commission found the respondents offered and sold securities, notes issued by companies controlled by EquiAlt, LLC, to at least 22 investors, many of whom had no investment experience. As a result, the Commission found many of the investors are now struggling financially, living month-to-month.
The Corporation Commission found respondents La Duca and his affiliated company represented EquiAlt was raising capital to purchase, improve, lease and dispose of
distressed real property when in actuality, EquiAlt was allegedly operating as a nationwide Ponzi scheme. The Commission found respondents made material misrepresentations and omissions to investors regarding the risk and liquidity of the securities during the offering or sale of the securities. La Duca and Marketing Dynamics, Inc. were not registered to offer or sell securities in Arizona.
In settling this matter, the respondents admit only for the purpose of this proceeding and agrees to the entry of the consent order.
All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21164A-21-0321.