Wayne L. Palmer and his firm, National Note of Utah, LC, West Jordan, Utah, have been issued a temporary restraining order and have had their asset frozen by The Securities and Exchange Commission for allegedly operating a real estate-based Ponzi scheme that bilked $100 million from investors nationwide.
The SEC’s complaint states that Palmer told investors that their money would be used to buy mortgage notes and real estate assets, or to make real estate loans. More than 600 individuals invested, lured by promises of annual returns of 12 percent, the SEC alleged.
Palmer told investors that their money would be completely secure and that National Note had a perfect record, having never missed paying principal or interest on its promissory notes. Glossy marketing materials that Palmer provided to some investors showed that National Note returns did not fluctuate and stated that investors were guaranteed payment even if property owners missed payment on mortgage loans that National Note held.
Contrary to Palmer’s claims, National Note used most of the money it took in from new investors to pay earlier investors, making it a classic Ponzi scheme, the SEC alleged. It said that since 2009, National Note would not have been able survive but for the influx of new investor funds, and that its payments to investors all but stopped in October 2011. According to the SEC’s complaint, Palmer reassured investors that the money would be forthcoming, and continued to solicit new investors in National Note without disclosing the fact that it is delinquent in making payments to existing investors.
The SEC’s complaint charges National Note and Palmer with violating the anti-fraud and securities registration provisions of U.S. securities laws. Palmer also faces charges that he operated as an unregistered broker-dealer.
“Palmer promised double-digit returns at his real estate seminars, where investors learned the hard way about his lies and deceit,” said Kenneth Israel, Director of the SEC’s Salt Lake City Regional Office.
Scott Frost, Paul Feindt, Matthew Himes and Alison Okinaka of the SEC’s Salt Lake Regional Office conducted the investigation; Thomas Melton will lead the litigation.
June 8, 2016: Criminal Trial Set. At a hearing today, the judge overseeing the criminal trial of Wayne Palmer and Julieann Palmer Martin set a three-week trial starting May 1, 2017.
February 26, 2018: Criminal Trial Date Set. At a hearing on February 26, 2018, the federal judge rejected the plea agreements of Wayne Palmer and Julieann Palmer Martin. The judge set a firm trial date, to begin with jury selection on September 14, 2018. The judge scheduled three weeks for the trial.
He took a mortgage buying seminar from me in the late 1990’s. He couldn’t follow the advanced material and actually fell asleep in class! If I’d known he was a Ponzi Criminal he would not have been given entry.
The Waynaciac ……. Coming Soon to Odgen Utah !!!