Plus Money, Inc. and Matthew La Madrid, et al.

On April 30, 2008, the SEC obtained a temporary restraining order and asset freeze against Matthew La Madrid and his investment adviser firm, Plus Money, Inc. According to the complaint, since at least May 2004, the defendants managed hedge funds (the Premium Return Funds) that fraudulently raised approximately $30 million from at least 300 investors by promising investor monies would be used in an investment strategy solely focused on the buying and selling of covered calls. The complaint further alleged that in November 2007, the defendants transferred nearly all of the funds from the Premium Return Funds to an entity controlled by La Madrid (Vision Quest Investments) of which $10 million was transferred to the Palladium Holding Company to conduct a different investment strategy. The SEC alleged the defendants never told investors about the transfer or the change in investment strategy.

In its complaint, the SEC named numerous companies and one individual as relief defendants claiming they received significant amounts of investor monies from the defendants.

For more information about the SEC’s action, you can read Litigation Release No. 20554 (May 5, 2008) and 20587 (May 19, 2008).

The Court also appointed Stephen J. Donell as Receiver over Plus Money, Inc. and some of the relief defendants. For the latest information about the Receivership, you can visit the Receiver’s website.