A default order against David Miller, Jayson Papa and their affiliated companies has been issued by the Arizona Corporation Commission for defrauding investors with a million-dollar promissory note scheme.
Miller, Papa and their affiliated companies were ordered to pay, jointly and severally, a $100,000 administrative penalty with each owing varying restitution amounts totaling $992,980.
The Commission found that Miller and Papa were the owners of Meroe Capital Group, Ltd, Castle International, Inc. and Castle Air Holdings, Inc. The Commission also found Miller, Papa and their affiliated companies falsely represented Meroe and Miller as operating a Wall Street firm when Meroe was actually a one-man operation in Scottsdale with a virtual office in New York. The Commission found respondents fraudulently sold promissory notes to 11 investors, totaling $1,119,425. Investors have received a total of $259,445 in repayments.
The Commission found that the Miller and Papa induced people to invest by touting the investments as safe, risk-free with a guaranty without providing any financial documents necessary to assess these claims and without disclosing any of the risks of financial loss. Respondents failed to inform later investors that most of the previous investors had received, at most, a fraction of the promised payments of interest or principal.