The Arizona Corporation Commission has ordered insurance producer, Gregory “Greg” Patrick Talbot of Phoenix, to pay $1,411,950 in restitution and $50,000 in administrative penalties for defrauding investors with a real estate Ponzi scheme.
The Commission found that in his presentations to potential investors, Mr. Talbot highlighted “alternative” investments not available through banks or “traditional” investment options, that he claimed were “low risk” and “high return.” One of the alternative investments offered to investors was a fund established by a company named Woodbridge, which was ultimately found to be a Ponzi scheme.
Additionally, the Commission found Talbot offered another alternative investment in funds controlled by a Florida company, EquiAlt, LLC. Investors were told EquiAlt, LLC was raising capital to purchase, improve, lease and dispose of distressed real property. In actuality, EquiAlt, LLC was operating as a nationwide Ponzi scheme.
The Commission found that Mr. Talbot was not authorized to sell securities in Arizona when he made multiple misrepresentations and material omissions regarding the risk and liquidity of the EquiAlt securities.