The SEC seized the assets and brought fraud charges against American Pension Services Inc., Riverton, Utah, and founder Curtis L. DeYoung for improper use of IRA assets, according to a federal complaint unsealed Tuesday.
The Securities and Exchange Commission complaint filed in U.S. District Court in Salt Lake City alleges that Mr. DeYoung engaged in “a long-standing fraudulent scheme” since at least 2005 to solicit people interested in less traditional investment options to open self-directed individual retirement accounts, where he served as a third-party administrator.
According to the SEC complaint, Mr. DeYoung used more than $22 million of the IRA assets to make riskier investments for himself and friends, but provided the account holders with inflated statements and continued to collect fees on the accounts. When questioned by the SEC about the discrepancies, Mr. DeYoung refused to answer, according to court the complaint.
American Pension Services is now under court-ordered receivership to protect remaining assets. A hearing in the SEC complaint is tentatively scheduled for May 9.
A recording at the offices of American Pension Services refers callers to the federal receiver's website.