PHOENIX — A Mesa man lied to investors and created a Ponzi-like scheme to repay earlier investors, the Arizona Corporation Commission said Tuesday.
Michael Saquella of Mesa, and his companies Best Image I, LLC, and Cactus Blue Entertainment, LLC, were ordered to pay $915,005 in restitution and a $100,000 administrative penalty for defrauding people who invested in their movie-making venture.
In April 2018, Saquella began fundraising for various film and TV projects. Saquella did not disclose to investors that the ACC had sent a cease and desist order to his production company in 1978 for violating registration rules of the Securities Act and committing securities fraud.
In addition to the 1978 violations, Saquella pleaded guilty to Conspiracy to Commit Securities Fraud and Conspiracy to Commit Electronic Mail Fraud in 2007 and was ordered to pay $7,806,303.48 in restitution
The ACC says Saquella promised investors in 2007 that "their investment would "probably" make an 800% return within six to 18 months."
Saquella would then use the funds they invested for film or TV projects to pay rent, lifestyle expenses and to repay other investors, commissioners said.
Saquella and his companies were ordered to pay restitution at a hearing by the ACC on Nov. 6.
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