Nothing to do with Affiliates and everything to do with Securities Fraud. SEC takes that stuff seriously. What an imbosil. Unfortunetly, they will use this to degrade affiliates everywhere.
The other Web sites would pay Marshall a percentage of gamblers’ losses. He told investors that he would eventually develop a separate gambling Web site, authorities said. He sold ownership in his company for $10,000 per unit, but authorities said the program generated less than $1,000 in revenue for Marshall’s company.
However, in 2003 and 2004 he told investors the company was successful and mailed false earnings reports so they would invest more, prosecutors said. At least 41 people, mostly elderly victims using retirement money, lost more than $900,000.