The Securities and Exchange Commission yesterday filed a civil suit against two Philadelphia residents alleging that the individuals and their company executed a $30 million Ponzi scheme that persuaded over 300 investors to contribute funds for environmentally friendly, or “green,” businesses.
The complaint, filed in Denver federal court, says Troy Wragg, 28, and Amanda Knorr, 26, cofounders of Mantria Corp., made dubious claims and falsely promised significant returns from investments aimed at developing residential housing and from the production of a charcoal substitute called “biochar.”
The SEC alleges that the "green" representations were largely false, and investors were erroneously promised enormous investment returns ranging from 17 percent to "hundreds of percent" annually. However, the SEC continued to allege that, in fact, Mantria's environmental initiatives did not generate any significant cash, and returns paid to investors were funded almost exclusively from other investors' contributions.