The Utah Division of Securities has issued a cease and desist order against Alternate Business Capital of Sandy and two individuals associated with the company.
Alternate Business Capital allegedly was selling interest in Mutual Benefits Union Corp., a Nevada-based company also named in the cease and desist order. The division claimed Bonnie Kunz and Michael Spencer offered an investment in Mutual Benefits through Alternate Business Capital, promising investors between 6 percent and 300 percent returns per year.
Kunz and Spencer also allegedly told investors that Mutual Benefits Union was the fourth-largest financial institution in the world, and that the company had been in business for more than 50 years. Corporate records indicate the company was incorporated in 1998, the division stated.
Additionally, the president of Mutual Benefits, Nia Cano, was enjoined by the Federal Trade Commission for operating a pyramid scheme in 1997. The division alleged the company did not disclose that fact to investors. Nor did it tell investors how the investment funds generated profits, who the company officers were and their past investment experience, the performance to previous investors and other standard disclosure issues, the division alleged.
Individuals or investors with information about Alternate Business Capital or Mutual Benefits Union may contact the Utah Division of Securities at 1-801-530-6600.