Complaint Alleges Firm Ran Ponzi Scheme From Peabody Trailer Park

PEABDOY, MA -- Two men stand accused of running a Ponzi scheme out of a Peabody trailer park that has allegedly bilked investors out of $5.8 million since 2005. An administrative complaint filed by Secretary of the Commonwealth William Galvin’s office accuses ARO Equity LLC and the company's principals, David Renison and Timothy James Allcott, of targeting investors who were mostly in their 70s and 80s with investment returns of 8% to 12% annually.

While the firm had a business address in Boston, Galvin's complaint said the scheme was mostly run from a mobile home that Allcott shared with another man. Renison, who was barred from the securities industry in 2014 by the U.S. Securities and Exchange Commission , allegedly earned $710,000 from ARO. The complaint also accuses ARO of hiding payments to Renison from the SEC.

"With little to no actual return on the fund’s business investments, monthly returns to ARO Equity investors are paid using funds raised from later investors, the classic hallmark of a Ponzi scheme," Galvin's complaint said.

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Patch file photo.

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).