[ by Howard Haykin ] The SEC obtained a temporary restraining order and asset freeze against a Utah man and company charged with operating a real estate-based Ponzi scheme that bilked $100 million from investors nationwide. SEC Findings and Allegations. The SEC complaint filed in U.S. District Court for the District of Utah, names West Jordan,UT-based Wayne Palmer, 57, and his firm, National Note of Utah, LC.  Palmer has been in real estate and real estate financing since 1976.  In 1992, he formed National Note. Palmer located new investors primarily by word of mouth and referrals. In addition, he taught real estate seminars across the country, and also made contact with potential investors at these speaking engagements. When dealing with potential investors, Palmer allegedly told them that their money would be used to buy mortgage notes and real estate assets, or to make real estate loans.  His sales pitch, which included guarantees of 12% annual returns, attracted over 600 individual investors - Palmer said he could guarantee 12% because the combined expertise of him and National Note allows them to generate returns of 15-20% annually. The SEC further alleges that Palmer assured investors that their money would be completely secure - National Note had a perfect record, having never missed paying principal or interest on its promissory notes.  Glossy marketing materials that Palmer provided to some investors showed that National Note returns did not fluctuate and stated that investors were guaranteed payment even if property owners missed payment on mortgage loans that National Note held. National Note Raises Funds. National Note raised about $50mn in an unregistered offering of notes prior to September 2007.  In September 2007, National Note carried out a private placement of notes under Rule 506 of Regulation D - also raising about $50mn, and provided offerees with a PPM that included unaudited financial for the prior year.  Promissory notes were sold in minimum lots of $25,000, with terms of between 2 and 5 years. Classic Ponzi Scheme. Most of the taken in by National Note was used to pay earlier investors.  According to the SEC, since 2009, National Note would not have been able survive but for the influx of new investor funds, and that its payments to investors all but stopped in October 2011.  Throughout National Note's cash shortage, Palmer continued to reassure existing investors that their money would be forthcoming, and continued to solicit new investors without disclosing the that National Note was delinquent in making payments to investors. SEC Charges. National Note and Palmer are charged with violating the anti-fraud and securities registration provisions of U.S. securities laws.  Palmer also was charged with operating as an unregistered broker-dealer. SEC Salt Lake Regional Staff Credits. Investigation by Scott Frost, Paul Feindt, Matthew Himes, Alison Okinaka.  Thomas Melton will lead the litigation. For further details, go to:  [SEC PR 12-119, 6/26/12] and  [SEC Complaint].