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SALT LAKE CITY — An Orem man deceived hundreds of investors out of about $28 million in an extensive Ponzi scheme that began in 2010, according to a complaint filed by the U.S. Securities and Exchange Commission.

Chad Deucher, 43, misled more than 250 investors across the United States by promising them their funds would be used to buy properties and would net them guaranteed returns, the SEC alleges.

Instead, their investments were used to pay off previous investors or to support Deucher's personal expenses, including a one-time mortgage payment of more than $84,000 in January 2015, according to the civil complaint filed Jan. 19.

U.S. Attorney's Office spokeswoman Melodie Rydalch wouldn't comment Wednesday on whether a criminal case is being pursued against Deucher.

The SEC said it has obtained a court order freezing the assets of Marquis Properties, as well as Deucher, who is CEO and president of the Orem company. Richard "Rick" Clatfelter, 42, of Phoenix, also is named in the lawsuit as executive vice president of the business and his assets were also frozen.

Deucher and Clatfelter guaranteed their investors they would see returns by "represent(ing) that investments were safe and low risk because the notes and investment contracts were 100 percent collateralized by valuable real property," the SEC said in a statement in January.

"Marquis failed to purchase properties with investor funds, however, and properties offered as collateral were often not owned by Marquis, were substantially encumbered, or were in uninhabitable or blighted condition," the statement reads.

SEC attorneys are seeking civil penalties and other measures against Deucher, Clatfelter and their company. In its complaint, the agency also names Deucher's wife, Jessica Deucher, 43, as a relief defendant and alleges she received more than $376,000 in investor funds from her husband despite having "no legitimate claim" to the money.

"Jessica Deucher did not perform work for Marquis," the complaint states.

As a relief defendant, Jessica Deucher's gains from her husband's alleged Ponzi scheme may also eventually be recovered, depending on the outcome of the case.

Clients began in 2015 to complain about payments missed or made late by Marquis Properties, a company that has no "legitimate business operations," court documents state. As recently as Jan. 6, Chad Deucher told an investor he was "getting things going again," the complaint states.

"Marquis has failed and/or been unable to make payments according to the terms of the investment agreements," the complaint says. "In spite of this, Deucher has continued to solicit new investors, while not disclosing that Marquis has failed to make promised payments to current investors."

Chad Deucher was charged in August 2015 with issuing a bad check or draft for allegedly depositing a $4,000 check at Zions Bank in Orem, withdrawing it and later failing to pay the bank when the check was rejected. The check was in the name of Marquis Properties, according to court documents.

The case was dismissed with prejudice in December when Chad Deucher paid the outstanding balance to a "victim coordinator" for 4th District Court, records show.

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