SEC Action Halts Tire Recycling Scam

FOR IMMEDIATE RELEASE 2008-164 Washington, D.C., August 1, 2008 — The Securities and Exchange Commission has obtained emergency relief to stop an allegedly fraudulent scheme that raised over $7.2 million from investors who were told the money would be used in a business shredding and recycling used tires. However, as alleged in the SEC's complaint, the tire shredding equipment did not work, there was no reasonable basis for Merklinger's income and return figures, and the investors never received a dime from their investment. The order of preliminary injunction and asset freeze was issued on July 31, 2008, by the Honorable Gerald E. Rosen of the United States District Court for the Eastern District of Michigan against Paul G. Merklinger (Merklinger) of Novi, Mich., and Encore Associated Leasing, LLC (Encore Leasing), a company... [read full story]