Money Talk: Business execs more optimistic about U.S. economy and hiring outlook

Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news. ––––––––––––––––

BUSINESS EXECS MORE OPTIMISTIC ABOUT U.S. ECONOMY AND HIRING OUTLOOK
Business executives are feeling more confident about the U.S. economy’s prospects than last quarter, but remain more guarded in outlook than they were a year ago, according to the second quarter AICPA Economic Outlook Survey, which polls chief executive officers, chief financial officers, controllers and other certified public accountants in U.S. companies who hold executive and senior management accounting roles.

Some 37% of survey takers expressed optimism about the U.S. economy over the next 12 months, up from a three-year low of 28% last quarter. That measure stood as high as 68% in the first quarter of 2015, however. Profit and revenue expectations also improved in the quarter, but remain below projected growth rates from a year ago.

One bright spot this quarter is hiring outlook: Some 19% of business executives say their organizations are ready to hire immediately, up from 15% last quarter. The percentage of executives who say their company needs employees but are reluctant to hire also increased from 16% last quarter to 18%.

SEC HALTS PONZI SCHEME AIMED AT MIDDLE CLASS
The Securities and Exchange Commission has charged two California men and their investment firm with operating a Ponzi scheme as they purported to specialize in serving middle-class investors and securing exorbitant returns by investing in hot pre-IPO stocks. The agency also obtained a court-ordered asset freeze against them.

The SEC alleges that instead of using the firm’s purported proprietary trading models and investing in pre-IPO shares of well-known tech companies like Uber, Alibaba, and Airbnb as promised to investors, Jaswant “Jason” Gill and Javier Rios personally pocketed at least $2.8 million in investor funds, using some of that money to pay for excursions to high-end restaurants and luxury retail stores as well as jaunts to Las Vegas casinos, gentlemen’s clubs, and professional sporting events. They never actually invested in any pre-IPO shares, and have been using money from new investors to pay supposed returns to earlier investors.

The duo raised approximately $10 million through their firm, JSG Capital Investments and related entities, by catering to average retail investors and promising them exclusive investment opportunities “previously only available to the one-percenters,” with guaranteed annual returns up to 60%.