SAN DIEGO -- The Securities and Exchange Commission says a San Diego man who raised $70 million from 300 investors was running a Ponzi scheme, and 10News has learned how he spent much of the money.

The SEC complaint filed Monday in federal court and announced Thursday accused MAK 1 Enterprises Group LLC and its 32-year-old chief executive, Mohit A. Khanna, of securities fraud. It said he raised money from investors in California, Texas, New York and elsewhere, promising returns of up to 55 percent.

The SEC said Khanna misspent money to pay for luxury properties, including 15 properties spread across the country. That figure includes three in San Diego County worth more than $1.8 million each.

Federal authorities said Khanna's Virginia home near Washington, D.C., is worth nearly $4 million, and includes 7.5 bathrooms.

Khanna bought one Poway home for $1.8 million, and federal authorities said he liked the neighborhood so much he also bought the house next door and paid in cash.

According to e-mails sent by Khanna to all of his investors, he tried to avoid suspicion even after dividend checks stopped showing up.

Just months before investigators exposed his business, he wrote, "I am trying my best to return the calls as well as work on getting our funds for disbursement. I continue to ask for your patience so that I may complete the task at hand."

Patty Wynne and Tim Elliotte invested with Khanna, and both started asking questions when their dividend checks stopped arriving.

"For him having these few years of living this extravagant lifestyle, what it worth it? Was it worth it? Because he's hurt a lot of us," said Wynne.

"This could be a reality that I might lose everything I've worked so hard for. You know, everything ... including my home," said Elliotte.

Federal authorities said Khanna's parents also benefited by living in a North County home he owned.

Khanna is due in court at the end of the month.

Victims of this Ponzi scheme are encouraged to contact the SEC.