The Securities and Exchange Commission on Thursday sued Roswell attorney Marc A. Celello, claiming he knowingly participated in a massive Ponzi scheme while serving as general counsel for multiple limited liability corporations owned and operated by his client—who is also at the center of a long-running legal battle with the SEC.

The SEC accuses Celello of multiple instances of fraud and of violating federal securities laws in a long-running investment scheme that SEC attorneys said was orchestrated by Celello's client and boss, James Torchia, whose companies included Credit Nation Capital, Credit Nation Acceptance, American Motor Credit, Credit Nation Auto and Spaghetti Junction, all limited liability companies.

Celello, according to the suit, was Torchia's partner in the Credit Nation enterprise and served as general counsel for the Credit Nation companies. The SEC described him as “an active participant” in the scheme, contending that he prepared misleading offering memoranda used in soliciting investors.