By Kathy Bazoian Phelps
Below is a summary of Ponzi scheme activity reported for November 2024. There were at least 8 new Ponzi schemes revealed this month, 3 guilty pleas, and 1 conviction. Ponzi schemers received more than 39 years of prison sentences this month and the average age of the fraudsters was about 46 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed.
Steven Andiloro, 53, of North Carolina, pleaded guilty to charges that he engaged in Ponzi-like activity through his car service business and a marijuana dispensary business. He brought in more than $2.6 million and used Paycheck Protection Program COVID relief funds as part of the scheme.
Mathias Bama, Valentine Bama, and Hilaire Leunkam and their businesses, Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC, of Maryland, were fined $17.2 million and permanently banned in connection with a $29 million Ponzi scheme that defrauded over 585 investors. The scheme promised a 6% monthly return for 12 months, equaling a 72% annual return, and targeted Cameroonian and Nigerian communities.
Vania Bell, who is currently serving a 6 year and 8-month sentence for running a Ponzi scheme along with her father, Hector May, 83, through Executive Compensation Planners Inc., was ordered to pay $31.6 million in restitution to victims. Hector May is serving a 13-year sentence.
Efrain Betancourt, Jr., 36, a Columbian national, was charged in Florida in connection with an alleged payday loan Ponzi scheme run through Sky Group USA, LLC. Betancourt promised returns of 24% to 120% and brought in $66 million from over 600 investors. Some investors were paid back, but there is still $39 million owed.
William V. Conn Jr. was hit with a judgment of more than $854,000 in connection with his role in John Wood’s Ponzi scheme run through Horizon Private Equity III LLC and Southport Capital. Conn was accused of running his own $2 million fund and putting his name on Woods’ funds as their straw manager.
Joseph Giuttari, of Rhode Island, pleaded guilty to charges that he ran a Ponzi scheme through Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, among others, and that he misappropriated more than $1.5 million. Giuttari used investor funds to make short term mortgages. The total amount of the loss is believed to be between $3,500,000 and $9,500,000.
Arsen Lusher, 49, of New Jersey, was arrested on allegations that he was running a Ponzi scheme through his trucking company that defrauded more than 20 investors out of more than $5 million. Lusher represented that he had a profitable trucking business that had delivery and installation contracts with multiple large retailers. Victims were promised 30% to 40% returns over one or two years. Lusher did not use the funds as represented to buy new trucks or grow the trucking business.
Matthew Mencarelli, 38, of Michigan, pleaded guilty to charges relating to a Ponzi scheme that defrauded more than a dozen victims out of approximately $1.7 million. He represented that he had lucrative contracts with state and local governments to install fiber optic or other infrastructure.
Debra Lynn Mercer-Erwin, 61, was sentenced to 16 years in prison in connection with a $550 million Ponzi scheme involving 100 fake airplane sales and smuggling tons of cocaine. Mercer-Erwin provided U.S.-registered private planes to drug cartels and traffickers through her company, Aircraft Guaranty Corp., and also used another company, Wright Brothers Aircraft Title. She would transfer plane ownership using fake information when confronted by law enforcement. Co-defendant Frederico Machado is currently a fugitive in Argentina.
Jennifer Iturraide Pina, 43, the wife of Cesar Humberto Pina, was charged with destruction of records when evidence revealed that she destroyed a cell phone while federal agents were at her door with a search warrant. Cesar Pina has been charged in connection with an alleged Ponzi scheme run with RaaShaun Casey, or DJ Envy.
Gustavo Rodriguez, 48, or California, was sentenced to 8 years in prison for his role in the IcomTech cryptocurrency Ponzi scheme. Rodriguez created and maintained the back-office system and website for the scheme. The IcomTech scheme founded by David Carmona, who was recently sentenced to 10 years, brought in about $58 million. Marco Ruiz-Ochoa was sentenced to 5 years in prison earlier this year. David Brend, 49, was convicted earlier this year.
Kris Roglieri, 44, was sued in a civil forfeiture action seeking control of his expansive sports car and watch collection. The lawsuit alleges that Roglieri ran a Ponzi scheme through Prime Capital Ventures, purporting to make large construction loans to businesses.
Thomas Nicholas Salzano aka Nicholas Salzano, 66, of New Jersey, was sentenced to 12 years in prison in connection with the scheme run through National Realty Investment Advisors LLC. The scheme defrauded more than 2,000 investors in a $658 million Ponzi scheme. From 2018 to 2022, Salzano lured money into a real estate fund operated by NRIA, NRIA Partners Portfolio Fund I LLC. Roy Grabato, NRIA’s chief executive, was also charged but is a fugitive believed to be in the Philippines.
Michael Saquella, of Arizona, along with his companies Best Image I, LLC and Cactus Blue Entertainment, LLC, were ordered to pay about $1 million in restitution and penalties in connection with a Ponzi-like scheme that involved investments in various film and tv projects. Saquella had previously been the subject of a cease-and-desist order in 1978, and had pleaded guilty to other charges in 2007 stemming from promises to investors that “their investment would ‘probably’ make an 800% return within six to 18 months.”
Sanjay Singh, 45, of Florida, was convicted in connection with a $100 million Ponzi scheme run through Royal Bengal Logistics. Singh raised approximately $112 million from investors and was previously charged by the SEC in a scheme that promised guaranteed returns of 12.5% to 325% from the purchase of contracts for trucking services. The scheme targeted the Haitian-American community. In 2023, the SEC also filed suit against Brisly Guillaume, 39, and Ricardi Celicourt, 40, alleging that they were unregistered brokers acting on behalf of RBL.
Dusan Varga and his firm Pannon Investment Advisors, of Florida, were sued by the SEC on allegations that they raised approximately $1.6 million from at least 20 investors in a scheme that targeted Serbian investors.
Aaron A. Wagner, 42, of Utah, and his business partner, Michael Mains, 46, were arrested on allegations that they were running a Ponzi-like scheme. They ran the scheme by directing lenders and investors to send funds to entities they controlled - Wagscap Food Services, LLC, Hello Sugar, Dirty Bird, Everbowl, Crumbl Cookies, Las Botellas, and others. Wagner is a millionaire restaurant entrepreneur who allegedly defrauded investors out of funds that he used for his personal gain. Instead of using the funds for restaurants and other businesses as promised, he used the funds for a home, real estate, and an $8 million private airplane.
Trent William Witteveen, 40, of Michigan, was sentenced at 3 years and 5 months and ordered to pay approximately $844,000 in restitution in connection with a timber harvesting Ponzi scheme known as Titans Timber LLC. Investors were promised returns from investments supposed timber harvesting rights from landowners. Witteveen brought in more than $2 million and used some of that money for his personal expenses.
INTERNATIONAL PONZI SCHEME NEWS
England
London Capital & Finance was found to have been operated as a Ponzi scheme. A court found that Michael Thomson, Spencer Golding, John Russell-Murphy, Paul Careless, and Robert Sedgwick knowingly participated in the fraud. The scheme promised high interest rates on mini-bonds and caused about 11,600 investors losses of more than £237 million. Investors were promised 8% returns.
India
Basudeb Bagchi, the founder of the Prayag Group, was arrested along with his son Avik.
Amber Dalal, the principal of Ritz Consultancy Services, was arrested in connection with an alleged Ponzi scheme that defrauded approximately 1,300 investors out of more than Rs 600 crore.
Indonesia
Hector Aldwin Liao Pantollana was turned over the Philippine authorities following charges that he defrauded thousands of people out of $68 million in a casino-related scheme. Pantollana promised high returns for investing in the casino-junket industry, which recruits high rollers to gamble.
Turkey
Hakan Ates, the CEO of Denizbank, and Mehmet Aydogdu, were indicted in connection with an alleged $44 million Ponzi scheme that defrauded dozens of investors. Secil Erzan was imprisoned last year. The scheme promised 250% interest in what was described as a secretive fund owned by the bank.
Vietnam
Nguyen Quang Hoang, 36, CEO of GFDI, was arrested in connection with an alleged Ponzi scheme that defrauded 7,000 investors out of VND3.7 trillion ($146 million). Tran Thi My Hanh was also arrested.
