July 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for July 2025. There were at least 9 new Ponzi schemes revealed this month, 3 guilty pleas, and 23 years of prison sentences. The average age of the fraudsters was about 51 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Joshua Allen and Michael Cox, of Texas, were accused of running a massive Ponzi scheme through Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. Brooklynn Chandler Willy was previously charged in connection with the scheme. They allegedly misled investors about the security of the investments and concealed their high commissions, while defrauding investors out of as much as $82 million. Ferrum loaned the money to Collins Asset Group, which later filed bankruptcy.

Milendophe Duperier, 33, and Vanessa Joseph, 26, of Massachusetts, pleaded guilty to charges related to a Ponzi scheme that defrauded dozens of investors out of more than $3.2 million. The scheme promised returns from securities investments that were not made. Instead, the couple used the funds for personal expenses and luxury vehicles.

Edwin Brant Frost IV, 67, a Georgia politician, was accused of running a $140 million Ponzi scheme that allegedly defrauded 300 investors. The SEC sued First Liberty Building and Loan LLC, an entity controlled by Frost, alleging that Frost lied to investors about the supposed business of making high-interest loans to companies. Frost promised returns of 16% on the loans that were charging 18%. Frost is alleged to have misappropriated $19 million for himself, his family, and affiliated companies. Frost issued an apology to those he had harmed.

Imer Gomez, 28, of Texas, was sued by the SEC on charges that he has his companies, K&G Investment Solutions LLC and Helios Venture Fund LLC, were running an alleged Ponzi scheme. Gomez promised monthly double-digit returns from securities trading. Gomez represented that the companies were insured for up to 75% of the value in each client’s account.

Andrew Hamilton Jacobus, 64, of Florida, was arrested on allegations that he was running a $94 million Ponzi scheme. He ran the international scheme through Kronus Financial Corporation and Finser International, promising high returns on supposedly secure investments. He allegedly fraudulently induced investors to invest approximately $94 million in accounts he controlled. 

Edwin Emmett Lickiss, Jr., 77, of California, was charged in connection with an alleged $9.5 million Ponzi scheme run through Foundation Financial Group for more than 25 years. Lickiss’s broker’s license was suspended in 2014, but he continued to solicit investments on bonds until 2024. He defrauded at least 80 victims, promising returns of between 9% and 32% per year. He used the money for personal expenses.

Vincent Anthony Mazzotta Jr. aka Vincent Midnight, Delta Prime, and Director Vinchenzo, 54, of Arizona, pleaded guilty to charges that he ran a Ponzi scheme promising profits from investments in cryptocurrency markets using automated trading robots powered by artificial intelligence. Mazzotta ran the scheme with David Saffron, and they defrauded victims out of more than $13 million. They used fictitious investment firms such as Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital and Cloud9Capital.

Shane Donovan Moore, 37, of Washington, was sentenced to 2½ years in prison in connection with a $900,000 crypto mining Ponzi scheme. The scheme defrauded more than 40 investors and promised them 1% returns daily. The funds were to be spent on crypto mining hardware.

Matthew Motil, 45, of Ohio, was sentenced to 5 years and 10 months in connection with a real estate Ponzi scheme that brought in more than $7.3 million from at least 63 victims. The scheme ran from 2017 to 2022. Motil used his podcast to brand himself the “Cash Flow King” and gain credibility with his victims.

Ronald Pallek, 55, of Illinois, was sentenced to four years and ordered to pay about $1.6 million in restitution in connection with a $1.6 million Ponzi scheme that defrauded over 100 investors. Pallek sent falsified earning statements to his victims and used the funds to pay for his living expenses and gambling.

Cesar Humberto Pina aka Flipping NJ, 47, was indicted on charges that he was running a real estate Ponzi scheme. Pina conducted real estate seminars, promoting investments for his program in which he would allegedly purchase, remodel, and sell real estate properties in New Jersey. He promised returns of 30% or higher within 4 to 5 months.

Alcides Roman, 66, of Tennessee, was sentenced to 5 years and 11 months in prison in connection with a Ponzi scheme described as high yield investments. Roman did not invest the funds, and victims lost approximately $2 million.

Michael Shannon Sims, and Juan Carlos Reynos, were charged in connection with their roles in the OmegaPro Ponzi scheme. Andreas Szakacs, the co-founder of the scheme along with Sims, was arrested in Turkey in 2024. The scheme defrauded victims out of more than $650 million, in which investors were promised 300% returns over 16 months from foreign exchange trading.

Willard Timothy Sutton, 64, of North Carolina, was sentenced 5 years and 3 months in prison and ordered to pay almost $9 million in restitution in connection with a Ponzi scheme run through his business, Greenville Auto World, LLC. More than 65 victims lost approximately $9 million in the scheme that raised more than $63 million. The scheme ran from 2012 to 2023 with Greenville functioning as a car dealership that enabled customers with poor credit history to finance the purchase of vehicles from the dealership rather than through a bank. Sutton then sold the finance contracts to outside investors.

James Wellesley, 58, was extradited to the US to face charges relating to an alleged $99 million Ponzi scheme involving expensive wines. Wellesley pleaded not guilty. His co-defendant, Stephen Burton, 60, was extradited from Morocco in 2023, and also pleaded not guilty. The scheme was run through Bordeaux Cellers, which brokered loans between investors and wine collectors that were secured by their wine collections. The wine collectors did not exist, however, and Bordeaux Cellars did not have possession of the wine securing the loans.

INTERNATIONAL PONZI SCHEME NEWS 

England

Raymondip Bedi and Patrick Mavanga were arrested and jailed for running a fake cryptocurrency consultancy firm that defrauded at least 65 investors.

India

Aaryan Singh Chhabra, 39, was arrested on allegations that he was running a large-scale Ponzi scheme disguised as an invoice discounting platform called Falcon. Approximately 4,065 investors were defrauded through the scheme that offered high short-term returns through fake deals with multinational corporations. Nine other people have been arrested in connection with the scheme. Capital Protection Force Pvt., Ltd. is also accused of wrongdoing for the development of the Falcon Invoice Discounting Application and advertisement through social media platforms.

Nigeria 

Qin Xiao Yong, Luo Mao Yang, Liu Ni Ni, Liu Gang, Sun Qi aka Wan Jin Ping, Zhang Juan, Li De Wen, Fun Min, and Tan Ming, all Chinese nationals, were sentenced to one year in prison for their roles in a Ponzi scheme.

Singapore

Lee Si Ye and Ju Xiao, former directors of Envy Group of companies, were found liable to investors for as much as $654 million in Singapore’s largest Ponzi scheme. The scheme was a nickel-trading scam. Ng Yu Zhi was the mastermind of the scheme but has been declared bankrupt so was not part of the judgment.