By Kathy Bazoian Phelps
Below is a summary of Ponzi scheme activity reported for April 2026. There were at least 7 new Ponzi schemes revealed this month, 4 guilty pleas, and more than 28 years of prison sentences. The average age of the fraudsters was about 54 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed.
Matthew James Addy, 47, was sentenced to 51 months in prison for running a Ponzi scheme that defrauded victims out of nearly $750,000. He used the money to repay more than $2 million to victims of a previous con that had landed him in prison for 4 years more than a decade ago.
Jose Bello, 38, of Florida, was charged in connection with an alleged Ponzi scheme that promised returns to investors from supposed short-term, high return loans for real estate transactions or storm damage repair. Authorities allege he raised at least $5.7 million and caused losses of at least $1.8 million.
Tyler Bossetti, 31, of Ohio, was sentenced to 6 years in prison and ordered to pay more than $12.5 million in restitution in connection with a real estate program he promoted as a social media influencer through Boss Lifestyle LLC. He guaranteed 30% returns in short periods of time. He received $23 million from more than 140 investors and more than $11 million was lost.
The estate of John R. Brodacki, III and Castle Hill Financial Group LLC were sued by the SEC on charges that they engaged in a $1.68 million Ponzi scheme that defrauded at least 18 clients. They were acting as investment advisors but were not registered and were making Ponzi-like payments.
Vincent J. Camarda, 62, pleaded guilty to charges that he ran a Ponzi scheme as an investment officer. He is the ex-CEO of A.G. Morgan Financial Advisors and used investor funds on plastic surgery for himself and luxury goods.
John Farahi, 54, of California, was indicted on charges that he ran a $20 million Ponzi scheme. He allegedly ran the scheme through New Point Financial Services, which he claimed generated returns from low-risk investments in certificates of deposit, corporate bonds, and deeds of trust. He lost at least $15 million and used funds to support his luxurious lifestyle. David Tamman, New Point’s corporate counsel, was also indicted on charges that he obstructed the SEC investigation.
Jose Fernandez had a final judgment and sanctions ordered against him in the SEC action alleging that he ran a Ponzi scheme through Avail Progression, LLC and Elite Generators, LLC. The scheme raised at least $4.3 million and promised guaranteed profits from foreign exchange trading.
Joel Richard Frank, of Washington, and his companies, naming Equilus Group, Inc. dba Equilas Financial Group and Equilus Capital Partners, LLC, were charged by state regulators with securities violations tied to a $39 million alleged scheme. They used multiple funds to run the scheme, including Cheney Park Commons I, Cheney Park Commons II, OldTown Commons, and ECP Opportunities Fund I and Meadow Wood DST.
Edwin Brant Frost IV, 68, of Georgia, the former president of First Liberty Building & Loan LLC, was charged in connection with the alleged Ponzi scheme that raised at least $140 million from at least 300 investors. Frost solicited investor to invest in short-term small business loans and promised between 8 and 18% returns. He spent more than $5 million on personal expenditures. Frost pleaded not guilty to the charges.
David Hardcastle, 61, pleaded guilty to charges relating to two fraud schemes, Bitwise Industries and Voyager Pacific Capital Management. The schemes caused $45 million in losses. Hardcastle admitted to his role in a $20 million high interest loan scheme through Bitwise in which loans were made to Startop Investments LLC, an entity he operated with Andrew Adler. Hardcastle also pleaded guilty to the Voyager Pacific scheme, which was a real estate investment firm. John Giarmarco and Vanessa Lung-Medlock were sued by the SEC, along with Hardcastle, in connection with the Voyager scheme.
Jean Joseph aka Jon, 55, and his wife, Janalie Camille Bingham, 55, of Florida, pleaded guilty to charges that they were running a scheme that raised more than $50 million from investors. They ran the scheme through Wells Real Estate Investment LLC. Joseph was convicted of wire fraud in 2019 but continued to direct the real estate fraud scheme while in custody. The couple falsely represented that investors would receive returns from the acquisition and improvement of residential and commercial real estate, and they represented that they had a $450 million real estate portfolio. They used more than $2 million for personal expenditures.
John Jay Kersey, 65, of Ohio, was sentenced to 5 years in prison in connection with an $8.6 million Ponzi scheme run over 20 years. Kersey was a financial advisor and convinced his clients to move the investments into other funds, but stole the funds for his own benefit. He pleaded guilty to the scheme last year.
Taino Lopez aka Tai, 48, was sued by the SEC on charges that he was running a $112 million Ponzi scheme. Tai is a YouTuber who sold get-rich-quick advice courses. He co-founded Retain Ecommerce Ventures with Alex Mehr, and they raised more than $230 million for hundreds of investors. May Burkenroad, Lopez’s cousin, was also named in the lawsuit.
Jay Lucas, 71, was charged by the SEC on allegations that he raised $50 million from more than 200 investors in a Ponzi scheme run through Lucas Brand Equity LLC. He was previously criminally charged in connection with the scheme.
Sudheesh Nambiar, 39, California, was charged by the SEC on accusations that he was running a $43 million Ponzi-like scheme as a day trader through Spartan Trading. The scheme allegedly defrauded more than 400 investors and promised them 70% of the profits. He lost approximately $21 million in trading losses and launched a separate fund called Spartan Trading Capital Fund, LP, raising about $900,000 from 9 investors.
Gary Rathbun, of Ohio, died by suicide, prior to his appearance at trial on charges relating to the Northwest Capital Ponzi scheme. Rathbun, along with four others, were facing charges that they ran a decades-long Ponzi scheme. Rathbun’s wife, Nancy Rathbun, pleaded guilty to the charges earlier this year. James Delverne, Doug Miller and Richard Scheich have all each previously pleaded guilty as well.
Ronald Roach, 59, of California, was sentenced to 5½ years in prison for his role as the accountant for DC Solar. He lied to investors to help DC Solar hide the lack of third-party lease revenue in the scheme. Others involved in the scheme are Jeff Carpoff, 55, Joseph Bayliss, and Ari Lauer, 61.
James Wellesley aka Andrew Fuller and Andrew Templar, was sentenced to 10 years in prison in connection with a wine Ponzi scheme that defrauded 140 victims out of $97 million. He claimed to be an executive broker for fine wine collections and, along with Stephen Burton, solicited investors to invest in Bordeaux Cellars. They claimed that Bordeaux Cellars brokered loans between investors and high net worth wine collectors that would be fully collateralized by high-value collections of wines.
INTERNATIONAL PONZI SCHEME NEWS
China
Liu Bi’an was sentenced to life imprisonment for his role as the mastermind behind a Ponzi scheme that raised more than $4.6 billion. The scheme was run through Zhongzhan Huaxin Group and affiliated companies. Liu and 15 others were found guilty in connection with the scheme that promised high returns and guaranteed principal and interest. In addition to the life sentence, Liu was stripped of his political rights for life and all of his personal property was confiscated.
