By Kathy Bazoian Phelps
Below is a summary of Ponzi scheme activity reported for July 2026. There were at least 16 new Ponzi schemes revealed worldwide this month, 4 guilty pleas, and more than 87 years of prison sentences. The average age of the fraudsters was about 52 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed.
Chad Michael Boal, 58, and Cory Duane Richards, 52, of Iowa, were indicted on charges relating to an alleged Ponzi scheme run through a self-supporting “humanitarian foundation” call Golden Bar Foundation. The scheme promised returns of 24% to 100% in a risk-free and tax-free investment in bond trading, property flipping and development, and holding money in escrow accounts that banks borrowed against or leveraged. They also maintained other “humanitarian foundations” called F8511 Foundation, New Life 314 Foundation, True North Foundation, and Silver Bar Foundation.
Jason Cloth, 60, of California, was indicted on charges that he was running a Ponzi scheme that defrauded investors out of more than $100 million. Cloth allegedly solicited investors to invest in purported film and entertainment products through Canada-based Creative Wealth Media Finance Corp. He also partnered with BRON Studios, which filed bankruptcy in 2023. Cloth is a high-profile Hollywood financier who financed the “Joker,” “Ghostbusters: Afterlife,” and dozens of other movies.
Christopher Alexander Delgado, 34, of Florida, pleaded guilty to running a Ponzi scheme through Goliath Ventures fka Gen-Z Venture Firm, that defrauded more than 1,000 investors out of at least $250 million. Delgado promised returns from crypto-related investments. Instead, he purchased at least six residential properties, high-end vehicles, watches and jewelry.
Scott Given, of Massachusetts, was charged by state regulators alleging that Given was running a Ponzi scheme through the Croft School. He allegedly defrauded parents into buying $8 million of unregulated bonds to supposedly provide quality private education at reduced costs but instead used the money to pay off initial investments and commingled with his personal funds. Given obtained $3.16 million from parents to purchase the “Croft bonds” and promised 12.5% interest.
Barbara Hirshfield, 83, of Massachusetts, pleaded guilty to charges that she was running a $10.9 million Ponzi scheme through Ideal Financial Services and Ideal Financial Holdings. They promised high returns from motor vehicle and small loans. About 205 victims were defrauded.
Shahid Javed, 41, of New Jersey was sentenced to 7 years in prison in connection with a Ponzi-style scheme that lured in $7.7 million. Javed promised returns from fake fuel companies, Prime Petroleum Group LLC and Petro Traders Group LLC and solicited investments into East Coast Energy Partners which he claimed would buy and resell jet fuel.
Jay Lucas, 71, pleaded guilty to running a $50 million Ponzi scheme, promising investors returns from investments in emerging companies in the health and wellness space. He ran the scheme through Lucas Brand Equity, a boutique investment firm and three funds known as Lucas Brand Equity LP, LB Equity Emerging Growth and LB Equity Wellness Growth. Some of the money raised went to Immunocologie, a luxury skincare businesses run by his wife, Karen Ballou. She has not been charged in connection with the scheme. Lucas transferred more than $6 million into an account belonging to XL7 Group LLC, a firm owned by Ballou.
Matthew Melton, 62, of Colorado, was sentenced to 4 years and 3 months in prison for running a Ponzi scheme using an investment vehicle called. He purported to invest in futures contracts using a proprietary trading algorithm Price Physics and promised returns of up to 12% per month. Melton kept 2% of the returns as compensation and used investor funds to pay his personal expenses and to make payments to investors.
Marc Henry Menard, 43, of New York, was sentenced to 5 years of probation and barred from trading securities for running a Ponzi scheme that targeted the Haitian community. He stole more than $600,000 and promised returns of 12% to 20% and an increased payoff if investors gave him more money.
Stanley Pophal, 64, of Wisconsin, pleaded guilty to running a snowmobile Ponzi scheme. He defrauded 190 investors out of $14.25 million.
Richard Scheich, James Delverne, 55, and Doug Miller were sentenced to 11 years, 17 years, and 12 years, respectively, in connection with the Ponzi scheme run through Northwest Capital. Nancy Rathbun, the wife of deceased Gary Rathbun, was sentenced to 2 years of community service. The scheme defrauded at least 200 investors out of $72 million. Northwest Capital promised returns from the financing and selling of interests in unpaid invoices.
Zan Shaikh and Mining Automatic, a crypto mining investment business, were sued by the SEC on allegations that they raised $22 million from more than 380 investors. Only 13% of the funds were spent on mining operations. About $7 million was spent on advertising, and Shaikh used investor funds on personal expenses.
Gary Topolewski, 64, of California, was sentenced to 6½ years in prison in connection with a $39 million scheme in which he borrowed money from lenders to supposedly purchase industrial earth-moving construction equipment but instead purchased properties and used new money from new lenders to pay the earlier lenders. Topolewski moved the money through Topolewski America Inc., Morrison Knudsen Services Inc., and Metal Jeans Inc.
Trevor Uhls, 29, of Missouri, was charged on allegations that he was running a $2.1 million Ponzi scheme that guaranteed returns of 10% to 15% after 30, 60, or 90 days. At least 24 people were defrauded. He used the business names Trevor Uhls LLC and Midwest Homes.
Trevor L. Vernon, of North Carolina, and his company, Argent Capital Management LLC, were sued by the CFTC, allegedly that they were operating a Ponzi scheme through a crypto commodity pool. Vernon solicited $14.8 million from at least 60 investors, and he falsely claimed he was a successful trader.
Benjamin Paul Wiener, 43, of South Dakota, was indicted in connection with an alleged $25 million Ponzi scheme run through a group of entities known as Benaiah Holdings. Wiener solicited about $25.1 million into digital assets investments like hedge funds. He returned about $12 million to investors and kept $5.7 million for her personal use.
INTERNATIONAL PONZI SCHEME NEWS
Canada
Authorities have accused Robert George Henry Tyrer and his company, For the People, of running a Ponzi scheme that raised nearly $2.6 million from 85 people. Tyrer promised returns of up to 100% from foreign exchange trading. He spent more than $175,000 on a Rolex, rent, personal training and yoga and a tattoo, among other personal expenses.
England
Steven Long, 59, was sentenced to 8 years and 4 months in connection with a scheme he ran with Raymond Simpson, 79, through Universal that defrauded 115 victims out of £11.5 million. Simpson was not present in court but was sentenced to 5½ years. They ran a wealth management group and offered to manage funds and protect trust funds for inheritance planning.
India
Authorities seized an aircraft as part of its money laundering investigation of an alleged Ponzi scheme run by Capital Protection Force Pvt Ltd.
Roshan Bhushan Seth, 52, was arrested in connection with an alleged Ponzi scheme that promised returns of 2% to 5% monthly returns.
Authorities attached assets worth ₹5.54 crore in connection with an alleged Ponzi scheme run through Jeevan Suraksha Group of Companies.
Subodh Honnappa Kuge, 21, and Pramod Fakirappa Halemani, 49, directors of Sridevikuge Ventures Private Limited, were arrested on charges that they ran a large investment fraud that promised investors a 5% monthly return and promises that their entire principal amount would be returned after 20 months.
Authorities arrested Milan Garg, 37, Sukhdev Thakur, and Abhishek Sharma in connection with an alleged Ponzi scheme run through cryptocurrency platforms known as Korvio, DGT, Hypenext, and A-Global. Subhash Sharma, the alleged mastermind of the scheme, is still missing. About 248,000 investors were defrauded and invested over $219 million.
Authorities are investigating an alleged Ponzi scheme and raided Growdhan, Tilakwadi, and City Index. The alleged scheme defrauded 1,100 investors by promising 4% returns per month from hand loans.
Kitcha Veerbhadra Rao was arrested in connection with an alleged Ponzi scheme that defrauded 270 investors. The scheme promised 10% to 16%
Malaysia
Datuk Allan Goh aka Goh Hwan Hua was ordered to repay RM67.56 million to 206 investors after the court found that he was running a Ponzi scheme through the I-Serve “ecosystem.” Goh and 15 companies ran the scheme by promising guaranteed monthly returns through investment instruments such as letters of participation, partner financing agreements, and redeemable preference share subscription agreements. On of the companies, Trillion Cove Holdings Berhad, was wound up in 2024.
Nigeria
National Reading Culture (NRC) collapsed and caused a loss of billions of Naira. The website unexpectedly shut down and users were blocked from withdrawing their funds.
Singapore
Anisha Putrie, 47, was sentenced to 10 years and 2 months in prison after pleading guilty to running handbag Ponzi scheme that defrauded victims out of more than $6 million. She offered monthly returns from a construction business that sourced plots of land that could be sold for a profit.
South Africa
Kiran Balraj aka Ash, and his wife, Meera Balraj, and son Akhil Balraj, were accused of running a Ponzi scheme in different businesses that they would first form, recruit investors to fund, and the close the business with the excuse that it had suffered a setback such as an accident or the company experiencing financial difficulties that resulted in its closure. One company used was Stealth Trans Pry Ltd.
South Korea
Lee Dae-hee was sentenced to 18 years in prison in connection with a 100 billion won ($66.7 million) Ponzi scheme run through Seojung Art Center. Lee sold factional shares of artwork through dealers and promised to distribute resale profits to investors. He defrauded 981 victims. Lee argued at trial that the dealers who recruited investors should be treated as accomplices, but the court rejected that argument in calculating damages.
Authorities shut down an alleged Ponzi scheme run through a fake volunteer group, Brilliance Team. Seven suspects were taken into custody and accused of defrauding 436 victims in a cryptocurrency scheme. They promised returns of 1,000% from investments in AIXT Coin and stole 40.9 billion won ($29.6 million).
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