tag:blogger.com,1999:blog-82084315993819419902024-03-19T01:47:47.817-07:00The Ponzi Scheme BlogKathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.comBlogger248125tag:blogger.com,1999:blog-8208431599381941990.post-75441475225322168692024-02-29T20:21:00.000-08:002024-02-29T20:21:51.764-08:00 February 2024 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for February 2024. There were at least 6 new Ponzi schemes revealed this month. Ponzi schemers received more than 134 years of prison sentences and 4 guilty pleas. The average age of the fraudsters was about 53 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Vladimir Artamonov</b> was accused of running a $2.9 million Ponzi scheme and his investment program run through <b>Project Information Arbitrage fund</b> was shut down. Artamonov is a Harvard MBA graduate and he used alumni network to defraud at least 29 people. He projected returns of 500% to 1,000% by claiming to be able to identify investments Berkshire Hathaway would make ahead of the market from public state insurance files.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Feloni</b>, 64, and his company, <b>Stock Squirrel, Inc</b>., had judgments entered against them in a case brought by the SEC. They were ordered to pay over $2 million in disgorgement. The scheme defrauded approximately 180 investors out of almost $2.5 million by promising them returns from the development of a smartphone application offering financial services to the youth sector.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gary L. Gauthier</b>, 74, of Florida, was sentenced to 5 years in prison in connection with a Ponzi scheme he ran with <b>David Dreslin</b>. The scheme defrauded about 40 investors out of $6 million. Gauthier was the former host of the Christian radio show “<b>It’s God Money</b>.”</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rafael Alberto Vargas Gonzalez</b> aka <b>Rafael Vargas</b>, 42, was barred from the securities industry by the SEC in connection with a fraudulent scheme run through <b>Empirex Capital LLC</b>. The SEC had alleged that Gonzalez raised at least $6.6 million from at least 162 investors and promised returns from crypto assets as well as from stocks and bonds. The money was not used for that purpose and Gonzalez misappropriated about $1.8 million. The scheme ran from 2018 through 2023.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rodney “Rocket” Grubbs</b> of Indianna was accused of running a Ponzi scheme through his company, <b>Pickleball Rocks</b>. Grubbs held himself out as “pickleball’s ultimate ambassador.” He offered investment opportunities in his company that promoted tournaments, equipment, and clothing in the pickleball industry. About 140 investors invested several million dollars, and they were promised guaranteed returns of 12%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alan John Hanke</b>, 50, was charged in New Yok on allegations that he was running a Ponzi scheme through <b>IOLO Capital</b>. Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.” Hanke filed bankruptcy in 2021, but did not disclose the millions of dollars from investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ronald Walter Hannes</b>, of Washington, was sentenced to 5 years of probation after pleading guilty to operating a Ponzi scheme and defrauding investors out of more than $3 million. Hannes ran the scheme through <b>Hannes Financial Services, Inc</b>. and defrauded at least 21 investors. Investors thought they were investing in “high rate, tax free” bond investments and they were provided with fictitious account documents. The scheme ran from 2012 to 2020.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marlin Hershey</b>, 54, and <b>Dana Bradley</b>, 53, of North Carolina, were sentenced to 21 months and 10 months, respectively. They had pleaded guilty to running a scheme through <b>Performance Holdings</b> through which they offered unregistered securities in <b>Performance Retire on Rentals</b> and <b>Distressed Lending Fund</b>. They skimmed 10% off the top of some of the investments without telling their clients. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Xue Samuel Lee</b>, 35, and <b>Brenda Indah Chunga</b> aka “<b>Bitcoin Beautee</b>”, 43, were charged by the SEC in connection with the fraudulent scheme run through <b>HyperFund</b>. The SEC alleged that for almost two years, Lee conducted a $1.7 billion Ponzi scheme. The scheme was first launched through <b>HyperCapital</b> and then 6 months later was relaunched as HyperFund. It was known as <b>HyperNation</b> at the time of its collapse in 2022. Investors were promised daily returns of 0.5% to 1% of the value of their investment until they earned triple the value of their investment. The scheme was also alleged to be a pyramid scheme. Criminal charges have also been brought against Lee, Chunga and <b>Rodney Burton</b> aka <b>Bitcoin Rodney</b>, 54.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kumar Arun Neppalli</b>, 57, of North Carolina, was sentenced to 3 years and 8 months in prison and ordered to pay almost $1 million in restitution in connection with a Ponzi scheme. Neppalli targeted the Indian American community in an affinity fraud and promised them returns from real estate investments. He misrepresented that he had insider knowledge of development plans in the town of Chapel Hill due to his employment in the city and that he needed money within a short time frame, somedays the same day, to facilitate closing a transaction. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher John Pettit</b>, 56, of Texas, was sentenced to 50 years in prison in connection with a $65 million Ponzi scheme that he ran through his law firm, <b>Chris Pettit and Associates, PC</b>. Pettit ran the scheme for more than 20 years, falsely promising to provide various legal and financial services. Pettit opened trustee accounts with client funds and redirected the funds to his personal account. He also deceived clients into investing in high-yield bonds but instead diverted the funds to his personal account. He further misrepresented that he was a qualified intermediary for real estate exchanges, taking in millions of dollars.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carl R. Ruderman</b>, 82, of Florida, the former chair of <b>1 Global Capital LLC</b>, was sentenced to 5 years in prison in connection with the $250 million Ponzi scheme. Ruderman raised about $330 million for the scheme. Co-conspirators who have previously pleaded guilty are <b>Alan Heide</b>, 65, <b>Jan Atlas</b>, 78, <b>Steven Allen Schwartz</b>, 78, and <b>Andrew Ledbetter</b>, 81. 1 Global promised returns from pay day loans to small businesses at high interest rates.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas Nicholas Salzano</b>, 65, of New Jersey, pleaded guilty to running a $658 million real estate Ponzi scheme through <b>National Realty Investment Advisors LLC</b>. The scheme defrauded more than 2,000 investors. Salzano was the “shadow CEO” to conceal his history of fraud from investors, and <b>Rey E. Grabato II</b> was the CEO. Investors placed the funds into <b>NRIA Partners Portfolio Fund I LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brian Simms</b>, 46, of Indiana, pleaded guilty to a Ponzi-like scheme run through <b>Brendanwood Financial Brokerage LLC</b>. The scheme brought in almost $4 million. He is a licensed insurance broker, but not licensed to sell securities. He persuaded 20 people to liquidate their 401ks, annuities, and similar accounts and give their funds to him to invest. He falsified documentation to misrepresent that he had invested in legitimate investments. Simms agreed to pay more than $2.62 million in restitution to the victims.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Peter J. Strauss</b>, 45, of South Carolina, pleaded guilty to his role in connection with the <b>DC Solar</b> Ponzi scheme run by <b>Jeff and Paulette Carpoff</b>. Strauss admitted that he knowingly aided and abetted the transfer of funds from Carpoff. Strauss was an attorney, a captive insurance promoter, and founder of Strauss Global, an advisory services firm.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Phillip Wasserman</b>, 67, was sentenced to 15 years in prison in a Ponzi scheme case in which a jury found him guilty of fraud charges. Wasserman is a former lawyer and licensed insurance agent who solicited elderly investors to put their money into a new insurance venture called <b>FastLife</b>. Wasserman ran the scheme with <b>Kenneth Rossman</b>. Wasserman called himself the <b>Annuity King</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eliyahu “Eli” Weinstein</b> aka <b>Mike Konig</b>, 48, and <b>Aryeh “Ari” Bromberg</b>, 49, were charged in New Jersey in connection with an alleged fraudulent scheme run through <b>Optimus Investments Inc</b>. and <b>Tyron Management Group LLC</b>. The scheme promised returns from supposed access to deals involving scarce medical supplies, baby formula, and first-aid kits destined for Ukraine. <b>Christopher Anderson</b>, 47, <b>Richard Curry</b>, 36, and <b>Alaa Mohamed Hattab</b>, 35, previously pleaded guilty in connection with the scheme, and <b>Joel Wittels</b> and <b>Shlomo Erez</b> still have criminal charges pending against them. Weinstein’s previous 24-year prison sentenced was commuted by the then President following his conviction in connection with a $230 million real estate Ponzi scheme. The Optimus Investment scheme was started soon after Weinstein was released from prison, using the fake name Mike Konig so investors would not know of Weinstein’s involvement.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert Wisnicki</b>, 45, was sentenced to 6½ years in prison in connection with an $18.8 million Ponzi scheme he ran through <b>Wisnicki & Associates LLP</b> and <b>Wisnicki Neuhaser LLP</b>. He persuaded investors to invest in real estate opportunities. Wisnicki used funds from the Wisnicki firms’ clients who did not participate in the real estate investments, which were held in trust in the firms’ IOLA accounts and transferred those funds to the investors to conceal the losses to their investments. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John J. Woods</b>, 59, of Georgia, was sentenced to nearly 8 years in prison in connection with a $110 million Ponzi scheme run through companies <b>Horizon Private Equity III LLC</b> and <b>Livingston Group Asset Management Company</b>, doing business as <b>Southport Capital</b>. Woods pleaded guilty to the scheme that was run from 2008 through 2021 and lost about $50 million of investors’ funds. More than 400 people were promised returns of 6% to 7% and lost their investments.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Edward Anthony Zimbardi</b>, of Georgia, is under investigation in connection with an alleged Ponzi scheme that involved cryptocurrency and promised 25% monthly returns. California and Canadian authorities have separately taken action. Zimbardi is a convicted felon and is the owner <b>CryptoProgram</b>, which collapsed in 2023.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Colin Murphy</b>, 27, was sentenced to 5 months in jail for his refusal to turn over evidence relating to the Ponzi scheme run by <b>Aiden Pleterski</b>, 25, known as the <b>Crypto King</b>. Murphy refused to turnover an iPhone and hid it in a toilet caddy during a court-ordered search.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Charges were filed against <b>Michael Ongun Gokturk</b> and his companies, <b>Einstein Exchange Inc</b>., <b>Einstein Capital Ltd</b>., and <b>Einstein Law Corporation</b> (which was not a law firm). The scheme involved a supposed crypto trading platform providing sale and secure storage for user’s money and crypto assets. In reality, Gokturn transferred the deposits into his personal crypto wallet. At one point, the companies held more than $34 million in cash and crypto assets.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Charges were filed against <b>Gary Lee Rathbun</b>, a former radio host, on allegations that he was running a $72 million Ponzi scheme. Rathbun and his business partner, <b>Doug Miller</b>, lured in investors to invest into private companies associated with Northwest Capital. Approximately $25.5 million was invested by 187 clients into the related businesses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Neil Hirst</b>, 60, was charged with conspiracy to defraud in connection with an alleged £10 million Ponzi scheme that targeted British expatriates living in Mallorca. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Guy Flintham</b>, 46, confessed to a £19 million Ponzi scheme that defrauded 240 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Thomson</b>, the former chief executive of <b>London Capital & Finance</b>, is on trial on allegations that he ran a Ponzi scheme that collapsed in 2019. The scheme involved about 12,000 elderly investors and brough in nearly £240 million. Much of the money was used by Thomson on racehorses, luxury watches, and shotguns.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Iran</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">At least one person was arrested in connection with a scheme run through <b>Kourosh Company</b> that defrauded people out of approximately $35 million from cheap iPhones following a ban on them in Iran. The government’s ban on the registration of new iPhones created a black market for new phones in which customers have paid exorbitant prices, in some instances almost 3 times the market price for the phone. Kourosh called itself Iran’s “largest phone repair company” and promised to sell iPhones at a discounted price on the condition that it would deliver the phones in a few weeks. The main suspect, Amirhossein Sharifian, has fled to Turkey.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Jamaica</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are investigating <b>Warner Jamaica Media Limited</b> as Ponzi scheme that allegedly defrauded 50,000 Jamaicans out of millions of dollars.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are investigating an alleged Ponzi scheme run by <b>Aderemi Olufemi Adeoye</b>.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-40174604370677587502024-01-31T21:31:00.000-08:002024-01-31T21:31:28.278-08:00January 2024 Ponzi Scheme Roundu<p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for January 2024. At least 6 Ponzi schemes hit the news for the first time this month. There more than 41 years of prison sentences for Ponzi schemers, and 2 guilty pleas. The average age of the fraudsters was about 48 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rodney Dean Buckle</b>, 66, of Nevada, was sentenced to one year in jail and ordered to pay $283,000 in restitution in connection with a Ponzi scheme he ran through <b>Rodd United</b>, <b>Rodd U</b>, and <b>Rodd One</b>. <b>Rodd University</b> was a membership-based social club. Buckle promised investors a 100% return on their investments. He established phony businesses and told clients he would invest their funds for them.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Disman</b>, 40, of Texas, pleaded guilty to charges that he was running a $2.7 million Ponzi scheme. Disman admitted to defrauding at least 17 victims using his companies, <b>Dexter Development</b> and <b>Disman Energy</b>. The scheme involved supposed lucrative land development projects, which in reality were nonexistent.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gopala Krishan</b>, <b>Manivannan Shanmuga</b>, <b>Sakthivel Palani Gounder</b>, and <b>Nanban Ventures LLC</b> were the subject of a preliminary injunction and asset freeze in a case that the SEC had commenced last October. The defendants allegedly raised more than $89 million from more than 350 investors for investments in purported venture capital funds. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William Koo Ichioka</b>, 30, a Guam resident, was sentenced to 4 years in prison in California and ordered to pay a $5 million fine in connection with a cryptocurrency scheme run through <b>Ichioka Ventures</b>. Ichioka promised returns of 10% every 30 business days to more than 100 investors. Ichioka owes at least $21 million to investors and $40 million to family members.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Siddharth Jawahar</b>, 36, of Texas, was charged in Missouri in connection with an alleged Ponzi scheme run through his company, <b>Swiftare Capital</b>. Jawahar took in $35 million but only spent $10 million on investments. The scheme is believed to be related to <b>Blockchain Global</b>, an Australian blockchain startup that collapsed, with $58 million in claims. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Horst Jicha</b>, 64, a German national, was charged in connection with an alleged Ponzi scheme run through <b>USI Tech</b>, which held itself out as a European-based cryptocurrency investment platform. Investors were promised profits from purchasing BTC Packages or by earning commissions from referring others to purchase investment packages. Jicha, the CEO of USI Tech, promised investors an average of 1% daily returns. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sam Lee</b> aka <b>Xue Lee</b>, 35, an Australia, <b>Brenda “Bitcoin Beutee” Chunga</b>, 43, of Maryland, and <b>Rodney Burton</b> aka <b>Bitcoin Rodney</b>, 54, were charged in connection with an alleged $1.89 billion fraudulent cryptocurrency investment scheme run through <b>HyperVerse</b>. The online investment business used the names <b>HyperFund</b>, <b>HyperCapital</b>, <b>HyperNation</b>, and <b>HyperTech</b>. The scheme involved a non-existent bitcoin mining-based investment company and promised daily rewards of .5% to 1%. Chunga pleaded guilty and admitted to receiving at least $3 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Prosper E. Beyond Moore</b>, 27, of Georgia, and his entity, <b>Prosperity Investments & Solutions, LLC</b>, were charged by the SEC in connection with an alleged scheme offering unregistered offerings of securities. The scheme raised more than $1.4 million from over 60 investors, many oof which were members of Moore’s church. Moore represented that Prosperity had an exclusive investing and lending platform that generated up to 50% returns per month.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ahmet Neidik</b>, 64, of New Jersey, pleaded guilty to his role in an off-the-road-tires Ponzi scheme run by <b>John K. Eckerd, Jr</b>., 58, and <b>Jason E. Adkins</b>, 46. The scheme defrauded more than 50 investors out of $50 million. Investors were told that tires would be bought at a steep discount and resold to a buyer at a much higher rate. The defendants rarely bought or sold tires and when they did, they used the same tires for multiple deals.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kumar Arun Neppalli</b>, 57, of North Carolina, was sentenced to 3 years, 8 months and ordered to pay almost $1 million in restitution in connection with a Ponzi scheme that targeted the Indian-American community. Neppalli represented that he had connections to real estate developers in the Orange County area and that he would invest their money in real estate projects.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marco Ruiz Ochoa</b>, 35, of New Hampshire, was sentenced to 5 years in prison and ordered to forfeit $914,000 for his role in the <b>IcomTech</b> Ponzi scheme. The scheme was founded by <b>David Carmona</b> in 2018, and Ochoa served as the CEO until 2019. Ochoa, Carmona, along with other co-defendants, <b>Juan Arellano Parra</b>, <b>Moses Valdez</b> and <b>David Brend</b>, promised guaranteed returns from cryptocurrency trading and mining. A second company, <b>For-Count</b>, promised victims returns from purchasing crypto-currency-related investment products.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Richard Lee Ramirez</b>, 54, of California was sentenced to 7½ years in prison and ordered to pay about $5.5 million in restitution in connection with the Ponzi scheme run through <b>JMJ Capital Group</b>. Ramirez promised returns of between 10% and 30% from a variety of business ventures, including buying and reselling personal protective equipment, factoring accounts receivable, importing and selling furniture and refurbishing air conditioning units for cruise ships. More than $8.1 million was invested in the scheme that involved at least 34 victims.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darren Anthony Robinson</b>, 54, of Michigan, was indicted on charges that he operated a Ponzi scheme that stole $100 million from investors. Robinson operated a purported trading firm known as <b>QYU Holdings</b> run out of Panama and Cayman Islands. Robinson is on the run and has not yet been apprehended.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mark Scott</b>, 54, was sentenced to 10 years in prison in connection with the <b>OneCoin</b> cryptocurrency scheme. Scott was accused of laundering millions of dollars through OneCoin.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carl Smith</b> was the subject of a final judgment by the SEC against him in connection with a scheme that raised at least $3.7 million from at least 37 investors. The scheme was run through <b>Nanobeak Biotech Inc.</b> and its former CEO, <b>Jeremy Barbera</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Paul Horton Smith Sr.</b>, 59, of California pleaded guilty to charges that he ran a Ponzi scheme that lasted nearly 20 years and took $24 million from at least 200 investors. Smith ran the alleged scheme through <b>Northstar Communications LLC</b>, <b>Planning Services Inc.</b>, and <b>eGate LLC</b>. Smith represented that Northstar invested in real estate or the stock market but just invested money in a non-interest-bearing checking account,</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nicholas Trimble</b>, of Colorado, was charged in connection with an alleged $3 million Ponzi scheme run as a luxury watch resale operation. Trimble was supposedly buying and selling luxury watches and turning a profit, but the several watches he actually purchased constituted just a small part of the funds he solicited.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kenneth Charles Grace</b> was found dead in a motel on the day he was due to be sentenced in connection with the Ponzi scheme run through his investment fund, <b>Goldsky Global Access Fund</b>. Approximately $24 million was invested on promises that he could generate returns of up to 20%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darryl Evans</b>, 62, was sentenced to 8 years in prison following his conviction in connection with a scheme that he ran as a financial advisor. He told his clients that he was investing in algorithms and high-performing companies.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Estonia approved the extradition of <b>Sergei Potapenko</b> and <b>Ivan Turogin</b>, Estonian citizens, to the United States. The two are cryptocurrency entrepreneurs who ran a $575 million Ponzi scheme through <b>HashFlare</b> and Polybius Bank. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><u><b>Guam</b></u></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Julien Abat Weymouth</b>, 21, was sentenced to 2½ years in prison in connection with a scheme that involved the exchanging and transferring of cryptocurrency. Assets worth about $13 million, mostly in bitcoin, were seized.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nikhil Mahajan</b>, 39, was arrested in connection with a scheme run through Singapore-based <b>Variable Tech</b>. The scheme brought in 40 bitcoins and was run with <b>Ajay Bhardwaj</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities flagged the following investment programs as potential Ponzi schemes: <b>House of Forex</b> / <b>H. Flores Business Consultancy Services</b>; <b>Foto Trading International</b>; <b>HarvestCTMall</b>; <b>Crypace Limited/Crypace Financial Consultancy Services</b>; <b>DNKC Corp.</b>; <b>Gainz Philippines</b>; <b>S&M Ventures</b> and <b>Salon de Alexis</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned against investing in <b>The Tipsy Tavern</b>, a bar and events-themed Ponzi scheme. The company is operated by <b>Danielle Lance Alarcon</b>, and investors were promised 120% per year.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Netherlands</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">A 23-year-old student in Hengelo was accused of running a Ponzi scheme that defrauded over 100 victims out of millions of euros in connection with a cryptocurrency scheme. He promised returns of up to 50% from his crypto bank. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Taiwan</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Pan</b> was arrested in connection with his involvement in an alleged cryptocurrency scam found through <b>ACE Exchange</b>. The trading platform is controlled by <b>Michael C.H. Wang</b>. Fourteen people were arrested in total in connection with the scheme, including <b>Spencer Lin</b> who was sentenced to 8 years in prison last year but just arrested. The losses are estimated to exceed $32 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Turkey</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kivanç Talu</b> and his wife <b>Beril Talu</b> were arrested at the airport on allegations that they were running a Ponzi scheme that involved 150 million Turkish Liras ($5.1 million). They promised returns of one and a half times within 40 days through a venture that involved creating advertising films for major corporations.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Zimbabwe</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>E-creator</b>, a global e-commerce company, was exposed as a Ponzi scheme that lured investors with promises of high returns. Masterminds <b>Thomas</b> and <b>Zhao</b> used sim boxes with sim cards to manage transactions and used cryptocurrency to siphon off funds.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-3075944504429471972024-01-07T11:07:00.000-08:002024-01-07T11:07:00.888-08:00 The 2023 Year-End Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The Ponzi Scheme Blog tracks Ponzi scheme news reported on new Ponzi schemes, guilty pleas, criminal convictions, prison sentences and other relevant Ponzi scheme news. Every Ponzi scheme cannot be known, as many slip into the night quietly without ever even being reported to criminal or regulatory authorities, and many simply don’t make the news. As such, it is impossible to capture all of the news.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">The unofficial tally of Ponzi scheme news in 2023, even knowing it is incomplete, is itself troubling in its scope. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">•<span style="white-space: pre;"> </span>At least 115 new Ponzi schemes were reported in the news in 2023</span></p><p style="text-align: justify;"><span style="font-family: verdana;">•<span style="white-space: pre;"> </span>Well over $4.5 billion was lost by victims in Ponzi schemes (49 of the 115 new schemes did not report dollar figures, so the actual number might well be double that amount, or more)</span></p><p style="text-align: justify;"><span style="font-family: verdana;">•<span style="white-space: pre;"> </span>At least 32 people pleaded guilty to running Ponzi schemes</span></p><p style="text-align: justify;"><span style="font-family: verdana;">•<span style="white-space: pre;"> </span>At least 7 were convicted following criminal trial</span></p><p style="text-align: justify;"><span style="font-family: verdana;">•<span style="white-space: pre;"> </span>The average age of the Ponzi schemer is about 49 years old (mid-life crisis?)</span></p><p style="text-align: justify;"><span style="font-family: verdana;">All of this is a reminder to stay on high alert and conduct independently verifiable due diligence before investing. For sample questions to ask and due diligence ideas, check out <i><a href="https://www.amazon.com/Ponzi-Proof-Your-Investments-Investors-Fraudulent-ebook/dp/B00GVDPTAG/ref=sr_1_1?crid=1NBOGSZES807L&keywords=ponzi+proof+your+investment&qid=1704424264&sprefix=ponzi+proof+your+investment%2Caps%2C157&sr=8-1" target="_blank">Ponzi-Proof Your Investments: An Investor’s Guide to Avoid Investing in Ponzi Schemes and Other Financial Scams</a></i>.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-30167559055768323742023-12-31T10:48:00.000-08:002023-12-31T10:48:29.180-08:00December 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for December 2023. Eleven Ponzi schemes hit the news for the first time this month. There were 3 life sentences imposed along with more than 37 years of prison sentences for Ponzi schemers, and 2 guilty pleas were entered. 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. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Henry Abdo</b>, 46, and Florida-based <b>Titanium Capital LLC</b> were charged by the SEC with operating a Ponzi scheme that raised at least $5.3 million. <b>Carol Ann Barsh</b> was also sued for her role in soliciting investors, and Abdo’s wife, <b>Ganna Migulina</b>, and relative <b>Elias Abdo</b>, were also named in the complaint. They misrepresented that funds would be invested in a “<b>Multi Currency Investment Fund</b>” backed by a proprietary currency exchange. They claimed that the investment had never lost money and generated up to 10% compounded interest for a five-year investment. Abdo was also criminally charged and has pleaded not guilty.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alexandria Porter Bovee</b> aka <b>Aia Montgomer</b> aka <b>Alexandria Jo-Marie Porter</b>, 37, of Nevada, was barred by FINRA due to her ties to <b>Integrated National Resources</b> dba <b>WeedGenics</b>, a cannabis company that was operating a Ponzi scheme. Bovee was named as a relief defendant in the SEC’s case against WeedGenics and its operators <b>Rolf Max Hirschmann</b> aka <b>Max Bergmann</b>, 52, and <b>Patrick Earl Williams</b>, 34. The scheme raised about $61.7 million from about 350 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen Burton</b>, 58, pleaded not guilty to running an alleged Ponzi scheme with <b>James Wellesley</b>, 56, through <b>Bordeaux Cellars</b>. Burton had been extradited to the United States from Morocco and Wellesley remains in extradition proceedings in Britain. The two claimed that they brokered loans to high-net-worth wine collectors and the loans would be backed by wine stored by Bordeaux Cellars. Nearly $100 million was invested in the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Carmona</b>, 40, of New York, pleaded guilty to charges relating to his Ponzi scheme known as <b>IcomTech</b>. The scheme involved a cryptocurrency scam the involved purported mining and trading. <b>Marco Ruiz Ochoa</b>, 35, pleaded guilty earlier this year. Other co-defendants are <b>Juan Arellano</b>, <b>Moses Valdez</b>, <b>David Brend</b>, and <b>Gustavo Rodriguez</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Maria Dulce Pino Dickerson</b> aka <b>Dulce Pino</b> was sued by dozens of investors accusing her of running a Ponzi scheme through <b>Creative Legal Fundings</b>. Dickerson promised 10% returns from investments in law activities. The scheme targeted the Filipino community. Dickerson is also part of an IRS criminal investigation.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tochukwu Abel Edeh</b>, 33, of Nigeria, was sentenced to 3½ years in prison and ordered to pay over $2.5 million in restitution in connection with a Ponzi scheme involving both a used car dealership and cryptocurrency located in Nigeria. Edeh laundered the funds along with co-conspirators, though the U.S. <b>Charles Ochi</b> was previously sentenced to 5 years in prison after pleading guilty to the scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Diana Mae Fernandez</b>, 37, was charged by the SEC on allegations that she was running a cryptocurrency Ponzi scheme. Fernandez is a self-described “entrepreneur” and promised guaranteed returns as high as 63% from what she represented were investments in cryptocurrency, private and publicly traded companies, and luxury real estate. She raised about $364,000 from at least 20 investors through her entities <b>The Self-Made Success</b> and <b>Diana Mae K, LLC</b>. Fernandez did not invest the funds as promised but used them to pay for her living expenses, a lavish lifestyle, and to make Ponzi payments to earlier investors. She told investors she had more than 15 years of investing experience and had raised $100 million in 25 countries. Fernandez had been criminally charged earlier this year.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Horst Jicha</b>, 64, a German national, was arrested on charges that he masterminded a cryptocurrency Ponzi scheme run through <b>USI-Tech</b>, which is short for <b>United Software Intelligence</b>. The company was purportedly incorporated in the United Arab Emirates and claimed to make “cryptocurrency mining and trading accessible to the average retail investor through its online platform.” The scheme promised 140% returns over 140 days. Jiha had $94 million worth of Bitcoin under his control at the time of his indictment.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Adrian Kawuba</b>, 33, of Massachusetts, pleaded guilty to charges relating to a scheme in which he promised returns from investments in short-term financing of sports ventures in Africa. The scheme involved at least $2.3 million in investor funds. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Josh Link</b>, 30, of Arizona, Jed Wood, 62, of Texas, and their company, <b>Agridime LLC</b>, were sued by the SEC which obtained an asset freeze and the appointment of a receiver. The SEC alleged that Agridime, which claims to specialize in meat sales, distribution, and animal supply chain management, was engaged in a Ponzi scheme. The defendants promised returns of 15% to 32% from raising cattle and raised at least $191 million for more than 2,100 investors. On its website, Agridime states the company "is an online cattle and agricultural products brokerage company that utilizes a proprietary trading platform to connect buyers and sellers."</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Motty Mizrahi</b>, 51, of California, was sentenced to 9 years in prison in connection with a Ponzi scheme that defrauded 40 investors out of $6 million. Mizrahi’s brother, <b>Sassi Misrahi</b>, 58, was convicted earlier in the year, sentenced to 7 years and 3 months, and ordered to pay $4.4 million in restitution. They ran the scheme through <b>MBIG Company</b> and guaranteed returns of 2% to 3% monthly as well as annual returns of 30% to 102%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew Piercey</b>, 27, was sentenced to 11 years and 3 months in prison in connection with a $35 million Ponzi scheme run through his companies, <b>Family Wealth Legacy</b> and <b>Zolla</b>. When Piercey’s fraud first came to light, he unsuccessfully attempted to evade the FBI in an underwater submersible.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Gilbert Saffron</b> aka <b>David Gilbert</b> aka <b>Dave Gabe</b> aka <b>Blue Wizard</b> aka <b>Bitcoin Yoda</b>, 51, of Australia, and <b>Vincent Anthony Mazzotta Jr</b>., 52, of California, were charged on allegations that they were running a crypto Ponzi scheme. More than $25 million was invested and investors were promised profits from trading programs that supposedly used an artificial intelligence automated trading bot. The investment programs operated under various names, including <b>Circle Society</b>, <b>Bitcoin Wealth Management</b>, <b>Omicron Trust</b>, <b>Mind Capital</b>, and <b>Cloud9Capital</b>. Saffron and Mazzotta created a fictitious entity called the <b>Federal Crypto Reserve</b> and solicited investors to pay the Federal Crypto Reserve to investigate and recover their losses in the investment programs. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rodolfo Villareal</b>, 52, of California, pleaded not guilty to charges that he stole about $282,000 in an alleged Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen Rae</b>, 63, was sentenced to 7 years in prison in connection with a £2.1 million Ponzi scheme to which he had previously pleaded guilty. The scheme defrauded 16 investors. Rae represented that he was a successful financial advisor and director of <b>Mason Morton Ltd</b>. Instead of investing the money, Rae spent it on himself and his family, living a lavish lifestyle. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ajeet Maurya</b>, 41, a social influencer, was arrested on allegations that he was running a Ponzi scheme. Maurya is reported to have 2 wives, 9 children and 6 girlfriends.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ramendu Chattophyay</b> was taken into custody in connection with an alleged Ponzi scheme run through <b>Tower Group</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Simpy Bhardwaj</b> aka <b>Simpy Gaur</b> was arrested on charges that in connection with the bitcoin Ponzi scheme known as <b>Gain Bitcoin</b> Ponzi scheme through <b>Variabletech Pte Ltd</b>. The scheme was run with her husband, <b>Ajay Bharadwaj</b>, and her late brother-in-law, <b>Amit Bharadwaj</b>. The scheme involved over 100,000 investors and promised monthly returns of 10%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Prince Kumar</b>, the director of <b>Digital Revolution Technologies Limited</b>, was sentenced to 7 years in prison for his role in a Ponzi scheme that that defrauded hundreds of investors by promising false returns from digital products.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Barmise Samson Ajetunmobi</b> and his company, <b>Imagine Global Solution Limited</b>, were charged on allegations that that they were running a Ponzi scheme involving N15 billion. Ajetunmobi pleaded not guilty to the charges.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joel Apolinario</b>, <b>Cristobal R. Baradad</b>, and <b>Joji A. Jusay</b> were sentenced to life imprisonment in connection with the <b>Kapa Community Ministry International Inc</b>. Ponzi scheme. Investors were promised 30% monthly returns on their investments. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned the public against investing in <b>Salon De Pamplona</b> which is soliciting investments without required licenses. The investment program is operated by <b>Ramillo Pamplona Pumbaya</b>, and returns were promised of 15% after 30 days.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Africa</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jacobus Geldenhuis</b> was fined $143 million for running a Ponzi scheme, he was previously barred from selling financial services or acting as an advisor. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nattasilp Chaiwisit</b>, 48, and his spouse <b>Nattawanon</b>, 41, were held on charges that they allegedly ran a Ponzi scheme that defrauded 73 people out of about 54 million baht.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Turkey</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Secil Erzan</b>, a bank manager of a Denisbank AS branch, was accused of orchestrating a $44 million Ponzi scheme. Erzan promised returns of 250%, and authorities alleged that bags of cash were changing hands at candy shops.</span></p><div><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-50674397083273171142023-11-30T14:01:00.000-08:002023-11-30T14:01:43.593-08:00 November 2023 Ponzi Scheme Roundup<p>Below is a summary of Ponzi scheme activity reported for November 2023. Nine new Ponzi schemes hit the news this month and there were more than 35 years of prison sentences imposed on Ponzi schemers and 4 new guilty pleas. The average age of the fraudsters was about 43 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </p><p><b>Stanislav Bril</b>, 40, aka <b>Stan Bril</b> aka <b>Slava Bril</b> of Pennsylvania pleaded guilty to running a scheme that stole over $6 million of federal pandemic relief. The scheme was run through <b>Mortgage Consultant Group</b> and took in more than $1 million from investors, promising returns from loans on real estate and construction projects. Bril also fraudulently obtained funds from government programs through Mortgage Consultant Group as well as <b>The Bril Group</b> and <b>SAB Services LLC</b>.</p><p><b>Glen “Big Baby” Davis</b>, 37, and <b>Will Bynum</b>, 40. were convicted in connection with a scheme that defrauded an insurance plan for NBA players and their families. <b>Terrence Williams</b> was sentenced in August to 10 years in prison as the ringleader of the scheme.</p><p><b>Maria Dulce Pino Dickerson</b> and her business <b>Creative Legal Services</b> were sued by authorities in California accusing her of running a Ponzi scheme. Dickerson is alleged to have made misrepresentations to investors and targeted the Filipino community.</p><p><b>Irina Dilkinska</b>, 42, pleaded guilty to charges in connection with the $4 billion <b>One Coin</b> cryptocurrency scheme. OneCoin mastermind <b>Ruja Ignatova</b> is still at large. Dilkinska helped a lawyer launder more than $400 million through a series of fake Cayman Island investment funds.</p><p><b>Garrett Elder</b>, 30, of Alaska, was accused of running a Ponzi-like scheme that allegedly defrauded at least 177 investors. Elder ran two businesses through <b>Tycoon Trading, LLC</b> and <b>Daily Bread Fund, LLC</b> that brought in $30 to $34 million, of which about $25 million was allegedly lost. </p><p><b>Anthony Farrer</b>, 35, of California, was charged in connection with a Ponzi-like scheme that he ran through his watch company, <b>Timepiece Gentleman</b>. Farrer told clients he would sell their watches on consignment and keep a commission, but Farrer instead sold the watches and kept the proceeds for himself. Other clients would wire money to purchase watches, and Farrer would send a different timepiece than what they requested. He stole about $3 million from at least 20 victims.</p><p><b>Phillip Galles</b>, 57, of Illinois, and his entities, <b>Tyche Asset Management LLC</b>, <b>Tyche Master Fund Ltd</b>, <b>Tyche Asset Trade LLC</b>, <b>Tyche Offshore Fund Ltd</b>., <b>Tyche Onshore Fund LP</b>, <b>Tyche PML Master Fund Ltd</b>., <b>Tyche PML Onshore Fund LP</b>, <b>Tyche Onshore Fund GP LLC</b>, and <b>Tyche Asset Trade LLC</b> had a judgment entered against them for more than $20 million in favor of the CFTC. The CFTC has sued the defendants earlier this year alleging that they were running a Ponzi scheme that fraudulently solicited funds into a commodity pool. Galles promised returns of more than 200% annually from supposed sophisticated technology and strategies to trade commodity futures and options. About 65 victims suffered losses totaling more than $5.3 million.</p><p><b>Cedric Griffin</b>, 47, remains on the run following the filing of a complaint by the SEC in May that accused him of defrauding 103 investors out of $5.9 million. Griffin ran the scheme through <b>G8 Equity</b> and <b>G8 RE Capital</b>. The SEC was granted additional time to locate Griffin.</p><p><b>Alaa Mohamed Hattab</b>, 35, pleaded guilty to charges that he conspired with <b>Eliyahu “Eli” Weinstein</b> to run a $230 million Ponzi scheme. Two other conspirators, <b>Christopher Anderson</b>, 47, and <b>Richard Curry</b>, 36, previously pleaded guilty in connection with the scheme.</p><p><b>John Karony</b>, 27, <b>Kyle Nagy</b>, 35, and <b>Thomas Smith</b>, 35, were arrested on charges that they were running a Ponzi scheme through <b>SafeMoon</b> and the SafeMoon crypto token. The scheme brought in over $8 billion.</p><p><b>Francius Marganda</b>, an Indonesian national, was extradited from Singapore to face charges in connection with an alleged Ponzi scheme that targeted the Indonesian and Indo-American community. Marganda ran the scheme through <b>Air Travel Ticketing Corp</b>, a discount airline tickets company in New York, as well as <b>MH Lux & Beauty Inc</b>., a purported luxury goods company in California. Two sham programs, called <b>Easy Transfer and Global Transfer</b>, were represented to be short-term, high-interest loan programs, and investors invested more than $23 million with promises of returns as high as 200%.</p><p><b>John A. Masanotti</b>, 40, and his company, <b>Middlesex Mortgage Group, LLC</b>, were charged by the SEC in connection with an alleged Ponzi-like scheme. The scheme took in at least $5.9 million and promised returns from a pooled investment fund called the <b>Middlesex Fund</b> or the <b>MMG Fund</b>.</p><p><b>Sassi Mizrahi</b>, 58, of California, was sentenced to 7 years and 3 months and ordered to pay more than $4.4 million in restitution in connection with a $7 million scheme that defrauded at least 40 investors. His brother, <b>Motty Mizrahi</b>, 51, pleaded guilty in January. The Ponzi scheme was run through <b>MBIG Company</b>, targeted the Orthodox Jewish Israeli community, and promised returns of 2% to 3% per month, with annual returns ranging from 30% to 102%. The funds were not invested, however and were placed in the personal trading accounts of Motty Mizrahi. </p><p><b>Long Nguyen</b>, 35, of California pleaded guilty to charges relating to a Ponzi scheme that defrauded at least 20 people out of about $2 million. Nguyen told people he was a billionaire and that he was creating a hedge fund for investments in companies that had not yet made an initial public offering. He also promised returns from a real estate investment trust that he said he managed. </p><p><b>Franklin Ray</b>, 52, of Michigan, was sentenced to 17 years and 8 months in connection with a fraudulent scheme involving $40 million and about 275 investors. He ran the scheme through <b>CSA Business Solutions LLC</b>, representing that he had 4,704 trucks and 4,909 drivers when in reality he only had two trucks and four drivers. The investor funds were supposed to be used to purchase over 2,000 trucks. He promised 77% returns over a seven-year period. The scheme was one of four separate fraudulent schemes run by Ray in a two-year period.</p><p><b>Jon Darrell Seawright</b>, 51, was sentenced to a year and a day in prison and ordered to pay $977,000 in restitution following his guilty plea in connection with the Ponzi scheme run through <b>Alexander Seawright Timber Fund LLC</b>. Seawright ran the scheme with Ted Brent Alexander. They promised returns from the loaning of funds to a timber broker to buy timber rights from landowners and then sell the rights to lumber mills at a higher price. Seawright is a former Baker Donelson partner. </p><p><b>Craig Sherman</b>, 81, of Florida, was sentenced to two years in prison in connection with a Ponzi scheme. Sherman promised returns of between 6% and 8% in connection with a real estate Ponzi scheme. The scheme brought in close to $7 million.</p><p><b>Jake Soberal</b>, 39, and <b>Imma Olguin Jr</b>., 42, of California, were charged by the SEC in connection with an alleged scheme run through <b>Bitwise Industries, Inc</b>. The scheme raised approximately $70 million from investors. Criminal charges were also filed against Soberal and Olguin in connection with the alleged scheme. They pleaded not guilty to the charges. That they had altered bank statements to inflate the amount of cash that Bitwise had in its account.</p><p><b>Jeffrey H. Tamkin</b>, of California, was indicted on charges that he operated an $8 million Ponzi scheme. Tamkin ran the scheme through <b>Tamkin Development Corporation</b> and the <b>Public Facilities Investment Corporation</b>, promising returns from the development of buildings for public agencies.</p><p><b>Albert Alejandro Tinoco</b>, 27, of Texas, was sentenced to 7 years in prison in connection with a $9 million Ponzi scheme. Tinoco claimed he was investing funds into funds dealing with cryptocurrency and foreign exchange markets, but he only invested less than half of a percent of the investors’ funds.</p><p><b>INTERNATIONAL PONZI SCHEME NEWS </b></p><p><b><u>England</u></b></p><p><b>Christopher Hamilton</b>, 64, avoided extradition to the United States in connection with the <b>OneCoin</b> cryptocurrency Ponzi scheme. </p><p><b>Spencer Steinberg</b>, 46, <b>Michael Strubel</b>, 54, and <b>Jolan Saunders</b>, 40, were sentenced to six years, seven years, and seven years, respectively, in connection with a Ponzi scheme run through <b>Saunders Electrical Wholesalers Limited</b>. They claimed they had won a contract to supply electrical goods to the Olympic Village ahead of the 2012 London games. About £78 million was put into the scheme by about 91 investors.</p><p><b><u>India</u></b></p><p><b>Sushil Kumar Tudu</b>, the head of <b>Solar Techno Alliance</b>, was arrested for his role in the alleged cryptocurrency Ponzi scheme. </p><p>Authorities are investigating an alleged Ponzi scheme run through <b>Universal Trading Solutions</b>.</p><p>Authorities busted a cryptocurrency Ponzi scheme called “<b>Yes World Crypto Token</b>” aka <b>Crypto Coin</b>. <b>Sandeep Choudhary</b>, 40, was arrested in connection with the scheme, along with <b>Basant Pradhan</b> and <b>Manoj Patnaik</b>. Choudary was arrested as he was trying to escape from India to Dubai. The amount involved is estimated to be more than Rs. 200 crore.</p><p><b>Prakash Raj</b> was summoned in connection with an alleged Ponzi scheme linked to <b>Pranav Jewellers</b>. The scheme promised returns from a gold investment scheme involving 100 crore.</p><p><b><u>South Africa</u></b></p><p><b>Brandon Naicker</b> aka <b>Muruvan Egambaram</b> and <b>Abraham “Jason” Pillay</b> were charged in connection with a scheme run through insurance brokerage firms called <b>Infiniti</b> and <b>Branson Capital</b>. They allegedly defrauded investors out of R2 million.</p><p><b><u>Thailand</u></b> </p><p><b>Suteewan “Baitoey” Thaweesin</b>, 35, was released on bail following her arraignment along with her husband <b>Pattanapon Minthakin</b> aka <b>DJ Man</b> in connection with the <b>Forex-3D</b> Ponzi scheme. Forex 3D claimed to be an online dealer in foreign exchange, but thousands of investors were defrauded out of about 2 billion baht. The scheme was masterminded by <b>Apiruk Kothi</b>, who was arrested in 2021.</p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-84904004886889903652023-10-31T17:05:00.001-07:002023-10-31T17:05:36.923-07:00October 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for October 2023. While 4 new Ponzi schemes came to light this month, there were more than 49 years of prison sentences imposed on Ponzi schemers and there were 5 guilty pleas. 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. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brett Barber</b>, 44, of California, pleaded guilty to charges relating to a $17 million house-flipping Ponzi scheme. Barber ran the scheme through <b>BNZ Capital One</b> which promised returns between 8% and 10% and later through <b>National American Capital</b> after Barber closed BNZ because authorities were investigating. Another owner of BNZ Capital, <b>Louis Zimmerle</b>, 62, also pleaded guilty.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darrin Blaine</b>, of Indianna, was the subject of a restraining order in connection with an alleged Ponzi scheme involving the sale of securities. Blaine, an attorney, alleged took $680,000 from investors through his companies, <b>Laser Tech Investment Club</b> and <b>Akamai Physics Inc</b>. Another company, <b>Porrima Photonix Inc</b>, was also used in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas Brenner</b>, 60, of Ohio, was sentenced to 10 years and 5 months in prison and ordered to pay more than $3 million in restitution in connection with his role in a $102 million Ponzi scheme run through <b>United RL Capital Services</b>. The scheme defrauded more than 600 investors, and Brenner solicited clients to invest, promising them their money back with interest after 3 years. Brenner previously pleaded guilty to the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jason Dodd Bullard</b>, 59, of Minnesota, was sentenced to 4 years and 3 months in connection with a Ponzi scheme run through <b>Bullard Enterprises LLC</b> that defrauded approximately 100 victims out of over $3.1 million. The scheme involved a foreign currency investment program. <b>Angela Romero-Bullard</b> had previously been sued along with Bullard by the SEC in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nayeen Choudhury</b>, 27, pleaded guilty to charges relating to a $9.5 million Ponzi scheme run through his company, <b>Dream Venture Capital Group</b>. Choudry promised high rates of return from supposed investments into trading options, but Choudry instead suffered losses and lost about $5 million in options trading in 2022 and 2023. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joseph W. Floyd, IV</b>, 76, of North Carolina, was sentenced to 6½ years in prison and ordered to pay more than $10 million in restitution in connection with a $20 million Ponzi scheme run through <b>Floyd’s Insurance Agency</b>. Floyd’s brother, <b>William F. Floyd, Jr</b>., was previously sentenced. The scheme offered returns to 150 investors through a loan program that promised returns of 6% to 19% and represented that is was a safe investment. </span></p><p style="text-align: justify;"><b style="font-family: verdana;">Scott Hughes</b><span style="font-family: verdana;">, 47, </span><b style="font-family: verdana;">Cecilia Millan</b><span style="font-family: verdana;">, 41, and </span><b style="font-family: verdana;">Karina Chairez</b><span style="font-family: verdana;">, 47, were sentenced in connection with the AirBit Club Ponzi scheme after they pleaded guilty. Hughes received an 18-month sentenced for laundering approximately $18 million. Millan received 5 years and Chairex received one year and one day. Co-founder </span><b style="font-family: verdana;">Pablo Renato Rodriquez</b><span style="font-family: verdana;"> was sentenced to 12 years in prison last month. </span><b style="font-family: verdana;">Gutemberg Dos Santos</b><span style="font-family: verdana;">, 48, co-cofounder of </span><b style="font-family: verdana;">AirBit Club</b><span style="font-family: verdana;">, also pleaded guilty in connection with the cryptocurrency Ponzi scheme. </span><b style="font-family: verdana;">Jackie Aguilar</b><span style="font-family: verdana;">, who pleaded guilty, reportedly passed away a few weeks prior to sentencing. AirBit Club guaranteed daily returns from crypto mining and trading and brought in $100 million of investors’ money.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeffrey Ikahn</b> aka <b>Jeff Hill</b> aka <b>Jeffrey Santulan</b>, 41, of California, and <b>Safeguard Metals LLC</b> consented to an order finding them liable for a $68 million scheme that defrauded elderly investors. The scheme involved precious metals in which overpriced silver coins were sold to investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Paul Kimmins Lebo</b>, 41, of Ohio, was sentenced to 4 years in prison and ordered to pay $635,000 in connection with a Ponzi scheme that defrauded about 100 people. Lebo promised equity ownership if they invested in his non-operational hedge fund called <b>Paul Kimmins Investments (PKI), LP</b> and promised that investors that their deposits were fully refundable. He previously pleaded guilty to the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gopala Krishnan</b> aka <b>GK</b>, <b>Manivannan Shanmugam</b>, and <b>Sakthivel Palani Gounder</b>, along with their company, <b>Nanban Ventures LLC</b>, were sued by the SEC on allegations that they were running a $130 million fraudulent scheme. The scheme allegedly targeted the Indian American community and involved more than 350 investors. Investors were promised returns of more than 100% from options trading.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ari Lauer</b>, 59, of California, was charged in connection with the DC Solar Ponzi scheme. He has already been sued by the SEC on charges that he aided and abetted the Ponzi scheme run by <b>Jeffrey Carpoff</b>, 52, and <b>Paulette Carpoff</b>, 49. They represented that DC Solar made solar powered mobile generators, and over $912 million was paid into the scheme. Lauer is a lawyer who allegedly assisted in creating documents to hide transfers and conceal the fraud. Jeffrey Carpoff was previously sentenced to 30 years in prison, Paulette Carpoff was sentenced to 11 years, 3 months, and <b>Joseph Bayliss</b>, 48, was sentenced to 3 years in prison.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Long Nguyen</b>, 35, of California, pleaded guilty to charges relating to a Ponzi scheme that defrauded at least 20 people out of almost $2 million. Nguyen falsely claimed he was a billionaire, that he had access to pre-IPO investment opportunities, and that he managed a real estate investment trust.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darrant Robinson</b> and <b>QYU Holdings Inc.</b> were sued by the CFTC on allegations that they ran a $7.1 million scheme that defrauded at least 30 people into investing in a commodity pool. The CFTC alleges that instead of trading on commodity interests, QYU and Robinson instead deposited the funds into QYU’s corporate bank account and used the money to pay Robinson’s personal expenses including luxury cruises, luxury vehicles, and property purchases. Robinson allegedly created fake trading data and provided false account statements to show consistent profits for the participants. </span></p><p style="text-align: justify;"><b style="font-family: verdana;">Christopher John Pettit</b><span style="font-family: verdana;">, 56, of Texas, pleaded guilty to charges relating to a Ponzi scheme that defrauded investors out of up to $65 million. Pettit is lawyer who engaged in Ponzi-like conduct by taking money from his clients and persuading them to invest in his firm, </span><b style="font-family: verdana;">Chris Pettit and Associates, PC</b><span style="font-family: verdana;">. Pettit promised returns from his firm which provided services such as estate planning, investments and real estate transactions, but he instead used the funds for his personal benefit. Pettit claimed the funds would be used for trustee accounts, high-percentage bonds and 1031 real estate exchanges. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Volodimyr Pigida</b>, 49, of Florida, was arrested after failing to appear for his sentencing hearing in connection with a $22 million Ponzi scheme that caused $11 million in losses. Pigida and his wife, <b>Marina Bondarenko</b>, operated a "work-at-home" email scheme named <b>Trend Sound Promoter</b>. Pigida was convicted in 2022. Bondarenko pleaded guilty and was sentenced to 3 years and two months in prison in 2019.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Cesar Humberto Pina</b>, 45, of New Jersey, was charged in connection with an alleged Ponzi scheme. Pina’s wife, <b>Jennifer Pina</b>, is also accused in connection with the scheme. The scheme promised returns of 20% to 45% from the alleged purchase, remodel, and sale of certain real estate projects. Raashaun Casey aka DJ Envy was Pina’s business partner and hosted real estate seminars with Pina, but has denied any involvement in the alleged fraudulent scheme. DJ Envy is not named in the criminal charges and has not been accused of any criminal wrongdoing. Pina owned <b>Whairhouse LLC</b> and <b>FromStart2Flip LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carl Ruderman</b>, 82, pleaded guilty to charges in connection with the <b>1 Global Capital LLC</b> Ponzi scheme. Ruderman raised about $330 million for the scheme. Co-conspirators who have previously pleaded guilty are <b>Alan Heide</b>, 65, <b>Jan Atlas</b>, 78, <b>Steven Allen Schwartz</b>, 78, and <b>Andrew Ledbetter</b>, 81. 1 Global promised returns from pay day loans to small businesses at high interest rates.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Abner Tinoco</b>, 27, of Texas, was sentenced to 7 years in prison in connection with a Ponzi scheme in which he solicited approximately $9 million into funds dealing with cryptocurrency and foreign exchange markets. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Wayne Williams</b>, 48, of Florida, pleaded guilty to charges relating to a Ponzi scheme run through <b>Highguard Capital</b>, <b>Guardian Opportunity Fund</b>, and <b>Guardian Opportunity Management</b>. Over $16 million was invested into the scheme that promised returns from investments in the fund. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>April Vuong</b> and <b>Hao Quach</b> were permanently banned from the capital markets in connection with their fraud convictions relating to a $5.2 million Ponzi scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>R Sivakumar</b>, 57, was arrested in connection with an alleged Ponzi scheme run through <b>Winstar India City Developers</b> that defrauded 1,686 investors out of 74 crore.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sangram Keshari Patra</b> was sentenced to three years in prison in connection with a scheme run through <b>Kolkata Weir Industries Ltd</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>BBH Films Nigeria Limited</b> has been accused of running a Ponzi scheme that may have defrauded over 2.7 million Nigerians. BBH claims to be a Nigerian arm of a U.K.-based company, <b>BBH Global</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities have flagged <b>99 Dragons PH</b> as a Ponzi scheme. The scheme promised guaranteed profits of 125% to 200% in 10 to 30 days.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Africa</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Patrick Stapleton</b>, 66, received a 10-year prison sentence for his role in the Ponzi scheme run through his company, <b>Dynamic Group CC</b>. Stapleton and his son, Michael Stapleton, defrauded factor workers by persuading them to invest in “research” about developing an off-road mining vehicle and their paint company, <b>Umbala Paints</b>. Michael previously pleaded guilty and is serving a 5 year sentence.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Uganda</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities have received over 80 complaints from victims of the <b>Capital Chicken</b> Ponzi scheme. The fund promised a 15% monthly profit for amounts invested in the chicken business. Key suspects <b>Pius Wamanga</b> and <b>Ernest Sempebwa</b> are believed to have fled the country.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-43455948775344828782023-09-30T16:26:00.000-07:002023-09-30T16:26:34.936-07:00 September 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for September 2023. At least 13 new Ponzi schemes came to light this month. More than 94 years of prison sentences were imposed on Ponzi schemers, and the average age of the fraudsters was about 49 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Monise François Bien Aimé</b> of Florida and her company <b>MFB 111 Investment LLC</b> were charged by the SEC in connection with an alleged $1.8 million Ponzi scheme that targeted the Haitian American community. The scheme ran from 2021 to 2022 and defrauded at least 170 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen I. Bailey</b> and his companies, <b>Sapphire Exploration LLC</b> and <b>Harris Exploration, Inc.</b>, were charged by the SEC in connection with an alleged oil and gas Ponzi-like scheme that misappropriated $5 million of the $7.8 million raised from investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bin Hao</b>, 48, and his company, <b>Qidan LLC</b>, a Virginia limited liability company, were charged by the SEC in connection with an alleged fraudulent scheme that raised approximately $10.3 million from at least 60 investors. The scheme, which promised returns of 8% to 25%, targeted the Chinese-American community predominantly in Virginia and Maryland. Investors were promised returns from a Miami-based real estate company.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gary J. Dragul</b>, 60, of Colorado, was sentenced to 120 days in jail in connection with a scheme run through <b>GDA Real Estate Services</b>. Dragul pleaded guilty earlier this year. The scheme misrepresented that returns would be paid from a shopping center project. <b>Marlin Hershey</b> and <b>Dana Bradley</b> were also charged in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joe Firmage</b> was sued on allegations that he was running a Ponzi scheme involving more than $25 million. Firmage represented that he had devised a new aerospace propulsion technology concept and needed financing for the lab operations until the government contracts were ready to be disbursed.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tyler G. Gallagher</b>, <b>Leah Donoso</b>, and their company, <b>Regal Assets LLC</b>, were charged by the CFTC and the California Department of Financial Protection and Innovation in connection with an alleged fraudulent $21 million scheme. Regal Assets is a California-based precious metals dealer, and the defendants are accused of diverting funds intended for the purchase of precious metals to pay personal expenses.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Karl Sebastian Greenwood</b>, 46, the co-founder of the <b>OneCoin</b> cryptocurrency Ponzi scheme, was sentenced to 20 years in prison. His partner, <b>Ruja Ignatova</b>, 43, remains at large. OneCoin began in Bulgaria and brought in more than $4 billion from at least 3.5 million people between 2014 and 2016. Greenwood personally made $300 million from the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pavel Ramon Ruiz Hernandez</b> aka <b>Pavel Ruiz</b>, 30, of Florida, was sentenced to 9 years and 2 months in prison in connection with a Ponzi scheme run through <b>MJ Capital Funding LLC</b>. Ruiz solicited funds and promised returns from the funding merchant cash advances, a type of short-term financing used by small and medium-sized businesses. Ruiz brought in over $42.9 million into the scheme that involved $190 million. The MJ Capital scheme was run by <b>Johanna Garcia</b> who has been charged by the SEC. The SEC also sued <b>Steven Fernandez</b>, <b>Monica O'Mealia</b>, <b>Christian Cuesta</b>, and <b>Nathalia Burgos</b> in connection with the scheme, alleging that they deceived investors in helping to raise money for MJ Capital.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rolf Max Hirschmann</b> aka <b>Max Bergmann</b> was sued along with <b>WeedGenics</b>, <b>Integrated National Resources Inc</b>. in connection with an alleged $62 million Ponzi-like scheme that defrauded approximately 350 investors. WeedGenics offered returns from a supposed marijuana investment opportunity but never owned or operated a cultivation facility as represented. WeedGenics executive is <b>Patrick Earl Williams</b>, a rapper known as “<b>BigRigBaby</b>,” who allegedly spent investor funds on his music career.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert J. Jesenik</b>, 63, the former CEO of <b>Aequitas Capital Management</b>, was sentenced to 14 years in prison; <b>Andrew N. MacRitchie</b>, 59, the former executive VP was sentenced to 5 years and 10 months; and <b>Brian K. Rice</b>, 56, an executive VP, was sentenced to 3 years and 1 month in connection with the scheme. The scheme defrauded investors out of $300 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jon Patrick Kubler</b>, <b>Aksarben Evolution, LLC</b>, <b>AV Bhill, LLC</b>, <b>CFH Texas, LLC</b>, <b>Green Saddle, LLC</b>, and <b>Kubler Consulting, LLC</b>, along with relief defendants, <b>Kubler Financial, Inc.</b> and <b>Midwest PEG, LLC</b>, were sued by the SEC in connection with an alleged fraudulent scheme that defrauded at least 56 investors out of approximately $5.6 million. The defendants promised returns from investment opportunities, primarily in commercial real estate, but only a small amount was actually invested.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William Logsdon</b>, 55, of Texas, was sentenced to 9 years in prison for his role in running a Ponzi scheme with his mother-in-law, <b>Jamie Thompson</b>. Thompson had previously pleaded guilty and was sentenced to 5 years in prison. Logsdan is a lacrosse coach and teacher and persuaded members of his community and family to invest in royalty interests for oil, gas and mineral projects in Texas and New Mexico. The scheme was run through <b>National Royalty Group</b>, or <b>NRG</b>. More than 20 victims were defrauded out of more than $2.1 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Muhammad Murtuza Kazmi</b>, <b>MyForex Funds</b>, and <b>Traders Global Group Inc</b>. were sued by the CFTC. The firm claimed to be a retail foreign exchange and commodities trading firm and it took in around $300 million from investors around the world. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mirror Trading International</b> was ordered to pay $1.7 billion in restitution in connection with the fraudulent scheme run through the company and by its CEO, <b>Cornelius Steynberg</b>. Almost 30,000 bitcoins were collected from over 23,000 investors in a supposed commodity pool. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew M. Motil</b>, 43, host of “<b>The Cash Flow King</b>” podcast, was charged by the SEC on allegations that he was running an $11 million Ponzi scheme that defrauded more than 50 people. Motil promised returns from promissory notes that he represented were backed by first mortgages on homes in Ohio. Motil told investors he would renovate, sell, refinance, or rent the properties to generate returns. He allegedly sold the same property to many investors and, in one instance, sold notes to 20 different investors and raised $1.3 million for a property he bought for $47,000.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marco Ruiz Ochoa</b>, 35, pleaded guilty to charges in connection with the cryptocurrency IcomTech Ponzi scheme. Ochoa was the CEO of the scheme that promised daily returns from a purported cryptocurrency mining and trading business. <b>Carmona Juan Arellano</b>, <b>Moses Valdez</b>, and <b>David Brend</b> were also charged in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pablo Renato Rodriguez</b>, 40, was sentenced to 12 years in prison in connection with the <b>AirBit Club</b> which he co-founded with <b>Gutemberg Dos Santos</b>, 48. Santos and other co-defendants, <b>Soctt Hughes</b>, 47, <b>Celilia Millan</b>, 41, and <b>Karina Chairez</b>, 47, have pleaded guilty. The scheme defrauded investors out of about $100 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Armando Gutierrez Rosas</b> and <b>Aras Investment Business Group S.A.P.I de C.V.</b> were charged by the SEC in Texas with fraudulently raising at least $15 million from more than 450 investors. <b>Efren Quiroz</b>, <b>Luis Quiroz</b>, <b>Maria Tolentino</b>, and <b>Diayanira Rendon</b> were also charged for their roles in the alleged fraud. Aras is a Mexico-based company, and the scheme targeted members of the Mexican American community. The scheme promised returns as high as 10% from investments in U.S. real estate and mining operations in Mexico. The funds were not used for investment purposes, and Gutierrez instead used funds for personal expenses including a $2.5 million mansion in Texas.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michelle Silverstein</b> aka <b>Michelle Silverstein Bisnoff</b> and her company <b>Esos Rings, Inc</b>., were charged by the SEC in connection with an alleged Ponzi-like scheme. They raised $1.95 million from investors for investments in a company that allegedly manufactured and sold wearable rings which functioned as debit cards. They claimed that they owned patents for the smart rings and that Apple was supposedly in the process of buying their company. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Walker Sumchai</b>, 61, of California, was charged by the SEC in connection an alleged scheme that raised over $13 million from more than 1,000 investors in the Tongan American community. Investors were sold shares in “<b>Tongi Tupe</b>” which Sumchai represented used a secret algorithm to generate guaranteed high returns. Sumchai promised at least a $146,000 return in 16 weeks on a $3,000 investment. The SEC alleged that in reality Tongi Tupe did not generate any returns but that Sumchai was operating a Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The estate of <b>Stephen Romney Swensen</b>, <b>Crew Capital Group LLC</b>, <b>Wendy Swensen</b>, <b>Swensen Capital LLC</b> and <b>Wingman LLC</b> settled claims with the SEC relating to an alleged Ponzi scheme run by the deceased Swensen. The SEC had alleged that Swensen ran the scheme from 2011 through his death in 2022 and that he defrauded more than 50 people out of at least $29.3 million. The scheme solicited funds into Crew Capital, which was supposedly a fund that invested in bank loans and options on the S&P 500 index with guaranteed minimum returns of 5% to 10% annually. Two other defendants in the action, <b>Saria C. Rodriguez</b> and <b>WS Family IP LLC</b>, have not settled. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Evan Daniel Tromp</b>, 37, was charged in connection with his operations of various company as an alleged Ponzi scheme. The scheme was run through <b>Quanta Capital B.V.</b>, <b>Operational and Financial Advisory, LLC</b>, and <b>Quanta Nominee, LLC</b>. Investors were promised high returns from investments in cryptocurrency mining and trading with virtually no risk. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert Wisnicki</b>, 44, of New York pleaded guilty to charges in connection with his operation of an $18.8 million Ponzi scheme in which investors invested in real estate through his law firms, <b>Wisnicki & Associates</b> and <b>Wisnicki Neuhauser LLP</b>. Wisnicki used funds from his firm’s IOLA accounts for noninvestors to cover losses for other clients who had invested in the recommended real estate investments. Wisnicki also took part in an auto insurance fraudulent scheme by laundering proceeds of the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Greg Martel</b> was ordered into a personal bankruptcy in connection with proceedings relating to an estimated $226 million run through his company, <b>Shop Your Own Mortgage</b> aka <b>My Mortgage Auction Corp</b>. The scheme involved supposed short term bridge loans to real estate developers, and nearly 1,200 investors were promised returns as high at 100% per year. Martel’s whereabouts remain unknown. Martel was also found guilty of civil contempt in connection with the matter.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Curtis Gordon Quigley</b>, 56, and <b>Kathleen Treadgold</b>, 56, were charged in connection with an alleged Ponzi scheme that took $7.8 million from investors. The scheme was run through <b>Group Venture Inc.</b> and ran from 2008 to 2020, and investors were given promissory notes that guaranteed a return on their investment. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kenneth Campell</b> was banned from running a business for 14 years following an investigation into his scheme run through <b>HGEC Capital Ltd</b>. The losses to investors were £2.8 million. Investors were told that they were investing in an oil and gas venture in Texas.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are on the lookout for 3 Chinese nationals known as <b>Liu Huan</b>, <b>Wenhui Zheng</b>, and <b>Xu Xiaohu</b>. They are associates of <b>Guanhau Wang</b>, 40, the master mind of the scheme run through 14 companies engaged in cyber-financial frauds. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Dharmendra Sandu</b> was arrested in connection with the <b>Pearls Agrotech Corporation Ltd</b>. Ponzi scheme. <b>Hirdaypal Singh Dhillon</b>, <b>Sandeep Singh Mahal</b>, and Sandhu were all removed as directors as they had allegedly submitted forced documents.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Agri Gold</b> promoters <b>AV Rama Rao</b>, <b>Seshanaryana Rao</b>, and <b>Hemasundara Varaprasad</b> were charged in connection with the scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The assets of <b>Ashesh Mehta</b> and his spouse were frozen in connection with an alleged Ponzi scheme run through <b>Bliss Consultants</b>, led by <b>Krishna Hegde</b>. The scheme defrauded over 4,000 investors and promised investors 2.5% profits per month. Mehta and his wife have gone into hiding.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Prabhat Ranjan Biswal</b> and his wife <b>Laxmi Bilasini Biswal</b> were charged in connection with the <b>Seashore Group</b> Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities issued a warning about <b>Sprhy Gold Investment</b>/<b>Sprhy Cash Paluwagan</b> stating that it has the characteristics of a Ponzi scheme. Sprhy Gold allegedly solicits investments at a minimum of P5,000 up to P500,000, which is supposed to earn 15% up to 30% after 30 days. </span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-6038408297317220662023-08-31T19:14:00.000-07:002023-08-31T19:14:09.310-07:00 August 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for August 2023. At least 9 new Ponzi schemes came to light this month. Ten years of prison sentences were imposed on Ponzi schemers. The average age of the fraudsters was about 50 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher Anderson</b>, 47, of New Jersey, and <b>Richard Curry</b>, 36, of Pennsylvania, pleaded guilty to charges relating to the alleged $35 million Ponzi scheme masterminded by <b>Eliyahu “Eli” Weinstein</b> aka <b>Mike Konig</b>. Others charged in connection with the scheme are <b>Aryeh “Ari” Bromberg</b>, 49, and <b>Joel Wittels</b>, 57, <b>Shlomo Erez</b>, 55, a citizen of Israel, and <b>Alaa Hattab</b>, 34, of Canada. Anderson and Curry owned <b>Tryon Management Group LLC</b>. The scheme defrauded at least 150 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Denny Bhakta</b>, of California, faced new charges in connection with a $4 million PPP loan, while earlier charges in connection with a $15 million Ponzi scheme remain pending. The SEC charged Bhakta in 2021 for an alleged scheme run through <b>Fusion Hotel Management</b> and <b>Fusion Hospitality Corporation</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wynn A.D. Charlebois</b>, 53, of North Carolina, pleaded guilty to charges that he ran a Ponzi scheme that defrauded investors out of more than $5.3 million. Charlebois ran the scheme from 2015 through October 2022 and defrauded at least 39 investors. He promised that their investments were risk free and that he had stock options that investors could purchase.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William V. Conn Jr</b>., a Georgia CPA, was charged by the SEC in connection a Ponzi scheme run through <b>Horizon Private Equity, III LLC</b>. The scheme raised $100 million from about 400 investors, most of whom were elderly. <b>John Woods</b> was the mastermind of the scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Johanna Michely Garcia</b>, 40, of Florida, was charged in connection with an alleged Ponzi scheme run through <b>MJ Capital Funding LLC</b>. MJ Capital offered merchant cash advances and brought in $190,700,000 and promised investors about 10% of the money they raised. <b>Pavel Ramon Ruiz Hernandez</b> was charged in 2022 and pleaded guilty in April this year. Garcia had been dubbed Florida’s Mother Theresa for helping companies get short-term financing. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Erik J. Hass</b>, 53, of Oregon, was sentenced to 2½ years in prison and ordered to pay $1.75 million in restitution in connection with a Ponzi scheme that he ran through <b>Simply Grains Inc</b>. Hass claimed that the company supported Christian ministries and organizations while offering returns for investors. He offered compounded annual returns of up to 30%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Peter P.D. Leach</b>, of Rhode Island, pleaded guilty to charges related to a Ponzi scheme that misappropriated $500,000 and caused losses of more than $250,000. Leach is a personal injury lawyer who misappropriated more than $500,000 in client settlement funds.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Douglas Lien</b>, 82, of New Mexico, pleaded guilty to charges that he ran a 20-year Ponzi scheme that resulted in losses of about $5 million for 27 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Allen Todd May</b> aka <b>Jacob Turner</b>, 58, was caught five years after he escaped prison in connection with a $7 million Ponzi scheme. May was sentenced to 20 years in prison in 2012 and escaped in 2018 by stealing a prison van. May was caught living a lavish lifestyle in Florida under a false name. While in prison, it is believed that he stole more than $700,000 by impersonating companies owed oil and gas royalties. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Volodimyr Pigida</b>, 48, failed to show up to his sentencing hearing. He was convicted last year on charges that he was running a Ponzi scheme with his wife, <b>Marina Bondarenko</b> that defrauded victims out of over $11 million. The scheme involved “<b>Trend Sound Promoter</b>” that convinced people to buy packages related to email marketing.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Craig Sherman</b>, 80, of Florida, pleaded guilty to charges that he defrauded clients in a Ponzi scheme. Sherman is a retired lawyer who promised investors 6% to 8% returns from real estate projects where he would loan money for construction projects. The total losses were approximately $7 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Chad Stickforth</b> and his company, <b>RSF Capital LP</b>, were charged by the SEC in connection with an alleged $5 million Ponzi scheme. Stickforth raised money from approximately 20 investors, promising returns from futures contracts, commodity interests and options.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Roman Storm</b>, of Washington, and <b>Roman Semenov</b>, of Russia, were charged in connection with a cryptocurrency scheme called <b>Tornado Cash</b> that allegedly made more than $1 billion in money laundering transactions. They are believed to have laundered hundreds of millions of dollars for the <b>Lazarus Group</b>, a North Korean cybercrime organization. Tornado Cash claimed it was untraceable and allowed for anonymous financial transactions.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Steven Keith Woodard Sr</b>., of Hawaii, consented to a ban from the securities industry in connection with charges that he ran a $6 million Ponzi scheme. Woodard did not admit or deny the allegations that he defrauded about 30 investors in a supposed risk-free trading scheme. Woodard sold clients of his advisory firm, <b>Morganwood</b>, promissory notes that offered annual returns of 15% to 30%. He used fund names such as <b>Tangible Economy Fund</b> and <b>Hi-Income Fund</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeven “J” Wright</b>, 40, was arrested in connection with alleged Ponzi scheme involving the buying and reselling of cars. Wright was supposedly involved in the import and export of cars but needed financing to purchase cars. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Bangladesh</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Metaverse Foreign Exchange Group</b> (MTFE) collapsed and is alleged to have been running a Ponzi scheme. <b>Masud Al Islam</b> is believed to be the mastermind of the scheme that was a trading service provider for online investment in foreign exchange, commodities, stocks and other products. Over $1 billion may have been lost in the scheme. The scheme is being investigated in Sri Lanka.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Brazil</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Johann Steynberg</b> was found guilty in connection with the South African crypto trading scheme run through <b>Mirror Trading International</b>. He was sentenced to 3 years and 6 months in prison, but the court commuted his sentence to a fine of just over $31,000.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Curtis Gordon Quigley</b>, 56, and <b>Kathleen Treadgold</b>, 56, were charged in connection with an alleged $7.8 million scheme. The scheme was run through <b>Group Venture Inc</b>. and promised returns from the flipping of real estate. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">A judgment was entered against <b>Robin Forster</b>, the director of <b>Qualia Care Properties Ltd</b>. and <b>Qualia Care Developments Ltd</b>. The Qualia Care entities offered investments in care homes run by <b>Qualia Care Limited</b> where investors purchased a long-term lease in a care home and then sublet the room back to Qualia. Investors were promised returns of 10% of the purchase price. The scheme took in £57 million from 380 investors. The action is also against the sales agent for the scheme, <b>Fortem Global Limited</b>, which was owned by Forster and <b>Richard Tasker</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities arrested <b>Darshan Paranjape</b>, 40, in connection with an alleged Ponzi scheme that defrauded 33 investors out of Rs 9 crore.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nirod Das</b>, one of the heads of <b>Solar Techno Alliance</b>, was arrested on allegations that he was running a crypto-currency Ponzi scheme. Solar Techno supposedly offered a service that enabled users to order anything they want from the nearest farmers in the shortest amount of time using block chain technology. The scheme involved the STA token. <b>Gurtej Singh Sidhu</b> and <b>Ratnakar Palai</b> were also arrested in connection the crypto-currency scheme that defrauded more than 10,000 victims. The scheme is believed to involve more than $120 million. <b>David Gez</b>, a Hungarian national, is believed to be the head of the scheme and a Look Out notice has been issued again him. A Look Out notice was also issued against <b>Krishna Kumar</b>, <b>Anil Kumar</b>, and <b>Bhoora Ram</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>S Chitravel</b>, 31, was arrested in connection with an alleged Ponzi scheme run through <b>Bettec Technologies Private Limited</b>, run by <b>Guanhua Wang</b>. Wang also runs <b>Gamecamp Technologies Private Limited</b> and <b>Byrontec Solutions Private Limited</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Prabir Kumar Chanda</b> and <b>Pranab Kumar Das</b>, directors of <b>MPS Greenery Developers Limited</b>, were arrested in connection with a scheme that they ran through the company. MPS was also controlled by <b>Pramatha Nath Manner</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities shut down <b>Stockmatch Investments Limited</b> for engaging in illegal investment activities. Neither the entity nor the investments are registered.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Africa</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Neo Patrick Makhokolo</b>, 29, the co-founder of <b>Black Child Billionaire</b>, was found guilty and sentenced to four years on various counts. Co-founder <b>Lebohang Ernest Maboeba</b>, 27, is on the run. The scheme promised returns of between 25% and 100% per month.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-68162090841828086082023-07-31T19:17:00.000-07:002023-07-31T19:17:22.397-07:00July 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for July 2023. At least 7 new Ponzi schemes came to light this month. Over 24 years of prison sentences were imposed on Ponzi schemers. The average age of the fraudsters was about 50 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eddy Alexandre</b>, 51, the CEO of <b>EminiFX</b> was sentenced to 9 years in prison and ordered to pay nearly $214 million in restitution in connection with a cryptocurrency trading scheme. Criminal authorities referred to the operations as a “massive Ponzi scheme.” An estimated 25,000 investors deposited nearly $250 million into the scheme, which targeted the Haitian community and fellow church members. Alexandre represented that investors could receive weekly returns of 5% to 9.99%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert D. Christensen</b> and <b>Anthony M. Matic</b> of Oregon were charged by the SEC with running a Ponzi-like scheme through <b>Forsee Inc</b>., <b>The Commission PDX, LLC</b>, <b>The Policy PDX, LLC</b>, and <b>Innings 150, LLC</b>. Investors purchased more than $10 million in promissory notes that promised interest rates between 9% and 15%. The scheme was involved in the purported investment in real estate.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nayeem Choudry</b>, 27, and his hedge fund, <b>Dream Venture Capital Group LLC</b>, of North Carolina, were sued by the SEC seeking to stop an alleged Ponzi scheme that raised at least $9.3 million from about 80 investors. Choudry promised risk-free investments in his hedge fund but in reality he lost over $4.8 million in options trading. He misused some funds and made payments to other investors of $3.5 million. A permanent injunction was entered against Choudry, prohibiting him from offering any investments in Dream Ventures.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ryan Morgan Evans</b> had a judgment entered against him by the SEC which resolved claims arising from the fraudulent scheme known as Saivian. Judgments had previously been entered against <b>Eric J. “EJ” Dalius</b> and <b>Saivian LLC</b>. The scheme involved the sale of “Cashback Membership” securities that entitled holders to receive 20% cash back on retail shopping purchases in exchange for paying a fee of $125 every 28 days. Evans agreed to pay $338,743 in disgorgement, interest, and penalties.</span></p><p style="text-align: justify;"><b style="font-family: verdana;">Dwight A. Foster</b><span style="font-family: verdana;"> and </span><b style="font-family: verdana;">KEL Enterprises</b><span style="font-family: verdana;"> reached an agreement with the CFTC for permanent registration and trading bans. Foster used KEL Enterprises to solicit funds from at least 45 investors to invest in the commodities and foreign exchange market called </span><b style="font-family: verdana;">QYU Holdings Corp</b><span style="font-family: verdana;">.</span></p><p style="text-align: justify;"><b style="font-family: verdana;">Shawn Edward Good</b><span style="font-family: verdana;">, 56, of North Carolina, was sentenced to 7 years and 2 months in prison and ordered to pay more than $3.6 million in restitution following his admitting to running a $7 million Ponzi scheme. Good is a former Morgan Stanley advisor who convinced his clients to borrow against their portfolios and give the money to him to invest. He instead spent the money on himself.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Richard Heart</b> aka <b>Richard Schueler</b>, 43, along with his <b>Hex</b> token, <b>PulseX</b> asset trading platform, and <b>PulseChain</b> were charged by the SEC in an alleged Ponzi scheme that brought in $1 billion. Heart represented that investors could make 38% annual returns on Hex and that Hex was “built to be the highest appreciating asset that has ever existed in the history of man.” Heart is believed to have spent investor funds on McLaren and Ferrari sports cars, four Rolex watches costing $3.02 million, and "The Enigma," a 555-carat black diamond costing 3.16 million British pounds (then $4.28 million) at a Sotheby's auction in February 2022.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Anthony B. Liddle</b>, 41, of Wisconsin, was sentenced to 8 years in prison in connection with a scheme run through his financial advisory firm, <b>Prosper Wealth Management</b>. Liddle stole more than $1.9 million from his clients by promising them returns on supposed low-risk investments. Liddle had pleaded guilty in February 2023.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sousa Pires</b> and <b>Flavio Mendes Gonclaves</b> had final judgments entered against them in connection with the cryptocurrency scheme run through <b>EmpiresX</b>. The judgments were entered by default and they were also ordered to pay disgorgement of over $32 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carl Ruderman</b>, 81, was indicted on charges that he defrauded investors in the <b>1 Global Capital</b> Ponzi scheme. Ruderman ran up $50 million in debt before filing for bankruptcy. 1 Global Capital failed to loan out millions of dollars that the company had raised from investors after representing that funds would be deployed to small and medium-sized businesses. The scheme promised investors returns from business loans known as merchant cash advances and defrauded 3,600 investors in 42 states. Former chief financial officer <b>Alan Heide</b> and attorney <b>Andrew Ledbetter</b> were previously sentenced to 5 years each in connection with the scheme. <b>Jan Douglas Atlas</b> was also previously sentenced.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brent Adam Seaman</b>, 49, of Florida, was charged by the SEC with running an alleged Ponzi scheme that raised about $35 million from at least 60 investors. Seaman represented that he was a venture capitalist who would place investor funds with start-up technology and software companies and use the funds to trade currencies and commodities. He promised returns between 18% and 48% and that the investments were safe and guaranteed. Seaman ran the scheme through <b>Accanito Capital Group</b> and <b>Surge LLC</b>. Seaman’s wife, <b>Jana Seaman</b>, was also named in the complaint along with her affiliated entities, <b>Valo Holdings Group, LLC</b> and <b>Surge Capital Ventures, LLC</b>. She has agreed to pay back more than $757,000. The SEC also accused the following entities of securities violations: <b>Accanito Holdings, LLC</b>, <b>Accanito Equity, LLC</b>, <b>Accanito Equity II, LLC</b>, <b>Accanito Equity III, LLC</b>, and <b>Accanito Equity IV, LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Avinach Singh</b> and his company, <b>Highrise Advantage LLC</b>, declined to settle with the CFTC along with other co-conspirators who resolved claims relating to a foreign exchange commodity pool. The scheme allegedly run by Singh brought in more than $57 million from more than 1,300 pool participants.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Reva Joyce Stachniw</b>, 71, was sentenced to 7 years in prison in connection with a Ponzi scheme run with <b>Ron Throgmartin</b> through <b>Universal Herbs LLC</b>. The scheme ran from 2017 to 2019 and promised returns or 10% to 20% from short-term investments in cattle and marijuana. A third conspirator <b>Mark David Ray</b> previously pleaded guilty but has not yet been sentenced. The co-conspirators directed new investors to make payments directly to individuals who the investors were falsely led to believe were business associates. Stachniw assisted investors to make the payments through her companies, <b>RM Farm & Livestock LLC</b> and <b>Sunshine Enterprises LLC</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joseph Michael “Mike” Todd</b>, of Florida partially settled charges brought by the SEC for defrauding at least 20 brokerage customers out of at least $3 million. The scheme was run through <b>Todd Financial Services LLC</b> and <b>TFS Insurance Services LLC</b>. Todd represented that he would invest customers’ funds in various securities but instead misappropriated the funds for her personal use and made Ponzi-like payments to conceal the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eliyahu Weinstein</b> aka <b>Mike Konig</b>, 48, of New Jersey, was arrested on allegations that he and 4 others defrauded 150 investors out of more than $35 million. Former president Trump had previously granted Weinstein clemency after Weinstein had served less than 8 years of a 24-year sentence he had received for running two other investment fraud schemes totaling more than $200 million. The others charged in connection with the scheme are <b>Aryeh "Ari" Bromberg</b>, 49, <b>Joel Wittels</b>, 57, <b>Shlomo Erez</b>, 55, and <b>Alaa Hattab</b>, 34. They solicited funds through <b>Optimus Investments Inc</b>. and <b>Tyron Management Group LLC</b> and promised returns from supposed investments in COVID-19 masks, scarce baby formula, and first-aid kits for Ukraine.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><u><b>Canada</b></u></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Frederick Johnathon Nielsen</b> fka <b>Fred Gilliland</b> was charged in connection with conduct occurring in 2018 and 2019. Nielsen has previously pleaded guilty for breaching a settlement that had banned him from the financial markets for 25 years. Nielsen had previously traded securities without being registered and had solicited more than $20 million from over 200 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>China</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Guanhua Wang</b>, 40, was accused of running a Ponzi scheme through <b>Bettec Technologies Private Limited</b> and <b>Gamecamp Solutions Private Limited</b> and <b>Byrontec Technologies Private Limited</b>. Authorities in India issued a Look Out Circular for Wang who stole money out of India through shell companies and crypto-traders.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities searched 5 locations belonging to <b>Hindustan Infracon India Limited</b> in connection with a Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kaustuv Ray</b> was arrested in connection with his links to an alleged Ponzi scheme run through <b>Pincon Group</b>. Ray asserts that he was arrested wrongfully.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>V Covindasamy</b>, 66, and his wife <b>C Lakshmi</b>, 56, and <b>A Justin Prabhakar</b>, 43, were arrested in connection with the <b>Universal Trading Solutions</b> alleged Ponzi scheme. Covindasamy and Lakshmi are the parents of <b>C Gowtham Ramesh</b>, 33, who is the managing director of Universal Trading. Authorities alleged that as many as 76,000 investors were invested in the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Dinesh Kumar Singh</b> aka <b>Dinesh Singh Gujjar</b> was arrested in connection with the Bike Bot alleged Ponzi scheme. The scheme was allegedly run by <b>Sanjay Bhati</b>, the promoter of <b>Garvit Innovative Promoters Ltd</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Ireland</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nicholas Wickham</b> was disqualified for 7 years from holding a directorship following a finding that he was running a Ponzi scheme through his company, <b>Irish Gold and Silver Bullion Limited</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bamishe Ajetunmobi</b> was arrested and kept in custody in connection with N7.5 billion fraudulent scheme. Ajetunmobi ran the scheme with his wife, <b>Elizabeth Ajetunmobi</b>, who is still at large, through their firm, <b>Imagine Global Solutions Limited</b>. They offered 10% returns on investments.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Zimbabwe</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Zhao Jiaotong</b>, 39, the founder of <b>E-Creator Electronic Commence Private Limited</b>, and <b>Trymore Tapfumaneyi</b>, 32, were arrested in connection with an alleged Ponzi scheme run through E-Creator. He had fled the country with investors’ funds of about $1 million. Investors could deposit $15, $100 or $500 to receive dividends from $50 to $2,000. Others involved with E-Creator who are still at large are <b>Justin Kuchekenya</b>, <b>Billy Thomas Syedou</b>, and <b>Abraham Mutambu</b>. After complaints that investors could not access their funds, E-Creator posted a message on its website that it was no longer operating.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Emmanuel Chikweza</b> was arrested in connection with an alleged Ponzi scheme he ran through <b>Homelife Furniture and Electrical Appliance Company</b>.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-58575917686369781192023-06-30T20:40:00.001-07:002023-06-30T20:40:43.684-07:00June 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for June 2023. Seventeen new Ponzi schemes came to light this month, involving over $1 billion of investor dollars. Over 62 years of prison sentences were imposed on Ponzi schemers, and there were at least 4 guilty pleas and one criminal conviction. 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. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wilson Baston</b> aka <b>William Baston</b> aka <b>Chanon Gordon</b> aka <b>Jackie Wilson</b>, 62, of New York was sued by the SEC in connection with an alleged real estate Ponzi scheme. Baston had previously pleaded guilty in 2008 to defrauding hundreds of investors in a Ponzi scheme and was released from prison in 2017. Shortly after his release, he began using aliases, including Chanon Gordon to run a new Ponzi scheme in the real estate industry run through <b>Gordon Management Group LLC</b>. He promised returns within days or weeks along with a fee that could equal as much as 25% of the investment. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wendy Beard</b>, 58, of Michigan, was accused of running an alleged Ponzi scheme that defrauded art collectors out of $1.6 million worth of artwork. Beard ran <b>Wendy Halsted Gallery</b> and accepted payments for artworks that were never delivered.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ray Holcomb Brewer</b>, 66, of California, was sentenced to 6 years and 9 months in prison for his role in operating an $8.75 million Ponzi scheme in which he claimed he could turn cow manure into green energy. He claimed his business, <b>CH4 Power</b>, built anaerobic digesters on dairy farms that would turn biodegradable material into methane. Brewer promised returns of 66% and tax incentives. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tyler Campbell</b>, <b>INR Consulting LLC</b>, <b>Hidden Springs Holdings Group LLC</b>, <b>Michael Delgado</b>, <b>Total Solution Construction LLC</b>, <b>Bagpipe Holdings LLC</b>, and <b>Bagpipe Multimedia LLC</b> were all subject to an asset freeze and injunction. The SEC named the parties as relief defendants as they allegedly received funds for primary defendants Integrated <b>National Resources Inc</b>. dba <b>WeedGenics</b>, <b>Patrick Earl Williams</b>, and <b>Rolf Max Hirschmann</b>. The SEC has alleged that they were running a $60 million Ponzi scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Yossi Engel</b> was ordered to disgorge ill-gotten gains from a $47 million Ponzi scheme he ran that targeted the Orthodox Jewish community. The scheme was run through <b>iWitness Tech LLC</b>. Investors were promised returns from the purchase and installation of security cameras by Engel on behalf of his clients. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bruce Ford</b>, 50, of Indiana, was sentenced to 4 years and 3 months in prison in connection with a Ponzi scheme involving $1.2 million. Ford was a licensed insurance broker who encouraged his clients to cash out their retirement accounts and invest in real estate and business ventures. He used the money for his personal expenses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Cedric Dewayne Griffin</b> was charged by the SEC in connection with an alleged Ponzi scheme that targeted members of the African-American community in Florida. The scheme raised $5.9 million from at least 103 investors through a fraudulent securities offering in which he offered promissory notes issues by his companies <b>G8 Equity LLC</b> and <b>G8 RE Capital LLC</b>. Griffin offered monthly returns ranging from 10% to 33%. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marlin Hershey</b>, 53, and <b>Dana Bradley</b>, 53, of North Carolina, pleaded guilty to charges relating to a Ponzi scheme run through <b>Performance Retire on Rentals</b> and <b>Distressed Lending Fund</b>. The scheme ran for 12 years.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William Koo Ichioka</b>, 30, was charged by the CFTC, the SEC, and the US Attorneys Office in connection with an alleged $21 million cryptocurrency Ponzi scheme run through <b>Ichioka Ventures LLC</b>. He promised 10% returns every 30 business days and guaranteed investors’ principal. Approximately 75 investors were defrauded in California and Oregon.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kevin Kang</b>, of Florida, and <b>BKCoin Management LLC</b> were sued by the SEC in connection with an alleged crypto asset fraud scheme. BKCoin had raised around $100 million from 55 investors between 2018 and 2022 to supposedly invest in crypto assets. The complaint also names <b>Bison Digital LLC</b> as a relief defendant.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brian Lee Kissinger</b>, 53, and <b>Kenny Rojas</b>, 45, of California, pleaded guilty to charges relating to a scheme run through <b>Aria Management Group</b>. They recruited victims to invest in buying liens on distressed properties. The scheme involved losses of over $1.4 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jason Kurland</b>, 49, was sentenced to 13 years in prison in connection with a $100 million Ponzi scheme. Kurland was a lottery lawyer who steered his clients who had won large jackpots into investment schemes run by co-conspirators and into his own companies. The other defendants are <b>Christopher Chierchio</b>, 52, <b>Frangesco “Frankie” Russo</b>, 38, and <b>Francis “Frank” Smookler</b>, 45.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeffrey Lash</b>, 54, pleaded guilty to charges relating to the Ponzi scheme run through <b>GPB Capital Holdings</b>. The scheme, run by GPB founder <b>David Gentile</b>, defrauded 17,000 investors out of $1.8 billion.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William Logsdon</b>, 54, was convicted on charges relation to a Ponzi scheme run with his mother-in-law, <b>Jamie Thompson</b>, through <b>National Royalty Group</b>. They promised returns from investments in the purchase of royalty interests in various oil, gas and mineral projects in Texas and New Mexico. Victims were defrauded out of more than $1,500,000.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Billy Marcum Jr</b>. was sentenced to nearly 17½ years in prison and ordered to pay more than $16.6 million in restitution for his role in a $25 million Ponzi scheme that caused losses of more than $13 million. The oil and gas leasing scheme defrauded more than 120 investors. Marcum owned several companies, including <b>Viejo Services</b>, <b>Navarro Minerals</b>, and the <b>Caslin Group</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Miles Burton Marshall</b> was accused of running a Ponzi scheme that brought in about $90 million from hundreds of investors. Marshall promised returns of 8% and represented that he was making profits from real estate investments. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>McClain Farms</b>, <b>7M Cattle Feeders Inc</b>., <b>McClain Feed Yard Inc</b>., and the estate of <b>Brian McClain</b>, the farm's owner who passed away in April 2023, were accused of running a Ponzi scheme involving more than $122 million in cattle operations. Some investors were guaranteed returns of 30%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Surage Kamal Roshan Perera</b> and his firm, <b>Janues Capital Incorporated</b>, were charged by the SEC in connection with an alleged Ponzi scheme. Perera represented that he had access to restricted securities at a discounted price through connections with institutional investors. He guaranteed returns of up to 9% and said he used a trading strategy called <b>Options Straddles</b>. Perera misappropriated at least $3.3 million of out the $4.3 million he raised. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Emerson Pires</b> and <b>Flavio Goncalves</b> were ordered to disgorge about $32.2 million and to pay penalties and interest totaling another $13.7 million in connection with the crypto hedge fund <b>EmpiresX</b>. The two had fled the country and did not respond to the SEC’s complaint that had also named the head trader, <b>Joshua David Nichols</b>. The cryptocurrency scheme raised funds totaling about $40 million based on falsified claims about a proprietary trading bot that would generate returns. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darren Anthony Robinson</b>, 53, was charged in connection with an alleged Ponzi scheme that defrauded investors out of $100 million. The scheme was run through <b>QYU Holdings</b>, a foreign exchange trading firm, which was located in Panama and Cayman Islands. Investors were guaranteed returns of 3% per month and that the firm only paid on trading profits. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sanjay Singh</b>, 43, of Florida, was charged in connection with an alleged $112 million Ponzi scheme run through <b>Royal Bengal Logistics, Inc</b>. Royal Bengal was represented to be a successful trucking business while the company was actually losing money. Singh and his co-conspirators raised funds from investors and promised guaranteed returns from 12.5% to 325% from high-yield investment programs. Investors were told that their funds would be used for business expansion and enhancing their fleet of trucks and trailers. The scheme targeted the Haitian-American community and defrauded as many as 1,500 investors out of about $70 million. Singh allegedly misappropriated millions of dollars to renovate his home, make mortgage payments, and pay other personal expenses.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Josh S. Verne</b> was charged by the SEC in connection with an alleged $30 million Ponzi scheme. The scheme defrauded more than 100 investors through his online rent-to-own business <b>Ownable, LLC</b>, <b>Ownable Capital Partners I, LLC</b>, and three limited liability companies. Verne allegedly used at least $9.3 million of investor funds for his own benefit.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen Keith Woodard Sr</b>. was charged by the SEC in connection with an alleged Ponzi scheme that raised approximately $6 million from more than two dozen victims. Woodard ran the scheme from 2016 to mid-2021 by offering promissory notes issues by <b>Morganwood Ltd</b>. He claimed he had a risk-free trading strategy that preserved capital but instead had mounting trading losses.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS </b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Dunjey</b> and his company <b>Ascent Investment and Coaching</b> were accused of running a Ponzi scheme that involved $150 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Greg Martel</b> was suspended by authorities in connection with a $226 million Ponzi scheme that he ran through <b>Shop Your Own Mortgage</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Anthony Constantinou</b> aka <b>Antonis Hadjicostis</b> and <b>Georgios Arnaoutakis</b>, 41, was sentenced to 14 years in prison in his absence in connection with a £70 million Ponzi scheme run through <b>Capital World Markets</b>. He promised returns of 60% per year on risk-free foreign exchange markets. A total of 312 investors were defrauded.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Liam Francis Wainwright</b>, 62, was found guilty and sentenced to 7 years in prison in connection with a £20 million Ponzi scheme run through <b>Rawdon Asset Finance Ltd</b>. Wainwright represented that he was using investor funds to lend to businesses with security on property, land or plant and equipment, but was actually using the money on ventures including a racehorse syndicate and failed private businesses.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Guyana</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Phylicia Jailim</b> was accused of operating a Ponzi scheme involving more than $228 million. She defrauded investors by representing that she was the Chief Executive Officer of <b>Dream Chasers</b>, which borrows money from investors and lends the money to government contractors and farmers who are having financial problems. She promised returns of 5% to 20% per week. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities ordered <b>Casa Infini Builders and Realty Co Ltd</b>., <b>Ray Education Directions Consultancy Services</b>, <b>Casa Infini Realty Management Co Ltd</b> and <b>Ray International Philippines Corp</b>. to cease operations. The alleged fraudulent scheme promised returns from real estate projects and guaranteed income. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>PetroMobil Corporation</b> was charged in connection with an alleged scheme in which investors were promised high returns from investments in gas stations and unregistered securities.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Africa</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Khongetela Raymond Mabasa</b>, 48, and <b>Ivan Mogane</b>, 42, were arrested in connection with an alleged Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Willem Theron</b> aka <b>Ariel aka Adrian</b> is wanted in connection with an alleged Ponzi scheme known as <b>Love and Lets Live</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Korea</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities detained two individuals in connection with an alleged $350 million cryptocurrency scam that defrauded 435 users. The scheme promised returns of 3% to 16% in a matter of weeks. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">A nun known as “<b>Pattana</b>”, 62, was arrested in connection with her involvement in an alleged Ponzi scheme. The scheme solicited investment in a cloud storage company and promised high returns. Over 1.3 billion baht were invested in the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Uganda</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Yinghe Chen</b>, a Chinese national, was detained after being on the run since last year. Chen is accused of running a Ponzi scheme through <b>BLQ</b>, a sports betting company in which Ugandans have lost billions of shillings. </span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-59103075013300847202023-05-31T20:25:00.000-07:002023-05-31T20:25:14.714-07:00May 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for May 2023. Ponzi scheme activity levels were higher this month with 16 new Ponzi schemes hitting the news. The new schemes involved over $200,000,000 of investor dollars. Over 33 years of prison sentences were imposed on Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brett M. Bartlett</b> was charged in connection with an alleged scheme run through <b>7M E-Group</b> and <b>Dynasty Toys</b> that involved $20.5 million. Bartlett was also sued along with his father-in-law, <b>Scott Miller</b>, by the SEC in connection with the scheme. Bartlett and Miller sold promissory notes, stocks and fraudulent gold contracts to more than 1,000 investors, many of whom attended a large church in Illinois. They claimed that they needed funds to purchase inventory they were confident they could sell by Christmas, and they offered 8% to 20% returns to investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wynn A.D. Charlebois</b>, 52, faced new charges in connection with an alleged Ponzi scheme that ran from 2015 to 2022. The scheme involved $6.9 million, and at least 39 investors were promised returns from investments through his companies, including <b>WC Private</b>, <b>Wilcox Hybrid</b>, and <b>Damon Investments</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Derek Vincent Chu</b>, 41, of California, was indicted on charges relating to an alleged $39 million Ponzi scheme. The scheme involved over 100 victims who were defrauded in a scheme involving the purchase and resale of professional basketball tickets and luxury suites at arenas for the Lakers, Clippers, and Warriors. The scheme ran from 2013 to 2020. Chu diverted more than $7.3 million for his own benefit to pay for travel, a luxury car, and jewelry.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Phillip Galles</b>, 57, of Chicago, was arrested on charges that he ran a scheme that took in more than $6 million from more than 50 investors with promises of returns that exceeded 200%. The CFTC also filed charges relating to Galles’ investment program run through <b>Tyche Asset Management</b>. Galles misrepresented to investors that he had about $2 billion under management and that a Kuwaiti sovereign-wealth fund was interested in investing in the hedge fund.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Shawn Edward Good</b> of Delaware was sentenced to 7 years and 3 months in prison and ordered to pay $3.61 million in restitution in connection with a Ponzi scheme that took in more than $7 million. Good is a former financial advisor who used his role to take advantage of at least 12 clients. He promised returns of between 6% and 10% over three- or six-month terms for investments in purported real estate projects and tax-free municipal bonds.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Cedric Dewayne Griffin</b>, of Florida, defrauded 103 investors out of about $5.9 million in a real estate scheme he ran through his company, <b>Premier Coast Realty</b>. Griffin used some of the money for his own benefit and paid earlier investors purported returns in a Ponzi-like fashion. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Chimene Van Gundy</b>, 46, <b>Outstanding Real Estate Solutions, Inc</b>., and its salespeople, <b>Michael Trofimoff</b>, <b>Santos Kidd</b>, and <b>Maria Tosta</b>, were sued by the SEC on allegations that they were running an investment scheme involving $18.5 million and at least 600 investors. The scheme promised returns from investments in the purchase, refurbish, and resale of mobile homes. Gundy is the self-proclaimed “Queen of Mobile Homes” although she did not actually own the hundreds of mobile homes as represented. Outstanding Real Estate Solutions made Ponzi-like payments to investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rolf Max Hirschman</b> and <b>Patrick Earl Williams</b> aka <b>BigRigBaby</b>, and their company <b>Integrated National Resources, Inc</b>. dba <b>WeedGenics</b>, were shut down by the SEC in what is alleged as a Ponzi-like scheme involving $60 million and about 350 investors. They promised investors guaranteed returns of 36% from the expansion of their cannabis operations and the WeedGenics facilities. In reality, there were no such facilities. Hirschman and Williams instead spent the money on dining, adult entertainment, jewelry, luxury cars, and residential real estate.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Charles Thomas Lawrence Jr</b>., of Connecticut, was sued by the SEC on allegations that he and his associates were running a $5 million Ponzi scheme. Lawrence ran the scheme through a fake Swedish financial services company called <b>Compagnie Trust Privé KB</b>, and he promised investors weekly returns of 25% to 100%. He created a fake web-portal to show investments and returns. Lawrence misappropriated at least $4.8 million from 11 investors and spent the money at Cartier and to charter jets and for international travel.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Quadrino</b> of New York was sentenced to 3 years and 5 months in prison and ordered to pay $3.3 million in restitution in connection with a Ponzi scheme run through <b>Princess Cut Industries, Inc.</b>, <b>Sassy Jewelry Buyers, Inc</b>., and <b>Golden Glitter Trading Inc</b>. Investors were promised returns from the sale of gold, jewelry and diamonds to refineries and jewelers. The scheme ran for five years, brought in $13.1 million, and caused losses of about $3.3 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas D. Renison</b>, 69, of Connecticut, was sentenced to four years in prison, and <b>Timothy J. Allcott</b>, 65, of Massachusetts, was sentenced to 2½ years in prison in connection with a scheme that took in over $6 million from 2015 to 2018. The scheme was run through <b>ARO Equity LLC</b>, and investors were promised returns from investments in three different businesses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Chander Singh</b>, of New Jersey, was sentenced to 8 years in prison after pleading guilty to charges that he ran a Ponzi scheme through his investment firm, <b>SC Capital Investors LLC</b>. The scheme started in at least 2014 and ran for about 5 years, defrauding victims out of about $4.7 million. Co-conspirator <b>Chandrika Basil Singh</b> pleaded guilty and is awaiting sentencing. The criminal case of <b>Shelly Singh-Camargo</b> is still pending. Singh rolled losses from a prior investment firm, <b>FC Investments</b>, which was also a failed distressed property flipping business. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Phillip Roy Wasserman</b>, 66, of Florida, was convicted on charges relating to a Ponzi scheme that defrauded victims out of $6 million through a life insurance start up known as <b>FastLife</b>. Co-defendant Kenneth Rossman pleaded guilty in 2021. The FastLife product was described on Wasserman’s LinkedIn page as a “crazy fast” way for people to purchase life insurance from “highly rated insurance companies.” Investors in the startup were guaranteed an annual return of 10% to 12%. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS </b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Linda Anne Marissen</b> was charged with assisting in the alleged $250 million Ponzi scheme run by <b>Chris Marco</b>. The scheme allegedly defrauded six investors out of about $30 million. Marissen was Marco’s executive assistant.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Botswana</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ecoplexus Investment Group</b>, an online scam, imploded after having spread rapidly through social media. The scheme promised exorbitant returns – as much as 1,544% returns per year – and was based on misrepresentations that victims’ funds would be invested in products of Ecoplexus, a real US company which specializes in the development, design, construction, and financing of renewable energy projects in the US and key international markets.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher Toynton</b>, 73, and <b>Ross Gibson</b>, 27, were sentenced 4½ years and four years five months, respectively, for running a Ponzi scheme though the <b>Lottery Syndicate Club</b>. The scheme was operated between 2017 and 2019 and took in about £4 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Anthony Constantinou</b>, 41, was convicted and found guilty on charges relation to a $62 million Ponzi scheme ran through <b>Capital World Markets</b>. Constantinou had skipped bail, but the trial continued in his absence. Constantinou had offered a 5% monthly return on investments in foreign exchange. Capital World Markets operated from 2014 to 2015, and funds were received from more than 250 investors. Their funds were not, however, actually invested in foreign exchange investments.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>New Zealand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas Alexander Kokouri Tuira</b> aka <b>Alex Tuira</b>, and <b>Aroha Awhinanui Tuiri</b>, were charged in connection with an alleged $4.1 million Ponzi scheme run through <b>Ngākau Aroha Investments Ltd</b> and <b>Power To Me Aotearoa Tapui Ltd</b>. The scheme involved two funds and financial literacy training. More than 60 investors were defrauded.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pattanapon Kunjara Na Ayudhaya</b> (“<b>DJ Man</b>”) and <b>Suteewan Taweesin</b> (“<b>Baitoey</b>”), along with <b>Chatchai Kochatin</b>, <b>Teepatsakorn Kimwangtako</b>, <b>Suranat Narkmusik</b> and <b>Aryuwat Chaimethanarakul</b>, were arrested on charges relating to the <b>Forex-3D</b> Ponzi scheme. The Forex-3D investment scheme was created by a brokerage company, <b>RMS Familia</b>, established in 2015 and run by <b>Apiruk Kothi</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wantanee Tippaveth</b> and her husband <b>Methi Chinpa</b> aka <b>Boss Chinnapa</b>, and nine others were found guilty of running a Ponzi scheme known as the <b>Mae Manee</b> Ponzi scheme. They defrauded victims through a loan scam promising returns of 93% and causing total losses of 1.37 billion baht (approximately $51.3 million) to 2,533 people. Tippaveth and Chinpa were each sentenced to 12,640 years in jail, but the sentences were commuted to 5,056 years by the Criminal Court. The couple is expected to be in jail for just 20 years under the law of Thailand which limits jail time to 20 years.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-42630154929800437822023-04-30T17:56:00.001-07:002023-04-30T17:56:47.753-07:00April 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for April 2023. The good news is that the activity for Ponzi schemes was slightly lighter this month. But there were still 9 new Ponzi schemes and 2 guilty pleas reported. The average age for the alleged Ponzi schemers was approximately 43. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ted Brent Alexander</b>, of Mississippi, changed his plea to a guilty plea for his role in a Ponzi scheme run through <b>Madison Timber Properties</b> by <b>Lamar Adams</b>. Alexander was a lobbyist for the scheme and was charged along with <b>Jon Darrel Seawright</b> in connection with the scheme that involved $164 million. The scheme purportedly involved buying timber rights from landowners and reselling them to mills at higher prices.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marcus Todd Brisco</b>, 26, of Texas, was charged by the CFTC on charges that he and his companies, <b>Yas Castellum LLC</b> and <b>Yas Castellum Financial LLC</b>, ran a $146 million Ponzi scheme. Other co-defendants are <b>Tin Quoc Tran</b>, <b>Francisco Story</b>, <b>Fredirick Safranko</b>, <b>Michael Sims</b>, and <b>SAEG Capital General Management LP</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jason D. Bullard</b>, 58, of Minnesota, and his wife, <b>Angela Romero Bullard</b>, 50, were sued by the SEC alleging that they ran a Ponzi scheme from 2007 through 2021 that took in more than $18 million from 200 investors. The Bullards owed Empire Racing Stables LLC, a one timing winning horse operations. The SEC complaint alleges that the Bullards and their business, <b>Bullard Enterprises LLC</b>, promised returns of 10% to 12% annually from two funds used to trade foreign currencies. Some of the funds were used in their racing business and other unrelated ventures, including <b>DLJ Real Estate LLC</b> and <b>Empire Investments LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher Burns</b>, 40, of Georgia, was indicted on charges that he was running a Ponzi scheme through his entities, including <b>Investus Advisers, LLC</b>, <b>Investus Financial, LLC</b>, <b>Dynamic Money</b>, and <b>Peer Connect, LLC</b>. The scheme defrauded investors out of at least $10 million and ran from 2017 to 2020. Burns remains at large, having fled the day before he was scheduled to turn over documents to the SEC.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David J. Bunevacz</b>, of California, had a default judgement entered against him in an action brought by the SEC alleging that he took more than $32 million in investor funds in a cannabis oil related Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marc Celello</b>, 54, of Georgia, was ordered to pay $8.7 million for his part in a $40 million Ponzi scheme that defrauded about 100 investors. Celello is a disbarred attorney who was the general counsel for <b>Credit Nation Capital LLC</b> run by <b>James Torchia</b>, the mastermind of the scheme who was ultimately acquitted of criminal charges. The scheme involved promissory notes tied to life insurance policies and automobile loans.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stefan Ciopraga</b>, of Romania, and YieldTrust.ai were sued by state regulators in Montana, Texas, and Alabama in enforcement actions against the cryptocurrency trading platform. Ciopraga claimed that the decentralized application <b>DApp</b> aka <b>Yieldbot</b> is “powered by cutting-edge artificial intelligence.” Yieldbot promised returns of up to 2.2% per day.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael J. French</b>, of South Carolina, and his companies <b>MJF Holdings, LLC</b> and <b>MJF Capital LLC</b>, were charged by the SEC on allegations that they ran a fraudulent scheme that defrauded over 400 investors out of more than $20 million. French promised returns of 12% from loans to small businesses or investments in commercial loans on a fractional basis. The scheme ran for two years, and French used at least $13.2 million on personal expenses and to make Ponzi payments to earlier investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Harvest Keeper</b>, <b>Visque Capital</b>, <b>Coinbot</b>, and <b>QuantFund</b>, along with <b>Maxpread Technologies</b> and its CEO <b>Jan Gregory Cerato</b> were the subject of cease and desist orders from the California Department of Financial Protection and Innovation. The companies are all cryptocurrency companies using artificial intelligence technology.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael R. Kuntz</b>, of North Dakota, and his entities, <b>National Sports Opportunity Partners, LLC</b> and <b>ICON Investment Group, LLC</b> were accused of running Ponzi scheme. <b>Jeremy L. Carlson</b> operated and controlled <b>Jamieson Capital Financial, LLC</b> and he represented himself as Treasurer for National Sports Opportunity Partners, LLC.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rand Heckler</b>, 67, pleaded guilty to charges in connection with a $1 million Ponzi scheme. Heckler persuaded friends to invest in a hedge fund that he was managing that was invested in stocks.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua David Nicholas</b> was ordered to pay $300,000 as part of a consent judgment with the SEC in connection with a $40 million Ponzi scheme run through <b>Empires Consulting Corp</b>. The scheme involved a cryptocurrency platform called <b>EmpiresX</b>. Nicholas was previously sentenced to 51 months in prison in connection with the scheme run with alleged co-conspirators, <b>Emerson Pires</b> and <b>Flavio Goncalves</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rashawn Russell</b>, 27, of New York, was indicted on charges that he was running a crypto Ponzi scheme. Russell guaranteed returns to investors, sometimes promising up to 25%. He falsified bank statements and created fake wire transfer confirmations.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Johann Steynberg</b> was ordered to pay $1.73 billion in restitution to defrauded victims and another $1.73 billion in penalties in connection with the <b>Mirror Trading International</b> Ponzi scheme. The Bitcoin investment platform operated in South Africa and Australia and has been declared a Ponzi scheme. Over $589 million worth of cryptocurrency vanished from the firm, and at least 23,000 victims in the U.S, were impacted by the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Charles Winn LLC</b>, <b>Aaron David Scott-Britten</b> (aka <b>Aaron David</b> aka <b>Aaron Scott</b>, aka <b>Aaron David K. Britten</b>), <b>Ohran Emmanuel Stewart</b> aka <b>Elliott Stewart</b>, <b>Casey Alexander</b>, and <b>Charlie Jake Smith</b>, were sued by the SEC for allegedly running an $8.5 million Ponzi scheme. The scheme involved investments in the sale of fine wine to at least 121 investors. The co-defendants were to buy investment-grade wines for the investors, sell the wine at a profit, and share a portion of the profits with the investors. The investors were promised returns between 10% and 45%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nilish Kumar Kar</b> was arrested in connection an alleged online Ponzi scheme run through <b>Cloud-Fut</b>. The scheme defrauded more than 80,000 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sachin Pal</b>, <b>Ankush Singh</b> and <b>Kuldeep</b> were arrested on charges that they were operating a Ponzi scheme through <b>www.r46.in</b>. They promised commissions of 15% to 20% through a digital marketing site.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Sri Lanka</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">The accounts of the directors of <b>OnmaxDT Ltd</b>. were frozen in connection with an alleged crypto Ponzi scheme. The accounts were opened in connection with the <b>Binance.com</b> scheme. Accounts frozen were in the following names: <b>Dhananjaya Gayan</b>, <b>Sampath Sandaruwan Lenaduwage</b>, <b>Saranga Randika Jayatissa,Vikramapeli Gedera Chandrakanti</b> and <b>Kahadawa Arachchige Athula Indika Sampath</b>.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-24313808757387233802023-03-31T18:07:00.001-07:002023-03-31T18:07:47.868-07:00March 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for March 2023. This month revealed at least 13 new Ponzi schemes, 5 guilty pleas and over 30 years of new prison sentences. The average age for the alleged Ponzi schemers was approximately 48. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew Beasley</b>, 50, was indicted on charges relating to an alleged Ponzi scheme that took in about $460 million from more than 600 investors. Beasley was charged last year with one count of assault on a federal officer for pointing a gun at an FBI agent when investigating Beasley. The scheme involved the supposed purchase of insurance tort settlements where plaintiffs in personal injury lawsuits wanted to borrow money against their pending settlements with insurance companies. Investors were promised returns of at least 12.5% every 90 days. Beasley used the money to buy luxury homes, cars, and to pay for other personal expenses.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wynn Charlesbois</b> was indicted on new charges relating to an alleged Ponzi scheme that defrauded at least 39 investors out of $5.3 million. Charlesbois has pleaded not guilty to charges that he ran a Ponzi scheme involving loans, subscription agreements, co-investments, and participation investments. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ryan Crawford</b> aka <b>Brody</b>, 30, of Florida was charged in connection with an alleged scheme that took in $800,000 from investors. Crawford was to invest the funds in cryptocurrency and stocks, but instead spent the money on luxury rental cars and gambling. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Garrett Elder</b>, 30, of Alaska, was criminally charged in connection with a scheme run through <b>Tycoon Trading LLC</b>, <b>The Daily Bread Fund, LLC</b>, and other related entities. Authorities allege that they defrauded 130 investors out of approximately $25 million. Elder brought in about $30 million of investor funds, representing he was making money in securities and foreign currencies. He allegedly used some of the money to buy himself real estate, a boar, a camper and jewelry, among other things.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Yossi Engel</b>, 35, was indicted on charges that he ran a $47 million Ponzi scheme that defrauded mostly Orthodox Jews. Engel had fled to Israel in 2021 but was arrested in Los Angeles this month. Engel promised returns from his company <b>iWitness Tech</b> the supposed purchase and installation of security cameras as a means of protection as antisemitic incidents were rising in the U.S. He also said he would use their funds to purchase renovate and sell property in Israel.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Erasmus Frimpong</b>, 42, was sentenced to 10 years in prison and <b>Arley Ray Johnson</b>, 63, was sentenced to 6 years in connection with a $28 million Ponzi scheme. The third co-conspirator, <b>Dennis Jali</b>, fled to South Africa in 2019. The three were pastors who ran a fictitious financial literacy and wealth management firm called <b>The Smart Partners LLC</b>, doing business as <b>1st Million LLC</b> or <b>1st Million Dollars</b>. The scheme promised investors monthly returns as high as 35% in foreign exchange and cryptocurrency ventures. At least 1,200 investors were defrauded. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Daniel Eric Jay</b>, 46, pleaded guilty to charges that he worked with reality TV star <b>Maurice Fayne</b> aka <b>Arkansas Mo</b>, 39, and others to run a Ponzi scheme through <b>Flame Trucking LLC</b>. The scheme defrauded more than 20 people. Jay also assisted Fayne in obtaining a $3.7 million Paycheck Protection Program loan by providing false financial information with the loan application. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Min Woo Kang</b> aka <b>Kevin Kang</b>, of Florida, and <b>BKCoin Management LLC</b> were sued by the SEC and the subject of an asset freeze, as revealed in unsealed court documents. The scheme involved $100 million taken from 55 investors, and the asset freeze also involved <b>BKCoin Capital</b>; <b>BK Offshore Fund, Ltd</b>.; <b>BKCoin Multi-Strategy Master Fund, Ltd</b>.; <b>BKCoin Multi-Strategy Fund, LP</b>; <b>BKCoin Multi-Strategy Fund Ltd</b>.; and <b>Bison Digital LLC</b>. Investors were told their funds would be used for crypto asset trading. The SEC is seeking disgorgement from Bison Digital LLC, which allegedly received $12 million from the investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gregory D. Lone</b>, 55, was sentenced to 8 years in connection with a Ponzi scheme run through <b>Paramount Financial Advisors</b> from 2016 through 2019.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Aaron Cain McKnight</b>, 48, and his entities, <b>BPM Global Investments LLC</b> and <b>BPM Asset Management LLC</b> were charged by the SEC in connection with an alleged Ponzi scheme that defrauded at least 28 investors out of more than $8.4 million. The complaint also charges <b>Sherry Rebekka Sims</b>, <b>Harmony Brooke McKnight</b>, <b>Kenneth Miller</b>, 72, and <b>Frost & Miller</b> with aiding and abetting certain of the alleged violations, and names <b>Timothy Neher</b> and his company, <b>Accelerated Venture Partners, LLC</b>, as relief defendants.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Franklin Ray</b>, 51, of Michigan, pleaded guilty to charges relating to a $40 million Ponzi scheme run through his trucking business known as <b>CSA Business Solutions LLC</b>. Ray promised investors 77% of the net income from the operations of trucks that would perform delivery services for multinational e-commerce and shipping companies. Approximately 275 investors invested in the scheme. Ray claimed to have purchased over 2,00 trucks with the investors’ funds but in reality only operated a few trucks and had minimal revenue from trucking activities.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pablo Renato Rodriguez</b> pleaded guilty to charges relating to a crypto Ponzi scheme run through <b>AirBit Club</b>. AirBit was a purported cryptocurrency mining and trading platform and brought in more than $100 million. <b>Gutemberg Dos Santos</b> pleaded guilty in 2021. <b>Scott Hughes</b>, <b>Cecilia Millan</b>, <b>Karina Chairez</b>, and <b>Jackie Aguilar</b> have also pleaded guilty in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Schamens</b>, 65, of North Carolina, was indicted in connection with an alleged $7 million Ponzi scheme run through <b>TD Trading LLC</b>, <b>TFG Trading Fund LLC</b>, <b>Tradestream Analytics LTD</b>, <b>Tradedesk Financial Group Inc</b>., and others. Schamens promised returns of 12% to 30% from investments in <b>Tradestream Algo Fund</b>, an algorithm-based trading pool. The scheme defrauded at least 25 individuals out of approximately $7 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Noel Strachan</b>, of Florida, was indicted on charges that he, along with 10 others, defrauded thousands of Jamaicans out of hundreds of millions of dollars. Strachan, ran the scheme along with <b>Omar Etayem</b> aka <b>Omar Rivera</b>, <b>Odain March</b>, <b>Yegisibet Benli</b> aka <b>Lisa Benli</b>, <b>Yunior Muro</b>, <b>Michael Pardos</b> aka <b>Mario Cruise</b> aka <b>Gangster Mike</b>, <b>Anthony Jonas</b>, <b>Javier Arguelles</b> aka <b>Cuba</b>, <b>Marlon Foster</b>, <b>Demal Cheeks</b>, and <b>Derrol Scafe</b>. They stole or fraudulently obtained high end vehicles and either sold them or used them as collateral for loans. Strachan is the former head of now-defunct <b>Worldwise Partners</b>, that ran an unregulated alternative investment scheme over a decade ago. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David J. Varrone</b>, 56, was sentenced to 9 years in prison after pleading guilty to a Ponzi scheme in which he defrauded more than 40 investors out of about $3 million. His wife, <b>Sherry D. Varrone</b>, also pleaded guilty to her role in the scheme. The scheme was run through <b>The Credit Engineers, Inc</b>. from 2018 to 2021 and offered returns to investors from short-term investments linked to hedge funds. Varrone helped investors apply for high-interest, short-term loans and then the victims leased the proceeds to Varrone and his business. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen Keith Woodard, Sr</b>., of Hawaii was charged by the SEC in connection with an alleged Ponzi scheme that he was running as an unregistered investment adviser. Woodard raised approximately $6 million from about 30 investors who purchased promissory notes from <b>Morganwood Ltd</b>. Woodard promised a risk-free trading strategy.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John J. Woods</b>, 58, of Georgia, was charged and pleaded guilty to a Ponzi scheme run through <b>Horizon Private Equity III</b> that brought in more than $110 million from more than 400 investors. A final judgment was also entered against Woods in an action by the SEC that was brought in 2021. Woods used Horizon to purchase investment advisor, <b>Livingston Group Asset Management Company</b> dba <b>Southport Capital</b>. Woods had promised investors 6% to 7% annual interest paid in monthly installments, and investors lost over $25 million in the scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sabrina Ling Huei Wei</b>, <b>Justin Colin Villarin</b> and <b>James Bernard Law</b> were ordered to pay $1.5 million in sanctions and were banned from the securities industry in connection a $15 million Ponzi run through <b>DFRF Enterprises LLC</b> that defrauded more than 1,400 investors. Investors had been promised returns from supposed gold-mining operations in Mali and Brazil.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Anthony Constantinou</b> was accused of running a Ponzi scheme through <b>Capital World Markets Ltd</b>. that defrauded investors out of $61.7 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Egypt</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities arrested 29 people in an alleged criminal network that stole LE 19 million through a cloud mining scam called <b>HoggPool</b>. The HoggPool platform supposedly invested in cryptocurrency mining activities and promised users the possibility to rent “mining machines” to receive a daily profit of around 10%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Harchand Singh Gill</b>, a director of the <b>Pearls Group</b>, was arrested in connection with the Ponzi scheme founded by <b>Nirmal Singh Bhangoo</b>. The scheme had involved promising investors land in exchange for their investments, and over Rs 60,000 was stolen from investors. Gill was the director and shareholder of <b>PGF</b>, a Pearls Group Company.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities raided 15 locations in connection with an alleged Ponzi scheme run by <b>Lokesh Jain</b> and <b>Karthik Jain</b>. The scheme promised 12% returns and ran from 2005 to 2016.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are looking for <b>Md. Saif</b>, a man accused of running an international Ponzi scheme. <b>Rustam Khan</b> and <b>Md. Hakim</b>, the directors of <b>Hakim and Rustam Fabrics Private Limited</b>, were arrested in February. The scheme involved a betting app known as “<b>18football.com</b>.” <b>Naveen Poriwar</b>, the head of <b>Edudaddy Institute of Advanced Studies Private Limited</b>, was arrested in connection with the online betting scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Akshay Sanjay Dhanuka</b>, 32, was arrested in connection with an alleged online Ponzi scheme that brought in more than Rs 40 crore in 10 days. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Israel</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Ben-Ari</b> aka <b>Michael Greenfeld</b> was convicted in connection the operation of a $150 million Ponzi scheme run through <b>EGFE Israel Ltd</b>. that defrauded 1,000 investors in both the U.S. and Israel. He has been dubbed “the Israeli Madoff.”</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nigeria</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Barmise Samson Ajetunmobi</b>, the owner of <b>Imagine Global Holding Company Ltd</b>. and <b>Imagine Global Solutions</b> was arrested while trying to board a flight to the U.K. Barmise and his wife, <b>Elizabeth Ajetunmobi</b>, allegedly defrauded investors out billions of naira. They promised investors 10% returns monthly from supposed microloans to small and medium-sized companies and low-income workers in Africa. They used their company, <b>TFS Finance Ltd</b>., to lure in over 90,000 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Scotland</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alistair Greig</b>, 69, was jailed in connection with a £13m fraud. Greig had represented that he would place money in a short-term deposit scheme with the Royal Bank of Scotland for fixed periods of time. A total of 165 victims were identified. Greig used the money on a holiday home, a classic car business, and a Bentley and Range Rover, among other things.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Vietnam</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Management of Hanoi firm <b>Bankland</b> were arrested on allegations that they defrauded 4,000 people in a Ponzi scheme. Chairman <b>Quan Van Duong</b>, CEO <b>Nguyen This Nhu</b>, <b>Vu Due Tinh</b>, <b>Nguyen Due Minh</b>, and <b>Nguyen Van Minh</b> were arrested in connection with the scheme. The company represented that it was a property developer and car trader and promised returns of 43.2%. In reality, the company did not do any business.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-48865020046007772822023-02-28T20:37:00.002-08:002023-02-28T20:37:37.455-08:00February 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of Ponzi scheme activity reported for February 2023. This month revealed at least 7 new Ponzi schemes, 2 guilty pleas and over 29 years of new prison sentences. The average age for the alleged Ponzi schemers was approximately 54. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eddy Alexandre</b>, 51, pleaded guilty in connection with an alleged Ponzi scheme run through <b>EminiFX</b>. The scheme involved a cryptocurrency and forex trading platform that promised investors 5% weekly returns that were supposedly generated through a secretive robo-advising technology. Alexandre has agreed to forfeit $249 million that was obtained from investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gilbert Armenta</b>, 59, was sentenced to 5 years in prison in connection with the <b>Onecoin</b> scheme. Armenta is the former boyfriend of the founder of Onecoin, <b>Ruja Ignatova</b>. Armenta helped launder $300 million from the crypto Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ray Brewer</b>, 66, pleaded guilty to charges that he ran a Ponzi scheme involving cow manure. Brewer stole $8.7 million in connection with a scheme in which he claimed that he built anaerobic digesters on dairies in California that used microorganisms to break down biodegradable material, and turned it into methane. Brewer represented that he could then sell the gas on the open market. Investors were promised 66% of net profits and tax incentives.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marcus Todd Brisco</b>, of Hawaii, and his companies <b>Yas Castellum LLC</b> and <b>Yas Castellum Financial LLC</b>, were charged by the CFTC along with <b>Tin Quoc Tran</b> of Texas, <b>Francisco Story</b> of Utah, <b>Fredirick “Ted” Safranko</b> of Canada, <b>Michael Shannon Sims</b>, and <b>SAEG Capital General Management LP</b>. Tran was allegedly operating a fraudulent commodity pool scam that involved over $144 million taken from 913 pool participants with promises of returns from trading foreign exchange or margined or leveraged gold-U.S. dollar pairs. Brisco and his companies allegedly made misrepresentations to at least 43 pool participants through one company and to at least 57 participants through another, and then funneled the money to a Tran-controlled entity.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ramon Salvador Delgado-Gomez</b> aka <b>Ramon S. Gomez</b>, and his companies <b>FX Latino</b> and <b>FXL Investment PR LLC</b>, along with <b>Walmy Rivera-Santiago</b> and her company <b>JRH Services Inc.</b>, and <b>Hector Javier Santos-Pagan</b> and his company <b>Infinity Investment Construction Management Corp</b>. were sued by the CFTC on allegations that they were running a Ponzi scheme involving more than $27 million. The scheme involved pooled investments in retail foreign currency trading and targeted over 2,000 investors in Puerto Rico and the U.S. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John K. Eckerd</b>, 58, of Texas, was indicted along with <b>Afif Baltagi</b>, 45, in connection with an alleged Ponzi scheme involving the financing of giant tires used on mining and earth-moving vehicles. More than 50 investors were defrauded in the scheme involve $50 million. Eckerd and his co-conspirators represented that they had access to heavily discounted tires that they could sell at full price to buyers and could generate returns of up to 20%. Prosecutors say that almost no tires were actually bought and sold. Eckerd previously pleaded guilty to an unrelated scheme to launder money. <b>Jason E. Adkins</b>, 46, was previously convicted and sentenced in connection with the scheme. <b>Todd Wilkin</b>, 60, was also previously convicted in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Amberjit Endow</b> has been accused of running a more than $41 million investment fraud while working at Deloitte in Australia as a partner. The alleged scheme was run through his private company, <b>Endow Family Cap</b>, which is now under investigation. Endow promised investors returns of 39.02% in 6 months from the supposed purchase of Indian government-issued bonds. The bonds were purportedly linked to a large government infrastructure program that is improving India’s rural road network.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joseph W. Floyd, IV</b> and his brother <b>William F. Floyd Jr</b>., of North Carolina, were sentenced to 5 years in prison in connection with a Ponzi scheme they ran through their family insurance business, <b>Floyd Insurance Agency</b>. They took in more than $20 million through a supposed loan program in which 150 investors were given promissory notes and promised returns and redemptions upon demand.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ryan Guidry</b>, 45, was sentenced to 6 years and 6 months in prison for his role in the <b>DC Solar</b> Ponzi scheme. Guidry became vice president of operations in 2015, and prosecutors alleged that he knew that investors were being defrauded. The scheme was run by <b>Jeff Carpoff</b>, 52, and his wife <b>Paulette Carpoff</b>, 49. DC Solar manufactured solar generator units and claimed there were favorable federal tax benefits from investments in alternative energy, but the company sold more solar generators than they manufactured and falsified documents to conceal the fraud. Jeff Carpoff was sentence to 30 years, Paulette Carpoff was sentenced to 11 years and 3 months, and others have also been sentenced as follows: <b>Joseph W. Bayliss</b>, 47, was sentenced to 3 years, <b>Robert A. Karman</b>, 45, was sentenced to 6 years, and <b>Alan Hansen</b> was sentenced to 8 years. <b>Robert J. Roach</b>, 55, pleaded guilty and is awaiting sentencing.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Vladimir Okhotniko</b> aka <b>Lado</b>, <b>Olena Oblamska</b> aka <b>Lola Ferrari</b>, <b>Mikhail Sergeev</b> aka <b>Mike Money</b> aka <b>Gleb</b> aka <b>Gleb Million</b>, and <b>Sergey Maslakov</b> were charged in Oregon on allegations that they stole more than $340 million in connection with a cryptocurrency Ponzi scheme known as <b>Forsage</b>. The four and previously been charged along with 7 others by the SEC in connection with the alleged scheme that was a purportedly decentralized finance (DeFi) cryptocurrency investment platform. They used “smart contracts” which are self-executing contracts on the blockchain so that earlier investors would be paid money as soon as an investor would buy a slot in a contract.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeffrey Soberman Parket</b>, 59, of New York, pleaded guilty in connection with a $65 million Ponzi scheme that led to over $37 million in victim losses. Parket is a former bond trader and hedge fund founder and admitted to forging and falsifying documents to bring in more than $65 million in loans supposedly for short-terms funding for investment opportunities or to buy real estate. The scheme ran for six years.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Martin Silver</b>, 65, was sentenced to 13 months in connection with a $100 million Ponzi scheme run through <b>International Investment Group LLC</b>. His co-conspirator, <b>David Hu</b>, was previously sentenced to 12 years. The scheme involved over-valuing distressed loans and creating falsified documents and fake loans to hide losses. The company supposedly specialized in global trade financing, providing loans to small and medium-sized businesses in Central and South America using coffee, fish, and other food products as collateral. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Reva Joyce Stachniw</b>, 71, and <b>Ron Throgmartin</b>, 59, were each sentenced to 6 years in prison and ordered to pay more than $35 million in restitution and forfeitures. They promised 10% to 20% returns and raised $650 million by promising profits from a cattle business and a marijuana business known as <b>Universal Herbs LLC</b> in Colorado. The scheme ran from 2017 through 2019 and was operated along with <b>Mark Ray</b> who pleaded guilty in 2020.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Armen A. Temurian</b>, of California, and <b>Vista Network Technologies</b> were sued by the CFTC on allegations that they were running a Ponzi scheme involving Bitcoin. The scheme involved $7 million, and investors were promised returns from trading of digital assets using “robot traders” which did not exist. Investors were promised a 2.5% daily return or “double in just 80 days.”</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Spinina</b> was charged in connection with an alleged $180 million foreign exchange Ponzi scheme run through <b>Courtenay House</b>. Authorities allege that Spinina defrauded at least 585 investors, promising them returns from foreign exchange and futures markets. <b>Tony Iervasi</b>, the mastermind behind the Courtenay House scheme, was found guilty in 2022, and <b>Athan Papoulias</b> pleaded guilty just after that. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Colin Murphy</b>, 26, was accused of operating a Ponzi scheme within a Ponzi scheme. Murphy was allegedly working with <b>Aiden Pleterski</b> in connection with a $35 million scheme. Murphy allegedly raised over $850,000 for the cryptocurrency and foreign exchange trading company and showed investors his Porsche and Lamborghini as evidence of the returns on the investment. Murphy also stored boxes of cash at his grandfather’s house which he claimed were returns stored for other investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher Uitvugt</b> was permanently banned by authorities from working in the securities field or in the investment market. Uitvugt was the CEO of <b>Next Level Investments</b> and ran a foreign exchange scheme that promised 550% returns on a three-month term investment.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jagdish Mishra</b> was convicted and sentenced to 5 years in prison in connection with a Ponzi scheme run through <b>Raj Godson Services Private Limited</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities arrested two directors of <b>Hakim & Rustam Fabrics Private Limited</b> on allegations that they defrauded more than 800 investors in connection with a football betting and gaming App.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned against investing in what is alleged to be Ponzi schemes run through <b>Oyala</b>, which is an unregistered entity not licensed to sell investments to the public. Oyala supposedly invested in retail, education, real estate, banking, telecommunications, water infrastructure, renewable energy, electronics, information technology, automotive, healthcare, management, and business process outsourcing. The scheme promised 30% in a stable products investment program, 5% in welfare products, and 2% for indirect recommendations.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned that <b>Meta Trade</b> is operating as a Ponzi scheme which promised 30% returns after 5 days, 70% after 10 days, and 400% after 30 days.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned that <b>BKC Trading</b> is a Ponzi scheme that promises between 12% and 36% returns within three to six months.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>South Africa</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Dennis Mbongeni Jali</b>, a pastor wanted by the FBI, was arrested in connection with a $28 million scheme run through <b>Forex Billionaires Club</b>. Jali’s co-conspirators, John Frimpong and Arley Johnson, 63, posed as pastors as well, encouraging people to invest in a business that would supposedly help churches and congregants make money. The men ran an investment company called <b>The Smart Partners LLC</b> which operated <b>1st Million</b> or <b>1st Million Dollars</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Prosecutors indicted 8 people, including <b>Pattanapon Minthakhin</b> and his girlfriend, <b>Suteewan Thaweesin</b>, in connection with the <b>Forex-3D</b> alleged Ponzi scheme. </span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-66835489225224074302023-01-31T15:07:00.001-08:002023-02-16T14:06:43.635-08:00January 2023 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for January 2023.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">The start of 2023 saw at least 7 new Ponzi schemes reported worldwide, and at least 7 new criminal sentences were imposed for a total of about 32 years. There was also 1 guilty pleas and 3 criminal convictions. The average age for the alleged Ponzi schemers was approximately 49. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gregory Altieri</b>, 55, was ordered to pay $23 million to the SEC in connection with a Ponzi scheme that raised almost $70 million from at least 80 investors, most of whom were firefighters and police officers. The scheme promised returns ranging from 30% to 100% from a jewelry business. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Charles Richard Burgess</b> aka <b>Dick Burgess</b>, 67, of Vancouver, was sentenced to 6 years and 3 months in prison for a Ponzi scheme that defrauded 32 investors out of $4.3 million. Burgess had pleaded guilty, selling 64 investors $13.6 million in unregistered investments. He took more than the 50% of the pool profits that he represented was his fee, but tried to blame COVID-19 for the loss of funds.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carl Carro</b>, 62, and <b>James Doyle</b>, 74, were sentenced in connection with a Ponzi scheme run through <b>Endeavor Management Solutions</b> and <b>Endeavor Consultancy</b>. Carro was sentenced to 4 to 8 years and Doyle to 5 years’ probation. They took in over $1,000,000 from more than 50 investors. Endeavor was supposedly a headhunting firm hired by prestigious clients to find candidates for openings on their boards of directors. Carro and Doyle represented that the investor funds would be held in an untouched cash reserve account that held over $1 million, and investors were guaranteed a 10% to 20% return after 30 days. They spent over $500,000 of the funds on personal expenses and to pay returns to earlier investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Yossi Engel</b>, 35, of California, was sued by the SEC on allegations that he ran a $47 million Ponzi scheme through <b>iWitness Tech LLC</b> that targeted Orthodox Jewish community members from December 2018 to January 2021. Engel represented that he needed capital for his business installing security cameras and that investors would receive returns form fees generated by the business. iWitness was never profitable and only ever brought in about $20,000. Engel admitted to running a Ponzi scheme in 2021 and then fled to Israel. Engel spent the funds at casinos, flying on private jets, and funding a lavish lifestyle.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Arley Ray Johnson</b>, 63, of Maryland, was sentenced to 6½ years in prison in connection with a $28 million Ponzi scheme involving <b>1st Million</b>, a purported wealth management and financial literacy company. Johnson conspired with <b>Dennis Mbongeni Jali</b>, 37, and <b>John Erasmus Frimpong</b>, 42, to defraud investors through several related entities including <b>The Smart Partners LLC</b>, which did business as <b>1st Million Dollars</b> or 1st Million. The scheme promised monthly returns ranging from 6% to 35%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Katie Lynn Mancuso</b>, 41, of Tennessee, was sentenced to 5 years and 10 months in prison in connection with a $2.8 million scheme she ran through <b>Gray Area Marketing</b>. Mancuso had falsely represented that her agency had been awarded contracts to perform marketing services for professional athletes and she overstated Gray Area’s assets and receivables. She promised returns within 90 days of 15% to 25%. She solicited funds from at least 26 investors, causing total losses of more than $1.1 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert Cortez Marshall</b>, 43, was sentenced to 2 years and 10 months in prison in connection with a Ponzi scheme run through <b>R.B.J. Generational Wealth Management LLC</b> dba <b>Adz on Wheelz</b>. The scheme solicited more than $5 million from more than 200 investors. Marshall represented that Adz on Wheelz owned and operated a fleet of luxury vehicles that could be customized for digital advertising and that the company received millions of dollars in contracts from advertisers. Investors were promised guaranteed weekly returns and told they could cancel anytime and receive a refund of their investment. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Austin Danger Ellison-Meade</b>, 24, was sued by the SEC on allegations that he defrauded 31 investors out of $2.8 million. Ellison-Meade represented he was using a proprietary trading algorithm that he developed and that he was the managing partner of an investment club and pooled investment vehicle called <b>Baycap.io</b>. The SEC alleges that Ellison-Meade did not use the funds to invest but represented to investors that “this year we have a projection of around 800% returns.” </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Kumar Arun Neppalli</b>, 56, was indicted on 23 charges relating to an alleged Ponzi scheme that targeted the Indian American community in North Carolina. Neppalli, a native of India, allegedly defrauded 15 investors out of $1.9 million in connection with business loans and </span><span style="font-family: verdana;">12 investors out of $900,000</span><span style="font-family: verdana;"> in a real estate development scheme in North Carolina.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Nestor Nuñez</b> a/k/a <b>Salvador Molina</b>, 64, was arrested in Spain on fraud charges, and <b>Ramon Perez</b>, 40, surrendered in connection with an alleged cryptocurrency Ponzi scheme known as <b>Forcount</b>. Last month, criminal charges were brought against <b>Francisley Da Silva</b>, <b>Juan Tacuri</b>, and <b>Antonia Perez Hernandez</b> in connection with the scheme. The scheme was based in Brazil and defrauded Spanish-speaking investors. Perez is accused of laundering proceeds through shell companies and real estate. Nunez is accused of being an actor paid by Da Silva to present himself as Forcount’s CEO using the alias Salvador Molina. <b>Jose Ramiro Coronado Reyes</b> has also already been charged in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Judith Dianne Paris-Pinder</b>, 49, of Florida, was sentenced to 4 years in prison in connection with a Ponzi scheme that defrauded more than 500 people out of $2.4 million. Paris-Pinder was president of <b>Pinder Associations Inc</b>. and took in about $4.6 million from investors under the pretense that she represented litigation plaintiffs who had settled claims and were just awaiting payouts from insurance companies. Paris-Pinder solicited funds from “hard money lenders” to finance payments to the plaintiffs pending payment of the settlement checks, at which time she represented she could pay returns as high as 50%. She previously pleaded guilty and admitted that she did not work with lawyers and that there were no settlement agreements.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Abner Tinoco</b>, 27, of Texas, pleaded guilty to charges relating to his operation of a Ponzi scheme. The scheme brought in about $9 million, and Tinoco spent about half of that on personal expenses including luxury cars, private jets, real estate, and jewelry. Tinoco represented that he would invest their funds in cryptocurrency and foreign exchange markets. The CFTC had previously reported that Tinoco misappropriated over $7.2 million from at least 322 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>MD Nurul Hague</b>, <b>Khagokpam Jogeshwari Devi</b>, and <b>Nongmaithem Sharmila Devi</b> were found guilty of running a Ponzi scheme through <b>MDFI</b>. The mastermind’s father-in-law, <b>Khagokpam Kham ba Singh</b>, and brother-in-law, <b>Khagokpam Naoba Singh</b>, are also under investigation.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities arrested <b>Sanasam Jacky Singh</b>, the managing director of <b>Lamjingba Group of companies</b>, in connection with an alleged Ponzi scheme. The scheme allegedly took in more than Rs 580 crore with a promise of exorbitant returns.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sheikh Sadiq Ali</b>, <b>Yogesh N., Pramod Gopinath</b>, and <b>Sunil Joshi</b> were arrested in connection with an alleged Ponzi scheme run through <b>E-Biotorium Network Private Limited</b> that received investment funds from over 1,000 customers. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><u><b>Philippines</b></u></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities issued a warning against investing in <b>Ground Zero Poultry Agricultural Corporation</b>. The SEC warned that the company “is enticing the public to participate in its poultry farm pursuits” and stated that investors could invest P20,000 with 36% returns and up to 80% guaranteed returns for lockup periods of 6 months or 12 months.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">The Securities and Exchange Commission shut down <b>Silverloin Livestock Trading Corp</b>. on allegations that it was running a Ponzi scheme. The scheme promised returns of 2.3% per day or 35% after 15 days. Criminal charges were filed in December 2022 against CEO <b>Ryan Cagod Ladoing</b>, <b>Renan Lara Ladoing</b>, <b>Rosemarie Alvarez Guzman</b>, <b>Neña Ewayan Algoy</b>, <b>John Paul Dellara Lopez</b> and <b>Michael Villalobos Berja</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Singapore</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Daryl Cai Yonghui</b>, 32, was arrested in Thailand in connection with the <b>Forex-3D</b> Ponzi scheme. The scheme defrauded thousands of investors out of more than $608 million. Dozens have been arrested in connection with the scheme, and <b>Eddy Polgari</b> is still at large. Forex-3D founder <b>Apirak Kothi</b> was arrested a year ago.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ong Jian Zhen</b> was arrested in Thailand and is wanted in Singapore in connection with an alleged Ponzi scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Police issued 11 arrest warrants in connection with the dietary supplement company <b>Primaya</b>, including for <b>Pichnaree Tantiwit</b> aka <b>May Primaya</b>, the CEO of Primaya. The charges related to wildly exaggerated advertisements for the investment scheme on TikTok and other social media platforms. The company claimed that investors could earn up to 15 million baht in 3 months from an investment of 6,000 baht.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-1059068801829364182022-12-31T11:38:00.000-08:002022-12-31T11:38:05.225-08:00December 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for December 2022. Closing out the year, at least 13 new Ponzi schemes were reported this month. There were 2 guilty pleas and 3 criminal convictions. About 70 years of prison sentences were imposed. The average age for the alleged Ponzi schemers was approximately 45. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rodney Buckle</b>, 65, of Nevada, was arrested and accused of running a Ponzi scheme through businesses called <b>Rodd United</b>, <b>Rodd U</b>, and <b>Rodd One</b>. He called himself a life coach and financial advisor, offering supposed guidance on stock investments and sports betting. Buckle’s co-defendant, <b>Warisra Stevens</b>, pled guilty last year to securities fraud and was sentenced to 19 months in prison. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Carmona</b>, <b>Marco Ruiz Ochoa</b>, <b>Moses Valdez</b>, <b>Juan Arrellano</b>, <b>David Brent</b>, and <b>Gustavo Rodriquez</b> were charged in connection with two alleged cryptocurrency Ponzi schemes known as <b>IcomTech</b> and <b>Forcount Trader Systems</b> (later known as <b>Weltsys</b>). <b>Francisley Da Silva</b>, <b>Juan Tacuri</b>, and <b>Antonia Perez Hernandez</b> were also charged in connection with their involvement with Forcount. IcomTech and Forcount were purported cryptocurrency mining and trading companies. Investors were promised returns in exchange for their purchase of purported cryptocurrency-related investment products. As investors started making complaints because they could not make any withdrawals, the promotes started offering proprietary crypto-tokens known as “<b>Icoms</b>” in the IcomTech scheme and “<b>Mindexcoin</b>” in the Forcount scheme, that they represented would eventually be worth a lot of money. More than $8.4 million was raised in connection with the schemes.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mauricio Chavez</b>, 41, and <b>Giorgia Benvenuto</b>, 55, are being investigated by the SEC in connection with an alleged Ponzi scheme run through <b>CryptoFX, LLC</b>. More than 5,000 are believed to have invested in the company, which targeted mostly Latino immigrants. Investors were promised up to 15% profit per month.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Milendophe Duperier</b>, 31, and his fiancée, <b>Vanessa Joseph</b>, of Massachusetts, were charged in connection with an alleged Ponzi scheme that targeted members of the Haitian community. Duperier is the son of a pastor at a Haitian church, and he worked with Joseph to keep the scheme going for over 2½ years. The pair represented that they had discovered a method to achieve profits by trading options in both bear and bull markets. Neither had any formal training in investing, however. They promised annual interest rates of 60%, paid monthly, but allegedly used the money for their personal expenses, and to buy real estate and luxury vehicles.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Fernandez</b>, 26, and his two companies, <b>Avail Progression</b> and <b>Elite Generators</b>, were charged by the SEC on allegations that the unregistered schemes were operating fraudulent forex trading schemes. The SEC alleges that they raised over $4.3 million and defrauded more than 100 investors. Fernandez represented that he was a “trading savant with a proven track record who could guarantee returns up to 100% based on his trading strategies in the forex markets.” Instead, Fernandez misappropriated the money to fund his personal lifestyle and made a “litany of excuses” when investors asked for their returns. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Andrew Fuller</b>, 55, is facing extradition in connection with an alleged Ponzi scheme run through <b>Bordeaux Cellars Ltd</b>. and <b>Bordeaux London</b>. Fuller is accused of lying about the size and vintage of the firm’s fine wine collection and defrauding investors out of $99 million. Fuller is alleged to have assisted the firm founder <b>Stephen Burton</b>, who pleaded guilty in 2019. Fuller denies the charges and opposes his extradition.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eugene Fusting</b>, 79, and <b>Christopher Fusting</b>, 52, father and son, were convicted of running a Ponzi-like scheme through a pooled investment fun in securities. They obtained $800,000 but spent the money on personal expenses instead. Eugene was sentenced to 18 months home detention, and Christopher will serve 12 months home detention.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Karl Sebastian Greenwood</b> pleaded guilty to charges in connection with the <b>OneCoin</b> Ponzi scheme. Greenwood was a co-founder of the scheme along with <b>Ruja Ignatova</b>. The scheme took in more than $4 billion worldwide.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher Humphries</b>, 48, lost his motion to dismiss charges by the SEC against him in connection with an alleged scheme run through <b>CJ Investments LLC</b>. A court found that the SEC properly alleged that Humphries sold unregistered securities, was not a registered broker or dealer, and made misleading misrepresentations in connection with an alleged Ponzi scheme run by Las Vegas attorney, <b>Matthew Beasley</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Austin Delano Page</b>, 27, was sentenced to 8 years in prison and <b>Brandon Alexander Teague</b>, 27, of North Carolina, was sentenced to 4 years in prison in connection with a scheme that defrauded over 300 victims out of more than $4 million. Page and Teague were operating the hedge fund scheme through <b>D&T Investment Group</b> and were supposedly investing in various securities. They promised that principal investments were guaranteed and that investors would receive 70% of the trading profits.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Christopher A. Parris</b>, 42, of Georgia, was sentenced to 20 years and 4 months in prison and ordered to pay $160 million in restitution in connection with the scheme run with business partner, <b>Perry Santillo</b>, 41, through <b>Lucian Development</b> that raised money for <b>City Capital Corporation</b>, a business run by <b>Ephren Taylor</b>. The scheme involved over $115.5 million and defrauded over 1,000 victims. Parris had previously pleaded guilty. Santillo was previously sentenced to 17½ years in prison. In addition to the Ponzi scheme, Parris had also offered to sell the veterans administration $125 million worth of N95 masks through his company <b>Encore Health Group</b>, and attempted to get a $3 million dollar payment upfront, knowing he did not have the masks. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Volodimyr Pigida</b>, 48, was convicted on charges relating to a multimillion Ponzi scheme that he ran with his wife, <b>Marina Bondarenko</b>, 39, through <b>Trend Sound Promoter AMG Corp</b>. The scheme was a “work-at-home” email scheme that supposedly conducted advertising and music promotion over the internet. The scheme brought in $22 million, but investors lost about $11 million. Bondarenko pleaded guilty in 2019 and was sentenced to 3 years, 2 months in prison.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mark Ramkishun</b>, 28, of New York, was charged on allegations that he was running a Ponzi scheme that defrauded more than 20 people out of more than $1.3 million. He targeted members of the Healing Center Church, and the church also invested in the scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Frank Schneider</b> is facing charges in connection with the $4 billion <b>OneCoin</b> Ponzi scheme according to a 2020 indictment unsealed this month. The OneCoin scheme was launched in Bulgaria in 2014, founded by <b>Ruja Ignatova</b> who remains at large. <b>Christopher Hamilton</b> has been extradited to the U.S. and <b>Robert McDonald</b> has avoided extradition on human rights grounds. <b>Mark Scott</b>, the lawyer behind OneCoin, was found guilty in the U.S. of laundering $400 million for the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeremy Spence</b>, 25, of Rhode Island, was ordered to pay over $2.8 million in restitution in connection with the <b>Coin Signals</b> cryptocurrency Ponzi scheme. Spence fraudulently solicited investors to invest in digital assets such as bitcoin and ether. He was sentenced to 3½ years in prison in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jay Taylor II</b> pleaded guilty in connection with a $14 million Ponzi scheme that defrauded more than 70 investors. More than 70 investors lost more than $3.5 million in an oil and gas scheme. Taylor promised returns from oil and gas sales revenue on refurbished leases. <b>Bill Marcum Jr.</b> is a co-defendant in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Frederick Voight</b>, 65, was sentenced to 6½ years and ordered to pay over $40 million in restitution in connection with a Ponzi scheme run from 2009 to 2018. Voight ran the scheme through <b>F.A. Voight and Associates, LP, (FAVA)</b>, <b>Voight Financial Services, Inc.</b>, and <b>Daystar Funding, LP</b>. Voight represented to investors that he would search for companies that had an "excellent and innovative product in a growing market" but were short of the cash needed to take their product to market. The investors lost more than $40 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><u><b>India</b></u></span></p><p style="text-align: justify;"><span style="font-family: verdana;">At least 7 people were arrested in connection with an alleged Ponzi scheme. <b>Godevari Street</b> ran the scheme through <b>Nine Star Enterprises</b>, bringing in funds and then fleeing with the money. <b>Vanaparthi Venkata Naga Mani Kumar</b>, 48, was one of the accused that was arrested.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Israel</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Ben-Ari</b> aka <b>Michael Greenfeld</b> was extradited from Bosnia in connection with a $150 million Ponzi scheme. Ben-Ari is to stand trial for allegedly defrauding investors for 15 years in a large scam in Israel. Ben-Ari has been called the “Israeli Madoff” and ran the scheme through his investment company, <b>EGFE Israel Ltd</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">A bench warrant was issued for <b>Dr. Victoria Yemisi Imase-Regal</b> in connection with an alleged N36.45 Ponzi scheme. She was charged along with her four companies, <b>Yellowpoint Group</b>, <b>Media Enterprise</b>, <b>Yellowpoint Investment Limited</b> and <b>Yellow Point FT. International Limited</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Pakistan</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sidra Humaid</b> has been accused of stealing about Rs 420 million from investors, mostly women, in a Ponzi scheme. Humaid owns the “<b>Daily Bites</b>” which is a monthly ballot committee system, and she promoted her scheme on social media.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ryan Cagod Ladoing</b>, 36, is on the run as authorities investigate a scheme Ladoing ran through <b>Silverloin Livestock Trading Corp</b>. Criminal charges were filed against the company's incorporators and officers <b>Renan Lara Ladoing</b>, <b>Rosemarie Alvarez Guzman</b>, <b>Neña Ewayan Algoy</b>, <b>John Paul Dellara Lopez</b>, <b>Michael Villalobos Berja</b> and <b>Ladoing</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Regulators issued cease and desist orders against <b>Sophia Francisco Holding OPC</b> and <b>Beastnessallday Corp</b>. The scheme guaranteed earnings as much as 3% daily for 20 days, or 10% to 12% per month and supposedly involved investments, sale of gadgets, real or personal properties, luxury vehicles, shoes and other apparels.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities confirmed that <b>OTCJKE</b> (also known as <b>OTC Automated Trading Platform</b> and <b>JKE International Limited</b>) and the <b>A Power</b> (also known as <b>APower Pro</b>, <b>A Power PH</b>, <b>APower Power Bank</b>, <b>APower Power Bank Sharing Solution OPC</b>) are illegally soliciting investments. OTCJKE represented that it was a “high-frequency trading encryption platform,” and promised investors that they would earn between 3% and 8% daily which they could withdraw anytime. APower represented that it was a Silicon Valley company and is “an innovative intelligent infrastructure manufacturer and operator for consumer scenarios, that it is committed to mobile charging solutions, providing users with convenient and timely mobile power rental services.”</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are warning the public to exercise caution in dealing with <b>Royal Bull Master Trading International</b> and <b>SPBoss</b> (<b>SPower</b> or<b> Sun Power</b>) as they are alleged to be running Ponzi schemes. The companies were offering 120% returns in 7 days and 180% in 30 days. Investors were also promised 10% to 50% referral commissions.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Korea</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Six executives in the <b>V Global</b> cryptocurrency scheme were sentenced. V Global was a crypto exchange that promised around 50,000 investors 300% returns along with referral fees for brining in new customers. <b>Mr. Yang</b> and <b>Mr. Oh</b> received 8 and 3-year sentences, respectively, and four others received three-year sentences and five years of probation. The CEO known as <b>Mr. Lee</b> was sentenced to 22 years in early 2022.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Spain</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>James Robinson</b>, 46, and <b>David Kennedy</b>, 47, were arrested in Spain in connection with the <b>Bar Works</b> Ponzi scheme. They received more than $2 million in commissions from their efforts through their company, <b>United Property Group</b>, to solicit more than $7.5 million into the scam. The U.S. is seeking extradition of the two. The Bar Works scheme offered investments into former bars and restaurants around the world and obtained more than $57 million from at least 800 victims. One of the other perpetrators, <b>Briton James Moore</b>, 60, was previously sentenced to 11 years in prison, and <b>Savraj Gata-Aura</b>, 36, pleaded guilty and was sentenced to 4 years. <b>Renwick Haddow</b>, the main promoter of the scheme, has not yet been sentenced.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>United Arab Emirates</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Edvard Sabirov</b> was arrested in connection with the <b>Finiko</b> investment scheme that defrauded investors in Russia out of about $95 million. <b>Zygmunt Zygmuntovich</b> was arrested in UAE early in the month, and Russia is pursuing extradition of both back to Russia. Finiko was a crypto investment fund and operated as a multilevel marketing scheme that offered returns of up to 5% a day. <b>Marat Sabirov</b> is still at large. </span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-81650646604992644702022-11-30T20:50:00.000-08:002022-11-30T20:50:14.668-08:00November 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;">Posted by Kathy Bazoian Phelps </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for November 2022. There were at least 7 new Ponzi schemes revealed this month. There were two guilty pleas and one ‘not guilty’ plea. There was also one criminal conviction this month and more than 64 years of prison sentences were imposed. The average age for the alleged Ponzi schemers was approximately 43. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Syed Arham Arbab</b>, 25, was sued by the SEC along with five others in connection with a “free-riding” scheme in which they made more than $2 million in bogus deposits into brokerage accounts. Arbab is just set to begin a 5-year prison sentence after pleading guilty to running a Ponzi scheme from a fraternity house near the University of Georgia. The current scheme involves using “instant deposit” credit they obtained from the brokerage firms to buy and sell securities online and then to quickly withdraw profits before their accounts were frozen. Arnab’s co-defendants are <b>Tomas Javier Jimenez</b>, 24, <b>Blake Douglas McKinney</b>, 26, <b>Mushfiqur Rahman</b>, 21, <b>John Ryan Shows</b>, 25, and <b>William Carl Spagnoli</b>, 24.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">BMO Harris Bank was hit with a jury verdict of $484 in actual damages and $79 million in punitive damages on charges that Marshall & Illsley Bank (M&I), which BMO Harris Bank had acquired in 2011, aiding and abetted Thomas Petters in the breach of his fiduciary duty to his firm, <b>Petters Company Inc</b>. Petters ran a massive Ponzi scheme through <b>Petters Group Worldwide</b> that stole more than $3.7 billion from victims.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Bunevacz</b>, 53, of California was sentenced to 17.5 years in prison in connection with a $35 million Ponzi scheme involving cannabis. He raised a total of $45.2 million from more than 100 investors. Bunevacz is an American Philippine citizen who is a former UCLA decathlete. He defrauded victims by promising returns from financing companies that marketed cannabis vape pens. Instead, he spent the money on a luxury home, vacations, jewelry, and other lavish expenses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tommie “Tom” Carter Jr</b>, 64, was convicted and sentenced to 40 years in prison in connection with a scheme in which he took in over $1 million from investors. Carter promised returns from the buying and reselling of real property and distressed business equipment. <b>Derrick R. Trussell</b> is a co-defendant who pleaded guilty in connection with his role of fraudulently offering securities. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marc Celello</b>, 51, was sentenced to two years in prison in connection with this role in a $40 million Ponzi scheme. Celello, a former attorney, pleaded guilty in 2019. Celello was the vice president and general counsel of <b>Credit National Capital LLC</b>, a company run by <b>James Torchia</b> that purchases life insurance policies and subprime automobile loans. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wynn A.D. Charlebois</b>, 52, of North Carolina, was accused of running a Ponzi scheme and pleaded not guilty. The indictment alleges that Charlebois ran the scheme from 2015 through October 2022 and took in more than $6.9 million from more than 39 investors. The alleged scheme was through <b>WC Private</b>, <b>Wilcox Hybrid</b> and <b>Damon Investments</b>. Charlebois represented that he had stock options in certain companies and investors could purchase the options and make profits. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>FTX</b> owned by <b>Sam Bankman-Fried</b>, 30, filed bankruptcy. While no determination has yet been made that FTX was operating as a Ponzi scheme, the allegations of fraud and lack of any internal controls or accounting were substantial. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rathnakishore Giri</b>, 27, of Ohio, was arrested on charges that he was running a cryptocurrency investment scheme that raised at least $10 million from investors. The indictment states that Giri held himself out as an expert cryptocurrency trader with a specialty in bitcoin derivatives and promised investors profits with no risk to principal. In reality, Giri was allegedly using funds from new investors to pay off earlier investors. Giri was charged by the CFTC earlier in the year.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brad Heinrichs</b>, of Idaho, was sentenced to a year of house arrest and 10 years of probation for his role in a Ponzi scheme run by <b>Stephen J. Hatch</b>. The scheme defrauded over 100 investors and involved the use of Bible quotes and religion to prey on investors. Over $82 million was raised on promises of returns from real estate, but the real property was over-leveraged despite promises to investors that their investments were secured by deeds of trust.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Horizon Private Equity III LLC</b> and <b>Livingston Group Asset Management Co</b>. dba <b>Southport Capital</b> were ordered to pay $60.9 million and $5 million, respectively, in connection with a Ponzi scheme that left investors with claims of $110 million. <b>John J. Woods</b>, the architect of the scheme, disputes the SEC’s allegations that he was running a Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jebara Igbara</b>, aka <b>Jay Mazini</b>, 27, of New Jersey, through his Instagram account, pleaded guilty to running a Ponzi scheme that targeted New York’s Muslim-American community. He solicited money in return for stock, electronics, and COVID-19 protective equipment and also created a bitcoin scheme promising high rates of return in a short period of time. Igbara allegedly stole at least $8 million. Igbara launched <b>Halal Capital LLC</b> in 2019 and claimed he was worth $33 million. In March, Igbara was sentenced to 5 years in prison for kidnapping and beating a rival who threatened to expose him.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Adrian John Kawuba</b>, 33, of Massachusetts, was charged in connection with a sports venture in Africa. Kawuba promised returns to investors through supposedly lucrative “international sports and entertainment projects, principally in Africa.” He offered returns as high as 60% from the supposed finance of “short-term private financing solutions to soccer clubs for transfer market transactions and deals.”</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Royce Newcomb</b>, 60, of California, was indicted on charges that he ran a $4.2 million Ponzi scheme through <b>Strategic Innovations LLC</b> and that he took out fraudulent COVID-19 and other government loans of more than $260,000. Newcomb’s company supposedly made technology that was to fight package thefts and prevent weather damage to packages. The scheme ran for about 5 years.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua David Nicholas</b> was sentenced to 4 years and 3 months in prison in connection with the crypto platform, <b>EmpiresX</b>. Nicholas claimed that EmpiresX would make daily “guaranteed” returns using a trading bot that utilized “artificial and human intelligence” to maximize returns. Nicholas operated the scheme with <b>Emerson Pires</b> and <b>Flavio Goncalves</b>. The scheme run for two years.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Steven Parish</b> and his company <b>Premiere Global Corporation</b>, of Kentucky, were sued by state securities commissions on allegations that they are running a Ponzi scheme. Parish and other owners raised about $100 million from at least 570 investors, using the money to buy real estate in Belize and Las Vegas. Parish is currently on the run.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sergei Potapenko</b> and <b>Ivan Turõgin</b>, both 37 and from Estonia, were arrested in Estonia following a joint investigation by U.S. and Estonian authorities. They are accused of running a series of cryptocurrency and money laundering scams that defrauded hundreds of thousands of victims out of $575 million. The scheme was running since 2013 under the business called <b>HashCoins</b>. The business purportedly manufactured and sold Bitcoin and other virtual-currency-mining hardware and equipment, requiring full payment when equipment was ordered. In reality, the company did not manufacture its own equipment and instead of providing refunds, the company promised a percentage of profits from a new mining operation called <b>HashFlare</b>. They also created another company called <b>Polybius Bank</b> that was to be funded through an initial coin offering that raised more than $25 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jamie Thompson</b> and <b>William Logsdon</b> were arrested and charged with running a scheme through <b>National Royalty Group</b> that involved the selling of oil and gas leases. The scheme defrauded investors out of nearly $1 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Douver Torres Braga</b>, 45, <b>Joff Paradise</b>, 60, <b>Keleionalani Akana Taylor</b>, and <b>Jonathan Tetreault</b> were sued by the SEC for their roles in the <b>Trade Coin Club</b> Ponzi scheme that raised more than 82,000 Bitcoin valued at $295 million from more than 100,000 investors worldwide. The scheme promised returns from the trading activities of a purported crypto asset trading bot that supposedly made “millions of microtransactions every second” to assure minimum daily trading profits. The scheme promised .35% daily. Tetreault agreed to pay about $781,000 to settle an SEC complaint that he had run a Ponzi scheme that raised $295 million in Bitcoin..</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tony Iervasi</b> pleaded guilty to charges relating to a $180 million Ponzi scheme run through <b>Courtenay House</b> and <b>Courtenay House Capital Trading Group</b>, both of which are now in liquidation.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Two individuals were accused of running two Ponzi schemes through <b>Aryan Pratidin Fund</b> and <b>Aryan Reserve Fund</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Malta</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned that <b>QuickX Ltd.</b> is a Ponzi scheme involving cryptocurrency. QuickX was launched in 2018 by brothers <b>Vaibhav Adhlakha</b> and <b>Kshitij Adhlakha</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Korea</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Two suspects were wanted in connection with an international scheme that defrauded thousands of victims in South Korea. The Polish suspect, 49, and the German suspect, 61, were arrested in Greece and Italy.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are investigating a crypto mining firm names <b>Btbank</b> aka <b>OK-Bit</b>, which has failed to pay back investors after promising monthly returns of up to 12%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b><span style="white-space: pre;"> </span></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are seeking extradition of two individuals, one Hungarian, <b>Eddy Polgari</b>, and another Singaporean, <b>Daryl Cai Younghui</b>, in connection with the <b>Forex-3d</b> scam. They are among 16 suspects in connection with the Forex-3D scheme and believed to be close friends of <b>Apiruk Kothi</b>, the owner of Forex-3D.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Trinidad and Tobago</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">New regulations make it a crime to “establish, operate, advertise or participate in ‘prohibited schemes’” which includes Ponzi and pyramid schemes. The regulations also criminalize activity of inviting people to join a prohibited scheme – “For knowingly advertising or inviting another person to join a prohibited scheme a person is liable, if convicted, to pay $2,000,000 or to imprisonment for 3 years.”</span></p><div><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-1593173084687264892022-10-31T18:17:00.000-07:002022-10-31T18:17:15.777-07:00October 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for October 2022. New Ponzi schemes and lots of prison sentences dominated the Ponzi scheme news this month. There were at least 7 new schemes reported worldwide and 101 years of prison sentences were imposed. The average age for the alleged Ponzi schemers was approximately 52. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Acker</b>, 53, of Florida, was sentenced to 11 years in prison and ordered to pay $3.2 million in restitution in connection with a $4 million scheme that he ran through shell companies including <b>Miracle Strip Holdings X LLC</b>, <b>Miracle Strip Holdings XV LLC</b>, <b>Fujimo Development LLC</b>, and <b>Shipwreck Road LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Atkins</b>, 49, is being held in custody in Ohio as authorities seek to extradite him to Singapore in connection with an alleged $4 million Ponzi scheme. Atkins is one of three directors of <b>Aureus Capital</b>, a foreign exchange trader in Singapore. The scheme promised returns of 40% to 50%. Atkins had fled Singapore by obtaining a new passport at the U.S. Embassy in Jakarta after his original passport had been taken by Singaporean authorities,</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Darrek Arnold Aviss</b>, 64, of California, was sentenced to 11 years and one month in prison and ordered to pay about $14.5 million in restitution in connection with a scheme that stole about $14 million. The scheme involved the purchase of annuities from insurance companies based in Switzerland and promised interest rates ranging from 5% to 7%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Vania May Bell</b>, 57, of New Jersey, was sentenced to 6½ years in prison and ordered to pay about $8 million in restitution in connection with the scheme run through <b>Executive Compensation Planners</b>. Bell helped run the scheme with her father, <b>Hector May</b>. The scheme involved more than $11 million stolen from 15 clients. May is currently serving a 13-year prison sentence.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua Burrell</b>, 39, was sentenced to 4 years in prison and ordered to pay $5 million in restitution in connection with a scheme that brought in $6.3 million from 14 investors. The scheme was run through <b>Activated Capital</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mauricio Chavez</b>, 41, of Texas, was sued by the SEC in connection with his company, <b>CryptoFX</b>, which he founded with <b>Giorgio Benvenuto</b>, 55. The SEC alleges that Chavez was running a Ponzi scheme that defrauded 5,000 investors, mostly in the Latino community. Chavez represented that investors could earn back half their investment in profits in 3 months and 90% in six months. The scheme raised more than $12 million but only $1 million was invested in crypto assets. Most of the money went to buy real estate, was used for personal expenses, and was diverted to their company, <b>CBT Group</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael J. DaCorta</b>, 57, of Florida, was sentenced to 23 years in prison in connection the scheme run through <b>Oasis International Group, Ltd</b>. At least 700 investors lost more than $80 million in the scheme. Investor were told the investments were risk-free and that OASIS was profiting by being a “market maker” and collecting “spread” on FOREX trades. In fact, Oasis had no true revenue. DaCorta used investor funds to buy a Maserati and Range Rovers for his family members, a country club membership, multiple million-dollar homes in Florida, college tuition for family members, flights on private jets, and vacations.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ray E. Grabato II</b>, 43, <b>Daniel Coley O’Brien</b>, <b>Thomas Nicholas Salzano</b>, 64, and <b>Arther S. Scuttaro</b>, 62, along with the New Jersey-based company, <b>National Realty Investment Advisors, LLC</b> (NRIA), were charged by the SEC in connection with an alleged scheme that raised approximately $650 million from about 2,000 investors. The scheme promised investors returns of up to 20% from the supposed purchase and development of real estate properties. <b>Olena Budinska</b> and <b>Jamie Samul</b> aka <b>Jamie Samul Salzano</b> were named as relief defendants. The real estate fund was operated through <b>NRIA Partners Portfolio Fund I LLC</b>. Salzano, Scuttaro, and Grabato were criminally charged. Scuttaro pleaded guilty.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Arley Ray Johnson</b>, 63, or Maryland, was convicted in connection with a $28 million Ponzi scheme run through <b>The Smart Partners LLC</b> dba <b>1st Million</b> and <b>1st Million Dollars</b>. Co-defendant <b>Dennis Mbongeni Jali</b> fled the country but has since been arrested in South Africa, and co-defendant <b>John Erasmus Frimpong</b>, 42, previously pleaded guilty. 1st Million held itself out as a wealth management and financial literacy company and offered a 12-month guaranteed investment contracts called “Corporate Guarantees.” Monthly returns of 6% to 35% were promised to investors, and more than 1,200 investors were defrauded. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Anna Kline</b> fka <b>Jordana Weber</b>, 33, of New Jersey, was indicted on charges relating to all alleged $7 million advance fee Ponzi scheme. Kline owned and operated several companies that purported to loan money to small business in high value loans, often in excess of $100 million. A fee of up to 5% of the potential loan amount was charged as a “fee” prior to the loan being funded. Kline used the fees for personal expenses, along with her significant other, Jason Torres. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ari J. Lauer</b> was sued by the SEC in connection with the <b>DC Solar Solutions</b> Ponzi scheme. The SEC alleges that Lauer deceived investors and help run the fraudulent scheme that brought in more than $910 million of investor funds. Lauer was paid more than $4.4 million in ill-gotten gains. Lauer was allegedly aware of the lack of legitimate lease revenue and provided false financial information to at least one investor. Owners <b>Jeffrey Carpoff</b>, 51, and <b>Paulette Carpoff</b>, 48, were sentenced to 30 years and 11 years, respectively.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Andrew Middlebrooks</b>, of Michigan, was charged with running an alleged Ponzi scheme through <b>EIA All Weather Alpha Fund Partners</b>. He developed a specialized research program to analyze stocks and funds in real time but was unable to produce the returns promised to investors. Middlebrook reported positive returns of 135.74% when he knew EIA had incurred losses over $13 million. The alleged losses to at least 100 investors exceeded $27 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Richard Lee Ramirez</b>, 53, of California, was indicted on charges that he was running a “Ponzi-style” scheme through his company, <b>JMJ Capital Group</b>. The alleged scheme brought in at least $8 million from investors, promising returns of 10% to 14% within 90 days based on the supposed purchase and resale of personal protective equipment (PPE), factoring of accounts receivable, imports of furniture, and refurbishment of cruise ship air-conditioning units. Instead, Ramirez used the funds to pay for luxury cars, travel, other personal expenses, and to pay other investors. He allegedly stole at least $5 million of the $8 million he received from investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Perry Santillo</b>, 42, of Pennsylvania, was sentenced to 20 years in prison in connection with the Ponzi scheme run through <b>First Nationle Solution LLC</b>, <b>Percipience Global Corporation</b>, and <b>United RL Capital Services LLC</b>. The business reportedly used several names including <b>Advice and Life Group</b>, <b>Poconos Investments</b>, <b>First American Securities and Financial Planners Group of America</b>. Santillo admitted in his plea agreement that he took in approximately $115 million from investors who lost $70.7 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Trendon Shavers</b>, of Texas, was ordered imprisoned for civil contempt after he refused to produce certain documents and payments to the SEC. Shavers and his company, <b>Bitcoin Savings and Trust</b>, were previously sued by the SEC on allegations that they were running a bitcoin Ponzi scheme. Separately, Shavers pleaded guilty to criminal fraud charges. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Stephen Romney Swensen</b>, deceased, was sued by the SEC in Utah along with others in connection with a Ponzi scheme that defrauded more than 50 investors out of more than $29 million. Investors placed their money with <b>Crew Capital Group LLC</b>, a Nevada entity, and were promised returns between 5% and 10%. Crew Capital did not purchase any securities with the money, but Swensen siphoned off the money for his own expenses instead. Clients were given false documents showing <b>Pacific Investment Management Company</b> as a subadvisor to Crew Capital. The SEC alleges that Crew Capital continues to display false information to investors on its website and the investor funds sent to Crew Capital is now being spent and dissipated.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Varrone</b>, 56, and his wife <b>Sherry Varrone</b>, of Florida, were charged in connection with an alleged scheme run through <b>The Credit Engineers Inc</b>. that took in approximately $6.4 million. The scheme was a credit leasing scheme in which individuals with good credit were offered a short-term “Credit Leasing” investment program that was tied to a purported hedge fund that would pay a guaranteed return and fully repay the loans within 3 years or less. The Varrones helped victims apply for the high interest, short-terms loans and then “lease” the proceeds to The Credit Engineers. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Brazil</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities raided 20 addressed linked to the crypto fraud network controlled by <b>Francisco Valdevino da Silva</b> aka “<b>Sheikh dos Bitcoins</b>.” The scheme promised returns of up to 20% and took about $766 million from thousands of investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sabrina Ling Huei Wei</b>, <b>James Bernard Law</b>, and <b>Justin Colin Villarin</b> were found to have conspired in securities violations in connection with a scheme run through <b>DFRF Enterprises LLC</b> that was promoted by <b>Daniel Fernandes Rojo Filho</b>. They were found to have actively solicited investors on DFRF’s behalf when they knew or should have known that Filho was running a fraudulent scheme. The scheme promised investors returns from gold mining operations in Africa and Brazil that did not actually exist.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Larry Renton</b>, who was being investigated for running a Ponzi scheme through <b>The Miami Group</b>, passed away. Renton was 58 and was a retired police officer who had allegedly defrauded friends and fellow officers.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Ames</b>,70, was sentenced to 12 years in prison in connection with a Ponzi scheme that defrauded more than 8,000 investors out of £398 million. The scheme involved luxury Caribbean holiday homes and was run through <b>Harlequin Group</b>, a hotel and resort development venture. Harlequin sold about 9,000 property units to investors, but fewer than 200 were actually built.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Abdul Mukith</b>, 42, was sentenced to 8½ years in jail in connection with a scheme run with four others through <b>Essex and London Properties Ltd</b>, which falsely claimed to refurbish properties along the Elizabeth Line.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>PGI Global U.K</b>. was shut down after it allegedly defrauded investors out of about $709,000. Investors were promised returns of up to 200%. PGI is part of <b>Praetorian Group International Trading</b>, which was shut down by the U.S. Department of Justice. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">The crypto trading app, <b>Ece Limited</b>, vanished and is being investigated by authorities. The platform had more than 19,000 members. Ece claimed to be a U.S.-based firm and gave a $200 bonus to those who brought in new investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jaydeep Raha</b>, the managing director of <b>Jetex Ocenair Pvt Ltd</b>. was arrested on allegations he was running a fraudulent scheme in which Rs 1.83 crore were diverted to the account of <b>OAK India Multistate Credit Co-operative Society</b> of which Raha is the current managing director. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pradeep Sethy</b> was sentenced to 5 years in prison in connection with a Ponzi scheme run through <b>Artha Tatwa Group</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sanjay Kumar Singh</b> was arrested on allegations that he colluded with <b>Soumyarp Bhowmik</b> in connection with a Ponzi scheme run through <b>Sunmarg Welfare Organisation</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Sri Lanka</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Five individuals, including <b>Shamal Keerthi Bandara</b> and <b>Zhang Kai</b>, were arrested in connection with a cryptocurrency Ponzi scheme called Sports Chain, which was supposedly a cryptocurrency investment platform. Investors were directed to transfer their “Sports Chain coins” to an option called the “Power Pool” where the coins would supposedly be multiplied times 5.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Uganda</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>BLQ Football Club</b> shut down after cause losses that are believed to be greater than Shs60 billion.</span></p><div><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-88085667818176696432022-09-30T20:40:00.001-07:002022-10-12T08:10:53.474-07:00September 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for September 2022. News in cryptocurrency schemes was prevalent this month, with 16 cryptocurrency firms hitting the Ponzi scheme news. At least 16 new Ponzi schemes worldwide were reported this past month, along with 4 guilty pleas, and more than 88 years of prison sentences. The average age for the alleged Ponzi schemers was approximately 47. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Glenn Arcaro</b>, 45, of California, was sentenced to 38 months in prison in connection with the <b>BitConnect</b> cryptocurrency scheme. He fraudulently marketed the scheme that defrauded at least 4,500 people and involved $2.4 billion. Arcaro promised guaranteed returns from BitConnect’s “Trading Bot” and “Volatility Software.” BitConnect’s founder, <b>Satish Kumbhani</b> of India, was indicted earlier this year. <span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Timothy Lynch Barton</b>, 59, of Texas was charged in connection with an alleged fraudulent scheme run through the real estate development firm, JMJ, and real estate investment firm, <b>Carnegie Development</b>. Barton pitched real estate investment opportunities in Texas to investors in China, promising annual interest payments for two years and a return of principal at the end of the second year. The SEC charged Barton, <b>Stephen Wall</b>, and <b>Michael Wu</b> and sought the appointment of a receivership over hundreds of acres in North Texas.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tochukwu Abel Edeh</b>, 32, a Nigerian national from Florida, pleaded guilty to charges relating to a purported cryptocurrency trading service called <b>Felsic Global Trading</b>. Edeh is a used car dealer who laundered the proceeds of the scheme and transferred funds to Nigeria. Edeh is also a defendant in a case brought by the CFTC that has been stayed pending resolution of the criminal case.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gabriel Edelman</b> and his companies, <b>Creative Advancement LLC</b> and <b>Edelman Blockchain Advisors LLC</b>, were sued by the SEC on allegations that they were running a cryptocurrency scheme. The scheme involved approximately $4.4 million and at least 4 investors who were promised returns from supposed investment in cryptocurrencies. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Shawn Edward Good</b>, 55, of North Carolina pleaded guilty to charges in connection with a $7.2 million Ponzi scheme that resulted in losses of at least $2 million to at least 12 victims. Good solicited funds from his investment advisory clients and promised them returns of 6% to 10% from “low-risk investments.” He arranged for some of his clients to obtain a liquid asset line of credit secured by their investment or retirement accounts and directed then to transfer the funds to their personal bank accounts and then wire the funds directly to Good’s personal bank account. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas Huling</b>, 58, of Rhode Island, pleaded guilty to charges relating to a Ponzi scheme involving 10 victims and losses between $1.5 million and $3.5 million. He promoted investment projects including high-yielding bond trading platforms, a car emissions reduction technology, and an online advertising and marketing company.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Carlos Maldonado</b> was sentenced to 11 years and 3 months in prison and ordered to pay almost $2 million in restitution for his role in operating a Ponzi scheme through <b>Business Planning</b>, <b>Resources International Corporation</b>, <b>Glorimar Fashions and Tailoring, LLC</b>, and <b>Global Business Insurance Agency Inc</b>. and associated with <b>Pet Card Systems, Inc</b>., and <b>Datavos Corporation</b>. There were 46 victims of the scheme in Puerto Rico and the continental U.S. Maldonado failed to disclose that the investment funds he fraudulently obtained were used to buy and sell stocks and commodities through personal trading accounts and were spent on personal expenses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua David Nicholas</b>, 28, of Florida, pleaded guilty in connection with his role in the global cryptocurrency Ponzi scheme, <b>EmpiresX</b>. Nicholas, along with EmpiresX’s founders, <b>Emerson Sousa Pires</b>, 33, and <b>Flavio Mendes Goncalves</b>, 33, of Brazil, promised guaranteed returns of up to 1% per day from an alleged proprietary artificial intelligence-powered “trading bot.” The scheme defrauded investors out of approximately $100 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>James Clark Nix</b>, 74, of Texas, was sentenced to 48 years in prison in connection with a Ponzi scheme that defrauded 40 victims out of at least $6 million. The victims were clients of his accounting practice, and he promised them returns of up to 10% if they invested in his company. Nix spent the money on personal expenses and renting mansions across the country. His son, <b>Bradley Nix</b>, previously pleaded guilty, was sentenced to 4½ years in prison, and testified against his father.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Judith Dianne Paris-Pinder</b>, 49, of Florida, was charged on allegations that she was running a $4.6 million Ponzi scheme through <b>Pinder Associates, Inc</b>. Paris-Pinder promised returns as high as 50% to investors who would lend money to plaintiffs in litigation who had settled their litigation claims but were still waiting for settlements payments from the insurance companies. She did not, however, have any relationships with lawyers representing litigation clients and there were no settlement agreements. Paris-Pinder spent about $1 million on wedding and vacation expenses and other entertainment. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pavel Ruiz</b>, 29, of Florida, was charged by the SEC in connection with an alleged $196 million Ponzi scheme run through <b>MJ Capital</b> and <b>MJ Taxes and Moreby</b> by <b>Johanna M. Garcia</b>. MJ Capital and MJ Taxes are currently under a receivership. Over 15,400 investors were allegedly defrauded in the scheme. The SEC alleged that Ruiz and his team of about 70 sales agents raised at least $46 million from over 5,100 investors for the MJ Capital scheme. He represented that the investor funds would be used to make small business loans called merchant cash advances. Ruiz retained $6.5 million of the funds in his personal accounts or of his companies, <b>MJCF LLC</b> and <b>UDM Decorating</b>. Garcia called herself the Mother Teresa of Florida. Both Garcia and Ruiz have partially settled with the SEC.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brian Simms</b>, 44, of Indiana, was charged in connection with an alleged Ponzi scheme run through his company, <b>Brendanwood Financial Brokerage LLC</b>. Simms was a licensed insurance broker but not licensed to sell securities. He persuaded his clients to liquidate traditional long-term insurance products and reinvest at Brendanwood. Authorities allege that a total of almost $4 million was misappropriated from the victims.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeremy Spence</b>, 25, of Rhode Island, was sentenced to 3 years and 6 months in prison in connection with his cryptocurrency trading business known as <b>Coin Signals</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Quadrino</b>, 52, pleaded guilty to charges relating to a Ponzi scheme run through <b>Princess Cut Industries, Inc</b>., <b>Sassy Jewelry Buyers, Inc</b>., and <b>Golden Glitter Trading, Inc</b>. The scheme defrauded about 80 victims out of at least $3.5 million based on promised returns from the supposed sale of gold, jewelry and diamonds to refineries and jewelers. Quadrino promised guaranteed returns at the end of a fixed period.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">The California Department of Financial Protection filed cease-and-desist orders against 11 cryptocurrency firms, accusing them of Ponzi-like conduct and violations of state securities laws. The companies are identified as the following in a press release from the department:</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Cryptos OTC Trading Platform Limited</b> d/b/a <b>COTP</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Elevate Pass LLC</b> – purported crypto asset advertising and trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>GreenCorp Investment LLC</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Metafiyielders Pty Ltd</b> d/b/a <b>Metafi Yielders</b> – purported DeFi platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Pegasus</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Polinur ME Limited</b> – purported metaverse software development company</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Remabit</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Sity Trade</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Sytrex Trade</b> – purported crypto asset and forex trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>Vexam Limited</b> – purported crypto asset trading platform</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span><b>World Over the Counter Limited</b> d/b/a <b>World OTC</b> – purported crypto asset trading platform </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Raju Sahani</b> was arrested and his home was searched in connection with an alleged Ponzi scheme run through <b>Bardhaman Sanmang Welfare Trust</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Devendra Kumar</b> was arrested on charged that he defrauded 600 people in a Ponzi scheme run through <b>BLS Realty Infra India Limited</b> and <b>BLS Co-operation Credit Society</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Singapore</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Iseli Rudolf James Maitland</b>, 63, and <b>How Soo Feng</b>, 48, were each sentenced to three years and 10 months in jail in connection with a scheme run through <b>The Gold Label</b>. The scheme sold gold to more than 2,000 customers, promised returns as high as 24%, and took in more than $120 million in a “buyback” scheme. <b>Wong Kwan Sing</b>, 50, was sentenced to two years and 10 months in jail earlier this year after pleading guilty.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Africa</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Standard Bank was ordered to freeze the bank accounts of suspected Ponzi scheme <b>Lyoness South Africa</b>. Lyoness is a multilevel marketing scheme that was founded in 2003 by Hubert Friedl in Austria and eventually spread to about 40 countries. The scheme is believed to have 190,000 members in South Africa and involve at least R4.75 billion. Members received commissions for introducing members to the scheme. The company developed <b>Project X</b> in which they promised returns of thousands of times the amount invested. Lyoness required members to check boxes on the website to agree to changes in the products, otherwise they would lose their entire investment. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Craig Massyn</b> was fined R20 million for running a project similar to a Ponzi scheme through <b>Praesidium Advisory Services</b>, <b>Praesidium Wealth</b>, and <b>Praesidium Sentinel</b>. The companies were engaged in trading foreign currency, but the funds they received were paid to <b>Octox</b> and <b>Imagina FX</b>, two companies linked to Massyn. Co-directors <b>Andrew Cunningham-Moorat</b> and <b>Brett Bukes</b>, were fined R2.5 million and 6.5 million, respectively. Two employees of Praesidium, <b>Cindy Lee Schuster</b> and <b>Ryan van Niekerk</b>, were both fined R300 000.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Yunus Moolla</b>, 61, was sentenced to 15 years in prison after pleading guilty in connection with a Ponzi scheme that defrauded 3,799 investors out of R500m. The scheme promised returns of between 2% and 8% per month from the deal and trade of diesel and petroleum products. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Spain</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities opened an investigation of <b>JuicyFields</b>, a medicinal cannabis investment platform. The company offered investors returns of up to 66% from the cultivation, harvesting and sale of legal cannabis plants. A group of 1,200 investors filed a class action against the company after operations and cash withdrawals were halted in July. It is estimated that there are 4,500 victims in Spain alone. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Assets were seized from the home of <b>Nitikorn Inta</b>, the CEO of <b>P Miner Cryptocurrency Group</b>, on allegations that the company was offering more than 30 investment projects that amounted to a Ponzi scheme. The scheme brought in about 438 million baht.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Thai celebrity <b>Pattanapon “DJ Man” Minthakhin</b> and his wife, singer <b>Suteewan “Baitoey” Thaweesin</b>, were charged over their role in the Forex-3D online Ponzi scheme. Actress <b>Savika “Pinky” Chaiyadej</b>, along with her mother and brother, were indicted last month in connection with the scam.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-43517788800643814412022-08-31T20:40:00.003-07:002022-10-12T08:12:19.982-07:00August 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps </b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for August 2022. The reported stories reflect at least 4 new Ponzi schemes worldwide, 1 guilty plea, more than 71 years of prison sentences, and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gino Accettola</b>, 55, was sentenced to 11 years and 3 months in prison in connection with a scheme in which 17 people were defrauded out of over $4 million. He promised investors high short-term returns from investments in supposed commercial construction projects in Michigan and Florida. <span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jason E. Adkins</b>, 46, of Ohio, was sentenced to 9 years in prison in connection with a $50 million Ponzi scheme. Investors were promised returns of 15% to 20% from the supposed purchase and resale of discounted tires. The scheme took in more than $80 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Phillip Michael Carter</b>, 44, of Texas was assessed about $12.4 million in fines and penalties in connection with his role in a $44 million Ponzi scheme. The SEC charged Carter along with <b>Bobby Eugene Guess</b> and <b>Richard Tilford</b> and alleged that they defrauded 270 investors. The scheme involved short-term, high-yield promissory notes issued by shell companies involving real estate transactions. Carter was sentenced to 45 years in prison and ordered to pay $30 million in restitution earlier this year. Guess is currently serving a 12-year prison sentence after pleading guilty to a similar but unrelated scheme. Tilford was sentenced to 40 years in state prison.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Thomas Coelho</b>, fka <b>Thomas Jurewitz</b>, 52, was sentenced to 10 years in prison after pleading guilty to a scheme involving live event ticket resales. He represented that he was using connections to ticketing insiders in the live entertainment business to purchase event tickets at face value and then he would resell them at a profit. He defrauded victims out of $1.8 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Raymond Erker</b>, 52, of Ohio, was sentenced to nearly 22 years in prison in connection with a $9.3 million Ponzi scheme that defrauded at least 54 clients. Erker, a former financial advisor, promised returns from annuities and secured notes that were supposedly low risk and had guaranteed returns. Erker created fake websites and account statements in defrauding over 50 victims, many of them elderly. Two co-defendants in the scheme previously pleaded guilty and were sentenced earlier this year.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Rathnakishore Giri</b>, of Ohio, and his two companies, <b>SR Private Equity LLC</b> and <b>NBD Eidetic Capital LLC</b>, were sued by the CFTC in connection with an alleged Ponzi scheme that solicited over $12 million and 10 Bitcoin from over 150 investors. Giri was supposedly a digital asset trader but allegedly made false or misleading statements to customers in guaranteeing profits, among other things. Giri’s parents, <b>Giri Subramani</b> and <b>Loka Pavani Giri</b>, were named as relief defendants.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tytus W. Harkins</b>, 39, was ordered to pay $10.5 million in connection with a trailer park Ponzi scheme. The SEC had accused Harkins of making false statements to investors in connection with his scheme run through <b>Hartman Wright Group, LLC</b>. The scheme raised more than $8 million from investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pavel Ramon Ruiz Hernandez</b>, 29, of Florida, was charged in connection with an alleged scheme run through <b>MJ Capital Funding, LLC</b> that involved over $42 million. The scheme involved merchant cash advances, which is a type of short-term financing used by smaller businesses. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Scott A. Kohn</b>, 68, of California, was sentenced to 10 years in prison in connection with the $300 million Ponzi scheme run through <b>Future Income Payments LLC</b> fka <b>Pensions, Annuities, and Settlements LLC</b>. The scheme caused losses to more than 2,500 retirees and had put more than 13,000 veterans into exploitative loans. The scheme solicited pensioners by offering upfront lump-sum payment in exchange for an assignment of the rights to their monthly pensions and disability payments. The assignment transactions were characterized as sales but were actually loans with annual interest rates as high as 240%. Others who have previously pleaded guilty in connection with the scheme are <b>Kraig S. Aiken</b>, 53, of California, <b>David N. Kenneally</b>, 59, of South Carolina, <b>Melanie Jo Schulze-Miller</b>, 40, of Arizona, and <b>Joseph P. Hipp</b>, 52, of Missouri.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Malekzadeh</b>, 39, and his company <b>Zadeh Kicks LLC</b>, of Oregon, were charged in connection with an alleged high-end sneaker scheme. Zadeh Kicks promised the early release of high-end shoes to buyers before other competitors. Some day-traders and sneaker enthusiasts were in the business of flipping shoes such as Air Jordans and reselling them at a higher price. Zadeh Kicks offered to sell shoes such as Nike Air Jordon 11 Cool Grey sneakers for $115, which was less than the $225 sold on Nike’s official website. Other highly sought-after sneakers were also sold for below-market prices before manufacturers released them to the public. About $70 million was taken into the fraudulent scheme that had about 600,000 orders. Only 6,000 orders could be filled. Malekzadeh spent the cash on luxury cars and about $3 million on Louis Vuitton merchandise. Malekzadeh’s fiancé, <b>Bethany Mockerman</b>, has also been charged in connection with the scheme. The government seized millions of dollars in cash and goods.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sean Michael Mueller</b>, 53, of Colorado, pleaded guilty to charges in connection with a Ponzi scheme that netted $71 million from 65 investors, including Hall of Fame quarterback John Elway. Mueller was accused of failing to deposit investor funds into brokerage accounts as promised and also of creating phony account and brokerage statements.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Vladimir Okhotnikov</b>, Jane Doe a/k/a <b>Lola Ferrari</b>, <b>Mikhail Sergeev</b>, and <b>Sergey Maslakov</b> plus seven other U.S.-based defendants were charged by the SEC with running a cryptocurrency Ponzi scheme known as <b>Forsage</b>. The scheme raised more than $300 million from retail investors worldwide. The SEC alleged that the only source of revenue was funds received from investors. The US-based defendants are <b>Cheri Beth Bowen</b>, 44, of Mississippi; <b>Ronald R. Deering</b>, 69, of Idaho; <b>Samuel Ellis</b>, of Kentucky; <b>Mark Hamlin</b>, of Virginia; <b>Carlos L. Martinez</b>, 54, of Illinois; <b>Alisha R. Shepperd</b>, 34, of Florida; and <b>Sarah Theissen</b>, of Wisconsin. Ellis and Thiessen reached settlements with the SEC that include disgorgement and civil penalties. The promoters of the scheme were known as the <b>Crypto Crusaders</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alexandra Robert</b>, 23, of Florida and of Haitian descent, was charged in connection with a scheme that took in more than $900,000 from 80 investors in the Haitian-American community. She ran the scheme through <b>Chalala Academy LLC</b> and <b>Lendvesting Academy Corp</b>, offering investment programs with “risk-free” investments with up to 48% returns. Robert was supposedly making loans to small business borrowers who could not qualify through traditional lenders.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Reva Joyce Stachniw</b>, 70, of Illinois, and <b>Ron Throgmartin</b>, 58, of Georgia, were convicted in connection with a Ponzi scheme. Authorities had alleged that the defendants raised more than $650 million from investors, promising investors that their investments were backed by short-term investments in cattle. The scheme was run through <b>MR Cattle Production Services LLC</b> in Colorado to help solicit investors. The defendants also solicited funds for a Colorado-based marijuana business, <b>Universal Herbs LLC</b>. Investors were promised returns of 10% to 20% over periods as short as a few weeks.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew J. Turnipseede</b>, 49, of Nevada, was charged in Ohio in connection with an alleged sports-betting Ponzi scheme that defrauded 72 investors out of more than $8.5 million. Turnipseede allegedly falsely claimed that investor funds would be used to make sophisticated sports wagers using an algorithm that generated double-digit returns. He allegedly emailed fraudulent financial statements to the victims and did not ever actually generate the promised profits.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Voyager Digital</b>, which filed bankruptcy last month, has been accused of running a Ponzi scheme that has resulted in more than 3.5 million investors to lose $5 billion collectively. Both Voyager CEO, Stephen Ehrlich, and Shark Tank icon Mark Cuban, have been named in a class action lawsuit for their role in promoting the alleged cryptocurrency Ponzi scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Lee D. Weiss</b>, 51, of Pennsylvania, was sentenced to 5 years in prison and ordered to pay $7.5 million in restitution in connection with a Ponzi scheme that defrauded clients out of more than $7 million. Weiss had pleaded guilty to the scheme run through <b>Family Endowment Partners, LP</b>, an investment adviser registered with the SEC. Weiss supposedly invested the client funds in a now-defunct Florida tobacco company and other private securities offerings, but instead used the funds for personal expenses and to pay other investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Argentina</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Javier Milei</b>, 51, an Argentine presidential candidate, was sued in connection with an alleged crypto Ponzi scheme. Milei promoted <b>CoinX</b> on his Instagram account with 1.3 million followers. CoinX has been accused of running a Ponzi scheme that defrauded investors out of between 30 million and 40 million pesos (about $300,000).</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joe Papalia</b>, 72, pleaded not guilty to stealing about $19 million in an alleged Ponzi scheme. Papalia remains in prison on allegations that he ran a scheme that defrauded his clients in his role as an accountant and financial advisor.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Arnold Breitkreutz</b>, 74, was sentenced to 10 years in prison and ordered to pay $3.1 million in restitution in connection with the Ponzi scheme run through <b>Base Finance and Base Mortgage</b>. Breitkreutz raised more than $27 million from investors, along with his partner, <b>Susan Way</b>, under the pretense of doing mortgage lending. The scheme defrauded more than 400 investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua James Tenhove</b>, 50, was sentenced to 4 years in prison and ordered to pay more than $3.2 million in restitution. Tenhove previously pleaded guilty to charges related to the scheme that involved the sale of light towers.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Assets of <b>Burdwan Sunnmarg Welfare Organization</b> were attached by authorities on charges that it was running a Ponzi scheme. <b>Soumyarup Bhowmik</b> is the chairman of the company. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Satish Kumbhani</b>, the founder of <b>BitConnect</b>, is wanted in India. Kumbhani disappeared in February 2022 after he was indicted in the U.S. in the $2.4 billion Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Kazakhstan</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities in Kazakhstan are investigating a crypto-mining business known as <b>Bincloud</b> as being an alleged fraudulent scheme. Promoters convinced investors to invest in the business offering mining equipment rentals, and investors were promised daily returns of 5% to 6%. The investigation is part of a larger effort to fight cryptocurrency-related crimes, as Kasakhstan has attracted mining enterprises due to its low electricity rates. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Thailand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Actress <b>Savika Chaiyadej</b> aka <b>Pinky</b>, and her mother, <b>Sarinya</b>, along with 17 others were indicted on charges in connection with an alleged foreign exchange futures investment scheme known as <b>Forex-3D</b>. The scheme offered returns of 80% and about 14,000 investors invested about 1.9 billion baht. <b>Apirak Kotethi</b> is the mastermind of the scheme. </span> </p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-14243050841675648352022-07-31T21:00:00.001-07:002022-10-12T08:12:23.786-07:00July 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for July 2022. The reported stories reflect at least 3 new Ponzi schemes worldwide, 2 guilty pleas, more than 53 years of prison sentences, and an average age of approximately 47 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Paulette Carpoff</b>, 48, was sentenced to 11 years in prison and ordered to pay $661 million in restitution in connection with the scheme run with her husband, <b>Jeff Carpoff</b>, through <b>DC Solar</b>. Jeff Carpoff was previously sentenced to 30 years in prison and ordered to pay $790.6 million in restitution. DC Solar manufactured solar generator units to be mounted on trailers, but generators were sold that did not exist.<span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Celsius Network LLC</b> filed for bankruptcy amidst lawsuits alleging that the company was running a Ponzi scheme. The lawsuits allege that the crypto lender artificially inflated the price of its own digital coin and offered large interest rates to attract new investors when it had a cash crunch. Celsius filed for bankruptcy after freezing customer funds last month. Celsius supposedly made money by lending to institutional borrowers at higher interest rates than it offered for deposits. Alexander Mashinsky and other Celius executives have been accused of enriching themselves at the customers’ expense. A former employee has sued the company for manipulating the cryptocurrency markets.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mark and Sharon Dente</b> were sued by the state of Ohio on allegations that they ran a Ponzi scheme. The scheme was a house-flipping business through <b>EM Capital Fund</b> and allegedly defrauded more than 90 investors out of $53.1 million. Investors were promised returns as high as 36% over 9 months.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew Eckstein</b>, 52, of New York, was sentenced to 10½ years in prison in connection with a $12 million Ponzi scheme. Eckstein previously pleaded guilty to the scheme run through <b>Conmac Funding Corp</b> that targeted nearly 50 victims. Eckstein was a CPA and financial advisor who used his role to defraud mostly elderly victims into investing in Conmac owned by <b>Kevin Brody</b>. Eckstein and Brody used the stolen funds to invest in other business enterprises, for personal purchases, and for a down payment on a home. Brody was previously sentenced to 7 years in prison. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jordan E. Goodman</b>, 67, marketed as “America’s Money Answers Man” was charged by the SEC in connection with advising people to invest in the <b>Woodbridge Group</b> Ponzi scheme. The scheme, run by <b>Robert Shapiro</b>, lured in investors in a real estate scheme that involved $1.2 billion. Goodman helped Woodbridge raise $147 million from 1,200 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Patrick O. Howard</b>, 50, of Texas, was ordered to pay back $2.8 million in connection with a scheme that defrauded more than 100 investors. Howard previously pleaded guilty to the scheme that promised investors a 12% return. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ruja Ignatova</b>, 42, was added to the FBI’s Most Wanted List with a $100,000 reward. Ignatova, a Bulgarian women known as the “Queen of Cryptography,” is wanted in connection with the One Coin cryptocurrency Ponzi scheme. Ignatova and her co-conspirators raised at least $3.4 billion in connection with the scheme, seeking to replace bitcoin as the world’s leading cryptocurrency. Her brother, <b>Konstantin Ignatov</b>, was arrested in Los Angeles in 2019 and pleaded guilty to related charges. Another partner, <b>Sebastian Greenwood</b>, was detained in Thailand in 2018 and sent to the U.S. where he remains in prison awaiting trial. <b>Mark Scott</b>, a U.S. lawyer, was convicted in 2019 on charges relating to the washing of $400 million for the group.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Justin Kimbrough</b>, 25, of Texas was charged by the SEC on allegations related to a scheme run with <b>Terry Nikopoulos</b> and his company, <b>TKJ Investments Corp</b>. The scheme was supposedly a real estate wholesale business, and at least $3 million was obtained from at least 31 investors. Funds were also placed into <b>Preeminent Trade Group Inc</b>, a company specializing in selling medical equipment for resale in India. Kimbrough was criminally indicted last month. Authorities alleged that Kimbrough wired some investor funds his business, <b>Prosperity Consultants, LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jason “Lottery Lawyer” Kurland</b> was found guilty in connection with an $80 million scheme in which he misappropriated his clients’ lottery jackpots. Kurland steered his clients to invest in companies that he secretly owned and took kickbacks without their knowledge. Kurland stole $100 million from a $245 million Powerball jackpot winner and funds from a $150 million jackpot winner and others. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marco Perez Jr</b>. aka <b>Sully Perez</b>, 37, of Texas, was sentenced to 14 years in prison and ordered to pay more than $14.5 million in restitution in connection with the Ponzi scheme run through <b>Permian Basis Proppants, Inc</b>. Perez promised returns to investors from the purchase of frac sand at a discount and the resale to fracking operations in and around the Permian Basin. Perez used the funds for his personal expenses, paying for property, vacations, luxury vehicles, a helicopter, and a lavish wedding. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Gilbert J. Peter Jr</b>., 62, was arrested on allegations that he stole millions of dollars in connection with a clinic called <b>My Doc Urgent Care</b> and <b>Doctor Doctor</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Saffron</b>, 49, was charged with running an alleged cryptocurrency Ponzi scheme through <b>Circle Society</b>. Saffron allegedly misrepresented to investors that he generated profits by using a trading bot that could execute over 17,000 transactions per hour on various cryptocurrency exchanges. He also falsely represented that his trading bot would generate between 500% to 600% returns on the amount invested.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jon Seawright</b>, 50, pleaded guilty in connection with his role in the timber Ponzi scheme ran by <b>Arthur Lamar Adams</b> through <b>Madison Timber Properties LLC</b>. Seawright admitted that he and a co-conspirator participated in the scheme and represented to investors that they were in the business of loaning funds to buy timber rights from landowners and then sell those rights to lumber mills at a higher price. Seawright operated an investment company, <b>Alexander Seawright LLC</b>, with <b>Brent Alexander</b>. Adams was sentenced to 19½ years in prison in 2018.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeremy Spence</b>, 25, was sentenced to 42 months in prison in connection with the <b>Coin Signals</b> Ponzi scheme. Coin Signals defrauded more than 170 people in a cryptocurrency scheme involving more than $5 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Cornelius Johannes Steynberg</b>, and <b>Mirror Trading International Proprietary Limited</b>, were charged by the CFTC with running a fraudulent commodity pool worth more than $1.7 billion in bitcoin. Mirror Trading is a South African company that solicited bitcoin from thousands of people, including 23,000 Americans. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Le Anh Tuan</b>, 26, a Vietnamese national, was charged in connection with an alleged cryptocurrency-related fraud involving the Baller Ape NFT. Tuan was involved with the <b>Baller Ape Club</b>, a supposed NFT investment project. In a “rug pull,” the website was deleted after the first day and $2.6 million of investor funds went missing. A blockchain analysis revealed that the investor funds were laundered through “chain-hopping” where one type of coin is converted to another type and funds are moved across multiple cryptocurrency blockchains to obscure the trail of the funds.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Tyler Tysdal</b>, 51, was sentenced to 6 years in prison in connection with a $46 million Ponzi scheme. The scheme ran for a decade and defrauded about 77 investors. Tysdal pleaded guilty last year. Co-conspirator, <b>Grant Carter</b>, 51, also pleaded guilty and was sentenced to 4 years in prison. The scheme was run through <b>Cobalt Sports Capital</b>, which purported to make short-terms, high-interest loans to startup companies, and a second scheme promised returns of 10 to 15 times their principal investment from investments in a wine distributor.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Chris Marco</b>, 63, was charged in connection with an alleged Ponzi scheme that defrauded over $36 million from at least 9 investors between 2013 and 2018, and $250 million for over 300 investors over a 20-year period. The scheme was run through <b>AMS Holdings (WA) Pty Ltd</b>. Marco disputes the charges. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua James Tenhove</b>, 49, was sentenced to 4 years in prison and ordered to pay $3.3 million in restitution. Tenhove previously pleaded guilty to a Ponzi scheme that took in $10 million from investors to buy light towers so they could be rented to customers.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities attached properties held in the name of <b>Dreamz Infra India Ltd</b>, <b>TGS Constructions Pvt Ltd</b>, <b>Disha Choudhary</b>, and <b>Mandeep Kaur</b>, in connection with an alleged Ponzi scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Malta</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>JuicyFields</b> is accused of running a Ponzi scheme which may be the largest such scam in the cannabis industry. The cannabis investment platform promised returns between 6% and 14% from investments in cannabis plants. The scam operated worldwide and allegedly involved hundreds of millions of dollars. JuicyFields stopped operations in July, froze cash withdrawals, removed profiles from social media, and disappeared.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>South Korea</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Officials raided at least 7 cryptocurrency exchanges as part of an investigation of <b>Terraform Labs</b>, including <b>Upbit</b>, <b>Bithumb</b>, and <b>Coinone</b>. Terraform collapsed earlier this year.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bamise Samson Ajetunmobi</b> and <b>Elizabeth Anuoluwapo Ajetunmobi</b> have been ordered to pay N18.8 billion to 27 defrauded investors in connection with a scheme that promised 10% monthly returns. The scheme was run through <b>Imagine Global Holding Company Ltd</b> and <b>Imagine Global Solutions Limited</b> and supposedly offered microloans to small and medium-sized companies and low-income workers in Africa.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Amanda Chisom</b> was arrested in connection with an alleged Ponzi scheme run by <b>Marksman Chinedu Ijeoma</b> aka <b>Chinmark</b>. The scheme involved N50 billion.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities revoked the corporate registration of <b>Wellcons Unlimited Systems Inc</b>. in connection with its “double-your-money” program called <b>Binary System</b>. Investors were told they could double their money in 6 months. </span></p><div><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-45006711368663425022022-07-24T22:45:00.002-07:002022-10-12T08:13:59.700-07:00Cryptocurrency in Bankruptcy: Breaking It Into Small Bytes<p style="text-align: justify;"><span style="font-family: verdana;"><b>By Kathy Bazoian Phelps</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">July 24, 2022</span></p><p style="text-align: justify;"><span style="font-family: verdana;">This article covers the Who, What, Where and Hows of issues arising when cryptocurrency lands in a bankruptcy proceeding, with a particular focus on cryptocurrency exchanges and investment funds. Those who think they own the cryptocurrency reflected on their monthly statements may want to keep reading to learn how to assess the risks associated with those exchanges and investments.<span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>What is Cryptocurrency?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Is cryptocurrency a commodity, a security, currency, or something else? </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Cryptocurrency is a medium of exchange that exists in the form of a virtual currency or digital asset. It can be used to purchase goods or services, as collateral in a lending transaction, or as an investment, either by itself or pooled in an investment fund with others.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Unlike sovereign-issued currencies like the dollar or euro, cryptocurrencies are not backed by any government, fiat currency, or commodity. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Cryptocurrency uses a digital signature mechanism to generate a “public key” and a “private key” that are mathematically related. The public key identifies the user and is like an account username. The private key is a string of characters that serves as a password and identifies the owner of the wallet, allowing the user to access and transfer the digital assets. Digital wallets store cryptocurrencies, and owners can exchange cryptocurrencies over the internet directly from peer to peer. “Miners” are computer operators who use software to validate transactions and are awarded cryptocurrency as they solve computational puzzles to add new blocks to the blockchain. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Cryptocurrency exchanges facilitate the exchange of cryptocurrencies for other currencies or cryptocurrencies.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">In characterizing cryptocurrency, the line between currency and commodity remains blurred, but it has become clear that the characterization of cryptocurrency as a “security” for regulatory purposes is limited to investment contracts and does not extend to outright ownership of cryptocurrency. The SEC monitors the formation of investment funds that solicit investors, through Initial Coin Offerings (ICOs) or otherwise, concluding that these are investment contract securities transactions subject to SEC regulations if they satisfy the “<i>Howey</i> Test.” <i>SEC v. W.J. Howey Co</i>., 328 U.S. 293 (1946). The following criteria are used to establish whether investment contracts are securities transactions subject to securities regulation: (1) an investment of money; (2) in a common enterprise; and (3) with an expectation of profits mostly from the efforts of others. Therefore, while cryptocurrency itself may not be a security, an investment in a fund handling cryptocurrency or an ICO certainly may be subject to securities regulations if the arrangement is deemed to be an investment contract that meets these criteria. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The debate over whether cryptocurrency is a commodity, a security or a currency is ongoing. However, in a bankruptcy case, the consequences of how to characterize cryptocurrency is highly significant, as explained below.</span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>Who Filed Bankruptcy?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">As an asset, cryptocurrency can land in a bankruptcy proceeding in a few different ways, depending on who filed the bankruptcy: </span></p><p style="text-align: justify;"></p><ul style="text-align: left;"><li><span style="font-family: verdana;">An Individual: An individual who files bankruptcy may own cryptocurrency, holding it in a private “cold” wallet to which they hold the private digital key, in a “hot” wallet connected to the internet, in an exchange, or otherwise. When an individual files bankruptcy, all property of the individual becomes property of the bankruptcy estate, wherever located, including cryptocurrency.</span></li></ul><div><span style="font-family: verdana;"><br /></span></div><ul style="text-align: left;"><li><span style="font-family: verdana;">An Exchange: An Exchange is a platform that offers customers the ability to buy, sell, and trade cryptocurrencies. Customers can have their assets held in custodial wallets. There is no SIPC or FDIC insurance for the assets held in a cryptocurrency Exchange. If an Exchange ends up in bankruptcy, the legal ownership of the digital assets is a complex question that is just now making its way to the courts. Tough issues arise in a bankruptcy involving competing claims from customers wanting the Exchange to return their digital assets and the Exchange claiming that the assets are property of the bankruptcy estate.</span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><br /></span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">An Investment Fund: An Investment Fund may aggregate investor dollars to purchase cryptocurrency on behalf of the investors in the Fund. Similar to issues arising in a bankruptcy of an Exchange, a Fund bankruptcy may tee up battles between the investors seeking the return of the in-kind digital assets that they thought they owned and the company seeking to liquidate the assets and pay pro rata claims to its unsecured creditors, including its investors. </span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Depending on who ends up in bankruptcy, the issues can play out very differently. In this cast of characters, all are likely to be eligible to file for bankruptcy under the Bankruptcy Code; that is, if they are not otherwise excluded from eligibility by section 109 of the Bankruptcy Code (11 U.S.C. § 109). Banks, insurance companies, and railroads, among a few others, are not eligible for bankruptcy relief. The question of whether a company filing bankruptcy qualifies as a bank might be an issue in circumstances where, for example, a financial institution also holds digital currencies. Or, if an Exchange has both a cryptocurrency division as well as a banking division, the lines may become blurred regarding eligibility for bankruptcy.</span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>Where is the Cryptocurrency Located?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span style="white-space: pre;"> </span>Cold Wallet: This is a personal wallet where the owner holds a private digital key to control the digital wallet. The holder of that very important key has the exclusive ability to make withdrawals or payments from the wallet. The cold wallet stores digital assets offline using tools such as USB devices or paper wallets with QR codes. If the key is lost, however, the digital assets are lost. Some estimates are that 20% of Bitcoin is locked in cold wallets where the key is lost and the assets are inaccessible.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span style="white-space: pre;"> </span>Hot Wallet: A hot wallet is connected to the internet and uses devices or systems such as desktop wallets, mobile wallets, and web-based wallets. A hot wallet can be connected to a trading platform, such as an Exchange. Hot wallet keys are stored on the internet. Hot wallets can be more accessible and easier to use, but they are less secure and more vulnerable to hackers. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span style="white-space: pre;"> </span>An Exchange: An Exchange can be more convenient for customers who do not want the hassle or the responsibility for maintaining a personal cold wallet. But there is a risk here. If custodially held cryptocurrencies in an Exchange land in bankruptcy, an issue may arise as to whether the Exchange or the customer legally owns the cryptocurrency. Custodial cryptocurrencies may be treated differently than a user’s own digital keys and noncustodial accounts in a bankruptcy proceeding. Whether or not digital assets that are held by an Exchange become property of the bankruptcy estate subject to satisfying creditor claims is likely going to be fact dependent and potentially a hotly contested issue. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span style="white-space: pre;"> </span>An Investment Fund: If an investor hands cash or cryptocurrency over to an Investment Fund in the hope that they will turn a profit, they are pooling their assets with other investors in the fund. What that Fund then does with that cash and assets is out of the investors’ control. Unfortunately, sometimes the cash is never even converted into digital assets. Or perhaps a wallet is held by the Fund and then the Fund loses control over that wallet – due possibly to insider theft, hacking, or some other dissipation of the assets. The Fund could also choose to place the money and digital assets with an Exchange in the Fund’s name, making the assets one step further removed from the investor. </span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>Who Owns the Cryptocurrency in Bankruptcy?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">If an Individual Files: If the individual owned it before bankruptcy, whether located in a cold wallet, hot wallet, or at an Exchange, that asset becomes property of the bankruptcy estate pursuant to section 541 of the Bankruptcy Code.<span style="white-space: pre;"> </span></span></p><p style="text-align: justify;"><span style="font-family: verdana;">If an Exchange Files: Unlike a brokerage statement reflecting actual ownership of shares of a company, a statement from an Exchange that reflects a certain number of a type of cryptocurrency, i.e., Bitcoin or Ethereum, may state the value at a given time, but may or may not reflect an actual ownership in a particular thing. Cryptocurrency may be deemed fungible, like dollars, creating some ambiguity as to who owns what. The fine print in the User Agreement with an Exchange might offer some insight in this regard as to who the owner is. If assets are deemed fungible and are commingled, however, a legal battle may ensue over ownership. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Once in bankruptcy, whether a custodial account at an Exchange remains property of the customer or becomes the Exchange’s property may depend on the intent of the parties, the fine print in the agreement with the Exchange, whether customer assets are commingled or can be separately traced, and who has control of those assets.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">One of the more popular exchanges generally considered to provide customers comfort, Coinbase Global Inc. (“Coinbase”), recently reported that:</span></p><p style="text-align: justify;"><span style="font-family: verdana;">"[B]ecause custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto<span> a</span>ssets we hold in custody on behalf of our customers could be subject to<span> </span>bankruptcy proceedings and such customers could be treated as our general unsecured creditors." </span></p><p style="text-align: justify;"><span style="font-family: verdana;">That statement was buried in Coinbase’s quarterly Form 10-Q (May 10, 2022), which also discloses that Coinbase has $256 billion in custodial fiat currencies and cryptocurrencies that it holds on behalf of its customers. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">However, the fine print under Legal on the Coinbase website for the Coinbase User Agreement (<a href="https://www.coinbase.com/legal/user_agreement/united_states">https://www.coinbase.com/legal/user_agreement/united_states</a> last checked July 24, 2022) tells a different and somewhat confusing story:</span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Assets are fungible: Under section 2.5 of the User Agreement, users must agree that Coinbase may hold assets on shared blockchain addresses and that digital assets that are held across multiple blockchain addresses may be treated as fungible. Fungible means that a particular “thing” is not a distinct identifiable asset.</span></li><li><span style="font-family: verdana;">Custodial and ownership arrangements: Section 2.7 states that digital assets are held by Coinbase for the customer’s benefit, and section 2.7.1 states that title remains with the customer and not Coinbase. “All interests in Digital Assets we hold for Digital Asset Wallets are held for customers, are not property of Coinbase, and are not subject to claims of Coinbase’s creditors.” If true, then why the recent disclosure that “customers could be treated as our general unsecured creditors”?</span></li><li><span style="font-family: verdana;">Commingled accounts: Section 2.7.4 states that “In order to more securely and effectively custody assets, Coinbase may use shared blockchain addresses, controlled by Coinbase, to hold Supported Digital Assets for Digital Asset Wallets on behalf of customers and/or held on behalf of Coinbase. Although we maintain separate ledgers for users’ Coinbase Accounts and Coinbase accounts held by Coinbase for its own benefit, Coinbase shall have no obligation to create a segregated blockchain address for your Supported Digital Assets.” </span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">So, can a customer make a claim to particular digital assets, and are those assets actually traceable to the customer?</span></p><p style="text-align: justify;"><span style="font-family: verdana;">The Coinbase User Agreement language definitely creates confusion about what would happen in a bankruptcy. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The recent bankruptcy filing of Celsius Network LLC further highlights the complexity of this issue. Celsius disclosed in its bankruptcy case (<a href="https://cases.stretto.com/celsius/">https://cases.stretto.com/celsius/</a>) that it has several different programs under the Celsius umbrella, each of which may ultimately be treated distinctly in bankruptcy. The first day presentation by Celsius as filed with the bankruptcy court provides the following explanation of its programs:</span></p><p style="text-align: justify;"><span style="font-family: verdana;">"Earn Program: Retail customers transferred coins to Celsius and earned rewards</span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Under the Terms of Use (“TOUs”), title to coins is transferred to Celsius, and Celsius is entitled to use, sell, pledge, and rehypothecate those coins. </span></li><li><span style="font-family: verdana;">Since April 15, 2022, the Earn product has been limited to U.S. accredited investors and foreign customers. </span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Borrow Program: Celsius leant USD or coins to borrowers who post coins as collateral </span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Borrowers were able to choose from different loan products based upon LTV ratios of posted collateral, with applicable interest rates being higher for higher LTV loans. </span></li><li><span style="font-family: verdana;">Title to coins is transferred to Celsius and Celsius is entitled to use, sell, pledge, and rehypothecate those coins. </span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Custody Program: Custodial services for customer, incl. U.S. non-accredited investors </span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Began in April 2022 </span></li><li><span style="font-family: verdana;">Title remains with customer and Celsius cannot use coins without instructions from the customer.</span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Institutional Lending and Borrowing Program: Bespoke lending and borrowing with institutional clients, such as hedge funds and market-makers </span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Depending on the creditworthiness of the counterparty, loans to institutional investors may be secured, partially secured, or unsecured </span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Mining: Celsius, through its Debtor subsidiary Celsius Mining LLC, operates one of the larges Bitcoin mining enterprises in the U.S. </span></p><p style="text-align: justify;"></p><ul><li><span style="font-family: verdana;">Celsius operates over 43,000 rigs and plans to operate 112,000 rigs by Q2 2023."</span></li></ul><p></p><p style="text-align: justify;"><span style="font-family: verdana;">Quite early in the Celsius bankruptcy case, customers of Celsius are already filing letters with the court, imploring the court to return the digital assets to them in kind. The Celsius bankruptcy case may establish some important precedent as to how it will all shake out in a bankruptcy. On the one hand, if title really does belong to the customer and the Exchange is holding those assets in trust and for the benefit of the customers, the customer should get the property back in kind. On the other hand, if assets are fungible and commingled, can the customers really trace what they claim is theirs? </span></p><p style="text-align: justify;"><span style="font-family: verdana;">If there is no fraud or mismanagement involved in an Exchange bankruptcy case, the Exchange should in theory have enough cryptocurrency to return to customers, even if the value of the assets has dropped due to volatility in the market. If fraud or mismanagement is involved, however, and insufficient assets remain, returning digital assets in kind to customers will present challenges and create priority battles. This would potentially cause courts to invoke equitable principles, such as pro rata distribution methodologies, to divide a pie that is too small to feed everyone.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">If and when a bankruptcy is filed, an automatic stay will immediately kick into place prohibiting the withdrawal of assets from the bankrupt Exchange, at least until these ownership issues are worked out.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">If the Investment Fund files: </span><span style="font-family: verdana;">Investment programs that solicit investor funds to turn a profit are generally required to follow applicable regulations, registering with the SEC or CFTC and making certain disclosures unless otherwise exempt. Unfortunately, this is an area in which it is too easy for fraudsters to take advantage of unsuspecting investors, and for investors to fall short of solid due diligence. Similar battles may ensue among investors in a bankruptcy proceeding all seeking to get “their” digital assets back, while the Fund may hold insufficient assets to satisfy all investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>How to get cryptocurrency out of a bankruptcy?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">The automatic stay that is imposed under section 362 of the Bankruptcy Code upon the filing of a bankruptcy petition will stop all actions to take control of all assets of the bankruptcy estate, including all assets in the possession of the bankrupt debtor. So, at least initially, customers will not be able to withdraw their cryptocurrencies after a bankruptcy filing of an Exchange or Fund. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">There are a few ways, however, that a customer or an investor might be successful in extracting something of value from such a bankruptcy. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span style="white-space: pre;"> </span><b>Tracing</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">First, if the customer can establish a unique, traceable interest to a particular digital asset, then it may be possible to assert a constructive trust position over that identifiable asset. In such an instance, the customer would have a claim in kind, for the digital asset which can be traced to a wallet with a unique identity for that customer. If assets are held in an identifiable cold wallet in a noncustodial account at the Exchange, then tracing might be possible.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Given the fungible nature of digital assets held by an Exchange or Fund, however, such tracing might prove problematic for custodial accounts under the control of the Exchange. The customers will undoubtedly seek to retrieve their digital assets in kind. The bankrupt Exchange may seek to affix a value to the claim amount of that customer and allow a claim in the bankruptcy case to be satisfied in cash. So, if the assets are in a custodial account, it remains to be seen how this will play out in bankruptcy. The fine print could ultimately be critical in hashing out these issues. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><span> </span><span> </span><b>Unsecured Creditor</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">If no tracing can be established and the customer is merely a general unsecured creditor of the Fund or Exchange, then, to the extent assets are available, distributions will ultimately be made to creditors, likely in the form of cash, pursuant to the priority scheme set forth in the Bankruptcy Code. Non-monetary claims for digital assets may be converted into monetary claims based on the valuation at the time of the commencement of the bankruptcy case. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">An Exchange or Investment Fund wishing to stay in business through bankruptcy will likely have filed a Chapter 11 reorganization case. In such a case, the business will want to retain its customers. So it would presumably retain the assets that its customers claim and try to propose a plan for distributing or retaining the assets that the customers would support. In a Chapter 11 reorganization proceeding, the creditors may have an opportunity to vote on a plan of reorganization. But they will have to wait for the debtor to propose and confirm a plan before they either retain their digital assets or get paid whatever percentage of their claim that is ultimately disbursed under the plan. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">In the meantime, the unpredictability and volatility in the price of cryptocurrency may create significant issues in the plan confirmation process, making it challenging to establish the required feasibility of a plan in the first instance. Even more frustrating for general unsecured creditors is that they will get paid only after administrative, priority and secured creditors are paid, so payment can be slow and disappointing in many cases. A Chapter 11 plan could also theoretically propose the return of digital assets in kind if sufficient assets remain, moving the benefits or risks of past and future fluctuation in price back to the customer.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">If the bankruptcy case is instead a Chapter 7 liquidation, or if the company has decided to liquidate in Chapter 11, the challenges for the creditor will likely be greater and the distribution quite possibly smaller. Without any incentive to retain customers, a Chapter 7 trustee or a company in liquidation mode may have little reason to try to honor the claims of one particular creditor over another and would instead seek to sell everything and pay a pro rata share out to creditors in the order of priority. Depending on the scope of the sale, a forced liquidation of crypto assets can drive down the value of those assets for other investors in that type of asset, potentially on a global scale. However, more importantly for the creditors in the particular bankruptcy case, the recovery for the creditor will be limited to a pro rata share of net sales proceeds, with no hope of future appreciation on the assets that would come of an in kind return of digital assets. A benefit of an in-kind distribution is that it would move the potential future upside or downside of the asset back to the customer pursuant to the customer’s expectations when the asset was originally acquired. </span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><b>What are the risks to customers in bankruptcy?</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">As discussed above, customers and investors are subject to the risk of nonpayment, delayed payment, or a small distribution. But there is more. They may also be required to give back any assets that they received within the 90 days prior to the bankruptcy filing under the bankruptcy preference laws in section 547 of the Bankruptcy Code. A bankruptcy trustee or the debtor in bankruptcy may seek to avoid and recover any transfers made to or for the benefit of a creditor within 90 days of the filing of the bankruptcy petition for antecedent debt while the debtor was insolvent. An investor in a Fund or a customer that has digital assets at an Exchange may be deemed a creditor of that Exchange and will want to explore possible defenses if such a claim is made.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Similar to the risks of avoidance from a preference action, customers could also be required to return digital assets transferred to them during the two years before bankruptcy if those transfers are deemed avoidable under the fraudulent transfer provision in section 548 of the Bankruptcy Code. State fraudulent transfer laws may also apply and those laws may have lookback periods even longer than two years. While the word “fraudulent” feels accusatory as to the recipient customer’s intent, it is actually the intent of the Exchange or Fund - the transferor – to hinder, delay or defraud other creditors that is the triggering intent under section 548(a)(1)(A) of the Bankruptcy Code. Alternatively, a transfer may be deemed fraudulent as a constructive fraudulent transfer under section 548(a)(1)(B) where that debtor received less than reasonably equivalent value in exchange for the transfer at a time when the debtor was insolvent. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Further complicating the analysis, there are defenses to these types of actions to recover transfers if the transfers involve securities, commodities or a repurchase agreement. This begs the question, of course, of what is cryptocurrency? </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The value of the cryptocurrency that was transferred becomes an important part of the analysis for these types of avoidance claims, leading to yet more issues to resolve in a bankruptcy case. Section 550 of the Bankruptcy Code, states that “the trustee may recover, for the benefit of the estate, the property transferred, or, if the court so orders, the value of such property.” Whether cryptocurrency is a currency or commodity will therefore impact what can be recovered in an avoidance action. If a currency, the value at the time of the transfer can be recovered. If a commodity and property is transferred, then the value of the property at the transfer date or time of recovery, whichever is greater, can be recovered, allowing for the capture of any appreciation. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">At least one bankruptcy court was confronted with this issue but unfortunately declined to offer any guidance. <i>Kasolas v. Lowe</i> (<i>In re Hashfast Technologies LLC</i>), Adv. No. 15-3011 (Bankr. N.D. Cal.). In that case, the liquidating trustee sought to recover 3,000 bitcoin as a fraudulent transfer, arguing that he was entitled to the Bitcoin at its present value of $1 million because the cryptocurrency was a commodity and not currency. The recipient of the transfer argued that the Bitcoin was currency and were only worth the $363,000 that was the value at the time of the transfer. The bankruptcy court did not determine whether the Bitcoin was currency or commodities for purposes of the fraudulent transfer, and because the case was ultimately settled, the question of whether to value the Bitcoin as of the date of transfer or a later time was never decided. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Other courts have reached differing conclusions. For example, one court determined that investments in Bitcoin constituted an investment of money. <i>SEC v. Shavers</i>, Case No. 13-cv-416, Docket No. 23 (E.D. Tex. Aug. 6, 2013). Another court in a case brought by the Commodity Futures Trading Commission found that cryptocurrencies are a type of commodity. <i>In re Coinflip Inc.</i>, CFTC No. 15-29 (Sept. 17, 2015) (“Section 1a(9) of the act defines ‘commodity’ to include, among other things, ‘all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in.’ ... Bitcoin and other virtual currencies are encompassed in the definition and properly defined as commodities.”).</span></p><p style="text-align: justify;"><span style="font-family: verdana; font-size: large;"><span style="white-space: pre;"> </span><b>Takeaways</b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span> Read the fine print of any user agreement with an Exchange or subscription documents for an Investment Fund.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span> Even if the fine print says you own the cryptocurrency, be aware of the risk that a bankruptcy court may find otherwise.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span>Consider placing cryptocurrency in a cold wallet to stay offline and in complete custody and control of the owner – but don’t lose the private key!</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span> </span><span>B</span>e suspicious of promises of regular or above market returns on cryptocurrency investments.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">▪<span style="white-space: pre;"> </span> If it sounds too good to be true, it probably is.</span></p><div style="text-align: justify;"><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-33469533852465431162022-06-30T17:53:00.001-07:002022-10-12T08:14:12.215-07:00June 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for June 2022. The reported stories reflect at least 6 new Ponzi schemes worldwide, one guilty plea, more than 50 years of prison sentences, and an average age of approximately 53 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. <span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert C. Bridgforth</b> was the subject of a final cease and desist order issued by the Missouri Secretary of State’s Securities Division in connection with a scheme run through <b>Liberty Gold and Silver</b>. Bridgforth is to pay civil penalties of $3.3 million, restitution, interest, and costs and is barred from working in the securities sector.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael David Carroll</b>, 46, of California, was sentenced to more than 8 years in prison and ordered to pay more than $1.3 million in restitution in connection with a $1.4 million Ponzi scheme. Carroll was already serving a 70-month sentence for a fraud conviction but continued to lie to investors in soliciting new investments. He previously pleaded guilty and admitted misrepresenting investments based on short term bridge loans that promised returns of 40% to 50%. He ran the schemes through <b>MCC Holdings</b>, <b>SLJ Holdings</b>, and <b>STR America Holdings</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Patrick Churchville</b> of Rhode Island, and his investment advisory firm, <b>ClearPath Wealth Management LLC</b>, were the subject of a final judgment and permanent injunction sought by the SEC. The SEC had alleged that their fraudulent conduct resulted in at least $27 million in losses to more than 100 investors and that they had stolen approximately $2.5 million for personal use. Churchville and previously pleaded guilty and was sentenced to 7 years in prison.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joey Stanton Dodson</b>, 58, of California, pleaded guilty to charges related to a $15 million Ponzi scheme run though <b>Citadel Energy Partners</b>. Dodson raised money from 50 investors in a scheme run through three limited partnerships, <b>Fort Berthold Water Partners L.P</b>., <b>Citadel Watford City Disposal Partners L.P.</b>, and <b>H20 Partners L.P</b>. The scheme supposedly involved services for oil and gas companies in North Dakota. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alan Hansen</b>, 51, was sentenced to 8 years in prison and ordered to pay $619 million in restitution in connection with the <b>DC Solar</b> Ponzi scheme. Hansen is a former executive of the company that marketed solar generator units. He had previously worked for a telecom company that did business with DC Solar and accepted $1 million from co-conspirators in agreeing to fraudulently sign a false leasing contract for the generators. <b>Jeff Carpoff</b>, who ran the scheme, was previously sentenced to 30 years in prison, <b>Joseph Bayliss</b> was sentenced to 3 years, and CFO <b>Robert Karmann</b> was sentenced to 6 years. Carpoff’s wife, <b>Paulette Carpoff</b>, 51, previously pleaded guilty and was just sentenced to 11 years and 3 months. <b>Ronald J. Roach</b>, 55, and <b>Ryan Guidry</b>, 45, are scheduled to be sentenced later this year. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bernard Ross Hansen</b>, 61, and <b>Diane Renee Erdmann</b>, 49, of Washington, were sentenced to 11 years and 5 years, respectively, after being caught while they were on the run avoiding sentencing. The pair were convicted of running a Ponzi scheme through <b>Northwest Territorial Mint</b>. The scheme allegedly defrauded 3,000 investors out of more than $30 million in connection with a gold and silver bullion scheme. Hansen and Erdmann were arrested after a hotel employee recognized them.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Mooney</b>, 52, <b>Britt Wright</b>, 49, and <b>Penny Flippen</b>, 59, were charged by the SEC in connection with an alleged $110 million Ponzi scheme. The three former investment advisor representatives assisted in the scheme run through <b>Southport Capital</b>, aka <b>Livingston Group Asset Management Company</b> that were owned and managed by <b>John J. Woods</b>. Woods also controlled an investment fund called <b>Horizon Private Equity III LLC</b> and was charged in 2021 with operating Horizon as a Ponzi scheme. Money, Wright and Flippen recommended that at least $62 million of their clients’ fund be invested in Horizon, promising returns of 6% to 8% and a guaranteed return of their principal. Approximately 400 investors were owed more than $110 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Joshua Nicholas</b>, 28, <b>Emerson Pires</b>, 33, and <b>Flavio Goncalves</b>, 33, were charged by the SEC with running a scheme through <b>Empires Consulting</b> and <b>EmpiresX</b> in Florida. The companies supposedly were trading businesses that used finance automation technology. The scheme supposedly conducted proprietary trading through an automated “Ex Bot” that generated 1% daily profits.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Blake Robert Templeton</b> and his companies <b>Boron Capital, LLC</b>, <b>Boron Holdings 2017, LLC</b>, and <b>United BNB Fund 2018, LLC</b> were sued by the SEC on allegations that they were operating a Ponzi scheme. They raised $18.7 million for a supposed house flipping business, but used $14 million to buy and develop the Dallas Oasis, a wedding venue in Texas. Templeton is accused of misrepresenting that the investments would be protected by collateral when in fact they were not. Interest was paid to investors using funds from new investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Remi Capital fka C2 Capital</b> and its founder, <b>Peter Terrill</b>, are suspected of running a Ponzi scheme owing $124 million, including $61 million owed to 312 investors. Terrill was ousted from Remi Capital in 2021 but received a substantial exit package including $600,000 payout and Mercedes-Benz Roadster. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Charles Debono</b>, 63, was sentenced to 7 years in prison in connection with a Ponzi scheme that defrauded more than 500 investors out of more than $29 million. He promised investors returns a 15-cent return on every transaction from a bogus debt machine business known as <b>Debt Direct</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Arnold Breitkreutz</b>, 74, was found guilty in connection with a scheme run through <b>Base Finance</b> that promised returns from supposed secured mortgages on real estate in Alberta. In reality, investor funds were loaned to an oil and gas promoter in Texas. Investment losses totaled more than $100 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert Newland</b>, 43, is facing extradition to the US from the United Kingdom after being accused of assisting an alleged £68m Ponzi-like scheme. Newland allegedly supplied false documents to assist <b>Inigo Philbrick</b>, 34, who has been dubbed the “Mini Madoff of the art world, in running the scheme. Philbrick was sentenced to 7 years in prison in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ovaioza Yunusa</b> was charged by authorities on accusations that she was running a Ponzi scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities declared <b>Pastor (Dr) Miebi Bribena</b> aka <b>Onyimiebi Bribena</b>, and his wife, <b>Beatrice Bribena</b>, wanted for running an alleged Ponzi scheme that took in N2 billion.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">The SEC revoked the registration of <b>Intime Import and Export Corp</b>. on allegations that it was running a Ponzi scheme. The scheme promised returns of 3% to 5% per day.</span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-84690226317260379932022-05-31T20:25:00.001-07:002022-10-12T08:14:25.209-07:00May 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for May 2022. The reported stories reflect at least 12 new Ponzi schemes worldwide, 3 convictions, 2 guilty pleas, more than 64 years of prison sentences, and an average age of approximately 54 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. <span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eddy Alexandre</b>, 50, of New York, and <b>EminiFX, Inc</b>. were sued by the SEC and were the subject of an asset freeze in connection with an alleged crypto and foreign exchange trading scheme. The scheme involved at least $59 million, and investors were promised 5% to 9.99% weekly returns. Alexandre was also arrested in connection with the alleged scheme, and the FBI complaint alleged that the weekly earnings promises were false.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeremy Arrington</b>, 44, of Wisconsin, was convicted in connection with a $2.4 million investment scheme that defrauded 20 victims. The scheme was run through <b>Wisconsin Home Buyers Network</b>, which promised returns to investors ranging from 12% to 36% from real estate investments. <b>Joe Nemeth</b> intends to plead guilty in connection with the scheme. They used investor funds to pay off their debt and delinquent taxes.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Luiz Capuci Jr.</b>, 44, of Florida, was charged in connection with an alleged scheme run through <b>Mining Capital Coin</b>. Investors were promised returns from crypto mining but instead their funds ended up on wallets that Capuci owned. Capuci also promised returns from “Trading Bots” which were to trade at a high volume for significant returns, but instead the funds were diverted to Capuci and his co-conspirators. Capuci also touted his own cryptocurrency, <b>Capital Coin</b>. Approximately $62 million was paid into the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Wynn Charlebois</b>, of North Carolina, and his company, <b>WC Private LLC</b>, were accused by the SEC of operating a $7.1 million that allegedly defrauded 75 investors. Charlebois offered investors bogus investment opportunities, including investments in fake option contracts. Charlebois represented that he supposedly had provided consulting services for companies that had compensated him with stock options.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Alexandra H. Cock</b> and her company <b>Wealth Plus</b> were barred from the securities industry after the SEC charged her in connection with the Ponzi scheme run through <b>Professional Financial Investors</b> and <b>Professional Investors Security Fund</b>. Cock raised more than $2.5 million for the $26 million real estate-based Ponzi scheme. Cock had been promised a referral fee from <b>Kenneth Casey</b>, now deceased, who ran the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael J. DaCorta</b>, 57, of Florida, was found guilty of running the $80 million Ponzi scheme through <b>Oasis International Group</b>. The scheme defrauded 700 victims and promised huge returns from foreign currency exchange trades.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Bernard Ross Hansen</b>, 61, and <b>Diane Renee Erdmann</b>, 49, of Washington, failed to show up at their sentencing hearing and were on the run after being charged with running a Ponzi scheme through <b>Northwest Territorial Mint</b>. The scheme allegedly defrauded 3,000 investors out of more than $30 million in connection with a gold and silver bullion scheme. Hansen and Erdmann were later arrested after a hotel employee recognized them.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marlin Hershey</b>, 52, and <b>Dana Bradley</b>, 52, of North Carolina, were indicted on charges relating to an alleged scheme run by <b>Gary Dragul</b>. They allegedly induced dozens of investors to invest millions of dollars in their entities, <b>Performance Retire on Rentals, LLC</b>, <b>Distressed Lending Fund, LCC</b>, <b>Moteng Funding, LLC</b> and <b>Southeast Lot Acquisitions, LLC</b>, among others. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sam Ikkurty</b> aka <b>Sreenivas I Rao</b>, of Oregon, and <b>Ravishankar Avadhanam</b>, of Illinois, and <b>Jafia LLC</b> were charged by the CFTC in connection with an alleged $44 million Ponzi scheme that collected funds from 170 investors. The scheme involved cryptocurrency and digital assets and was run through <b>Ikkurty Capital</b> dba <b>Rose City Income Fund</b>, <b>Roe City Income Fund II LLP</b>, and <b>Seneca Ventures LLC</b>. Investors were promised profits as high as 62% annually on the website and through YouTube videos. The two defendants allegedly kept $18 million for themselves and transferred funds to other participants and to offshore entities under their control. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mark Marchi</b>, of New Jersey, was charged in connection with a $2.8 million Ponzi scheme run through <b>Precipio Capital</b>. Marchi claimed he was trading securities, and even though he had a loss on his trading activity, he paid out a total of $1.4 million to early investors. Marchi had previously pleaded guilty to other charges in 1998 and had been barred by the New York Stock Exchange. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Sven Eric Marshall</b>, 64, of Indiana, was sentenced to 10 years and one month in prison and ordered to pay back $1.94 million in restitution. Marshall, an attorney, pleaded guilty to mail fraud, securities fraud, and bank fraud in connection with a scheme that defraud elderly victims. He took money from the estates of his clients who hired him to administer their wills. He started the scheme in 1998 and promised returns of 4% to 8% per year. More than $730,000 was taken from 16 investors over a 14-year period. Marshall used his law practice to embezzle more than $1.3 million from clients in finalizing their estates and wills.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brian K. Martinsen</b>, <b>Michael A. Castillero</b>, <b>Francine A. Lanaia</b>, and <b>Eric D. Lachow</b>, of Florida, were sued by the SEC in connection with an alleged scheme run through <b>StraightPath Venture Partners LLC</b> and <b>StraightPath Management LLC</b>. The scheme involved the selling of pre-initial public offering shares that they did not own. At least $410 million was raised from more than 2,200 investors. The defendants paid themselves more than $75 million and sales agents about $48 million.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>George R. McKown</b>, 71, of Indiana, was sentenced to 7 years in prison in connection with a Ponzi-like scheme that defrauded more than two dozen investors. McKown and co-defendant, <b>Richard E. Gearhart</b>, solicited investments into their company, <b>Asset Preservation Specialists</b>, and promised returns of 6% to 8%. The scheme involved at least 25 victims and involved more than $5 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Andrew M. Middlebrooks</b>, of Michigan, and his company, <b>EIA All Weather Alpha Fund Partners I LLC</b>, was sued by the SEC on fraud charges that they were operating a Ponzi scheme causing losses of nearly $39 million. Middlebrooks operate a hedge fund, <b>EIA All Weather Alpha Fund I LP</b>, and allegedly misled investors by making false and misleading statements regarding the fund’s performance. The scheme defrauded over 100 investors and represented that the fund “had extremely successful trading performance, with cumulative returns upwards of 2,500% from the fund’s inception” when in reality the fund had lost approximately $27 million. The SEC also named <b>EIA All Weather Alpha Fund Partners II LLC</b>; and <b>Shop Style Shark LLC</b>, Middlebrook’s wife’s business.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Casper Mikkelsen</b> was permanently banned by the CFTC from trading commodity interests, and he was ordered to pay about $1.2 million in restitution. Mikkelson misappropriated his clients’ funds rather than using them from foreign exchange trading and made Ponzi-like payments to his clients as purported forex trading profits.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert Narvett</b>, 57, of Wisconsin, was sentenced to 15 years in prison in connection with a scheme that defrauded nearly 70 investors out of over $2 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Eshaq M. Nawabi</b> and his companies <b>Nawabi Enterprise</b> and <b>Hyperion Consulting Inc.</b> were charged by the CFTC in connection with an alleged Ponzi scheme involving off-exchange Forex trading. They solicited funds totaling at least $543,000 from at least 7 investors and promised returns of 8% to 25% per month. The investors could supposedly withdraw their funds at any time.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>James Nix</b>, 73, of Texas, was found guilty in connection with a Ponzi scheme he ran with his son, <b>Bradley Nix</b>. Bradley Nix pleaded guilty and was sentenced to 54 months in prison. They operated an accounting firm out of a home and defrauded more than 40 victims out of at least $6 million. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Inigo Philbrick</b>, 34, was sentenced to 7 years in prison and ordered to pay more than $86.6 million in restitution in connection with a Ponzi-like scheme involving more than $86 million. The scheme was uncovered in 2019 and his partner, <b>Victoria Baker-Harber</b>, 33, was previously sentenced to 7 years. The scheme involved an art dealing fraud and Philbrick was dubbed the “Mini Madoff of the art world.” He misrepresented that he owned certain artworks and sometimes sold more than 100% ownership to multiple individuals and entities.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Ruless Pierre</b>, 52, of New York, was sentenced to 7 years in prison and ordered to pay $2.03 in restitution in connection with a Ponzi-like scheme that targeted the Haitian community and brought in more than $2 million. The scheme was run through <b>Ruless Pierre Consulting Group</b> and investors were promised 20% returns every 60 days. Pierre deposited the investors' money into his personal bank accounts or his company's bank accounts and then transferred the money to trading accounts, where he engaged in unprofitable day trading. Pierre had offered investors returns from silent partnership agreements in fast-food locations, among other things.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Richard Dow Rockwell</b>, 62, of California, and his company <b>Dow Rockwell, LLC</b> were charged by the SEC in connection with the PFI scheme run by <b>Ken Casey</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Brenda Smith</b>, 61, a Philadelphia investment manager, was sentenced to 109 months in prison and ordered to pay $47.2 million in restitution in connection with a $105 million Ponzi scheme run through <b>Broad Reach Capital LP</b>. Smith ran a pooled investment fund and claimed returns of more than 35%. In reality, the accounts lost about 50% of their value. Smith instead used the funds for a mineral mining operation and to pay her expenses, including $2 million for American Express credit card bills.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Jeremy Spence</b>, 25, was sentenced to 42 months in prison in connection with a cryptocurrency Ponzi scheme that defrauded 170 investors out of $5 million. Spence solicited the funds through <b>Coin Signals</b>, promising investors profits from crypto trading that was in reality unprofitable.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Australia</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Roger Munro</b>, 72, was sentenced to 4½ years in prison in connection with a $60 million scheme. Munro represented that the funds were sitting in a blind trust in the U.S. He has not been charged in connection with the missing $60 million, but pleaded guilty to a scheme involving three investors who had been promised returns of 30% to 50%.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Michael Strubel</b> was sentenced to 6 years and 7 months in prison for his failure to pay back £1.4m of illicit profits. Strubel was originally jailed in 2015 in connection with a Ponzi-style scheme in which he claimed he was supplying services to the London 2012 Olympic village and large hotels. He defrauded investors out of £75.5 million and spent the money on yachts, luxury cars and property. Strubel was ordered to return more than £2.1m to victims, but more than £1.4m is outstanding. <b>Jolan Saunders</b> and <b>Spencer Steinberg</b> have also been charged in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>India</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Pallavi Hota</b>, the director of <b>Purple Qualves Financial Services Private Limited</b>, was arrested on charges that he defrauded at least 43 investors. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>86fb Football</b> has been accused by investors of running a Ponzi scheme. Thousands of investors were promised returns of 3% and now claim that they have lost over N200 billion.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>New Zealand</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Quwiex Limited</b> is being investigated by authorities as running a fraudulent cryptocurrency investment scheme. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Papua New Guinea</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">A 46-year old Chinese national was arrested on charges relating to a scheme that defrauded nearly 24,000 victims out of 34 million euro. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities warned about a possible Ponzi scheme run through <b>Multi Fortune Stake</b>, which has been soliciting investments without registration. The scheme is run by <b>Ricky Galon</b>, who guarantees returns of 100% in 30 days.</span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities issued an order of revocation to <b>Wealth on Web Company</b> aka <b>WOW Company</b>, which was operating without a license. WOW Company had characteristics of a Ponzi scheme. WOW was supposedly engaged in the direct selling of goods to consumers and retail trading, and the promoters promised returns of 3% to 6% daily.</span></p><div><br /></div>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0tag:blogger.com,1999:blog-8208431599381941990.post-27374574137041324022022-04-30T19:09:00.001-07:002022-10-12T08:14:26.127-07:00April 2022 Ponzi Scheme Roundup<p style="text-align: justify;"><span style="font-family: verdana;"><b>Posted by Kathy Bazoian Phelps</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">Below is a summary of the activity reported for April 2022. The reported stories reflect at least 8 new Ponzi schemes worldwide, 3 guilty pleas, more than 39 years of prison sentences, and an average age of approximately 49 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. <span></span></span></p><a name='more'></a><p></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Matthew Beasley</b>, 49, was accused by the SEC of running an alleged $449,000 Ponzi scheme that operated in Nevada, Utah, and California that defrauded over 600 investors. Beasley confessed to running a Ponzi scheme after he was shot by an FBI agent who had come to his house to investigate and was shot at himself. Investors were told that their money would be used to make advance payments to plaintiffs who had settled tort claims and were willing to pay a premium to be paid on the settlements in advance. Investors were promised returns of 50% or more. Beasley admitted that he did not have relationships with settlement plaintiffs and that he used the investor funds to pay off gambling debts and for luxury items. <b>Jeffrey Judd</b>, the main promoter of the scheme, was also named in the SEC suit. The entities charged with fraud in this action are <b>J&J Consulting Services, Inc. (Nevada)</b>, <b>J&J Consulting Services Inc. (Alaska)</b>, <b>J and J Purchasing LLC</b>, <b>Beasley Law Group PC</b>, <b>PAJ Consulting Inc</b>, <b>BJ Holdings LLC</b>, <b>Stirling Consulting L.L.C</b>., <b>CJ Investments, LLC</b>, <b>Rocking Horse Properties LLC</b>, <b>Triple Threat Basketball, LLC</b>, <b>ACAC LLC</b>, <b>Anthony Michael Alberto, Jr</b>., and <b>Monty Crew LLC</b>. Other individuals charged with acting as unregistered brokers are <b>Humphries</b>, <b>Shane Jager</b>, <b>Jason Jongeward</b>, <b>Denny Seybert</b>, and <b>Roland Tanner</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Vania May Bell</b>, 57, pleaded guilty to running a Ponzi scheme with her father, <b>Hector May</b>, through <b>Executive Compensation Planners</b>. Hector May was sentenced to 13 years in prison and ordered to pay $8 million in restitution. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Joseph Bunevacz</b>, 53, <b>Mary Hayca Bunevacz</b>, of California, and <b>CaesarBrutus LLC</b>, <b>Brutuz California Ventures Corp</b>., and <b>CB Holding Group Corp</b>., were charged by the SEC with running a cannabidiol oil vape Ponzi scheme. The SEC alleges that the scheme raised over $35 million from at least 40 investors who were promised returns from the production and sale of cannabis products, including vape pens. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Shawn E. Good</b>, 55, of North Carolina, was charged by the SEC on allegations that he ran a $4.8 million Ponzi scheme defrauding clients in his position as a Morgan Stanley financial advisor. Good is no longer employed with the firm. Good allegedly had his clients transfer money to his personal bank account so he could make investments in real estate development projects and government bonds on their behalf and promised them returns of 6% to 10%. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Marlin Hershey</b>, 52, and <b>Dana Bradley</b>, 52, were charged on allegations that they were running a $4 million Ponzi scheme through Performance Holdings. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>David Hu</b>, 64, of New Jersey, was sentenced to 12 years in prison in connection with a Ponzi-like scheme run through <b>International Investment Group</b> that involved more than $120 million. Hu had previously pleaded guilty to the scheme that involved the selling of over-valued and fake loans and falsified documents to deceive auditors and investors. Hu ran the scheme with co-conspirator, <b>Martin Silver</b>, who also previously pleaded guilty. They operated three private funds known as the <b>IIG Trade Opportunities Fund N.V.</b>, the <b>IIG Global Trade Finance Fund, Ltd</b>., and the <b>IIG Structured Trade Finance Fund, Ltd</b>. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert A. Karmann</b>, 55, was sentenced to 6 years in prison and was ordered to pay $624 million in restitution for his role as the chief financial officer in the $1 billion Ponzi scheme run through <b>DC Solar</b>. DC Solar defrauded investors by promising returns from trailer-mounted solar generators. DC Solar’s owner, <b>Jeff Carpoff</b>, was sentenced last November to 30 years in prison. Carpoff’s wife, <b>Paulette Carpoff</b>, pleaded guilty and is scheduled to be sentenced next month. <b>Joseph W. Bayliss</b> was sentenced to 3 years in prison, and other defendants have pleaded guilty and are scheduled for sentencing: <b>Alan Hansen</b>, 50, <b>Ronald J. Roach</b>, 54, and <b>Ryan Guidry</b>, 44.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>John Law</b>, 43, of New York, was sentenced to 10 years in prison and ordered to pay $1.3 million in restitution. Law previously pleaded guilty to charges in connection with a $115 million Ponzi scheme run by <b>“King Perry” Santillo</b> and <b>Christopher Parris</b> through <b>Lucian Development</b> that resulted in more than $70 million in losses. Santillo and Law sold securities to the public through various businesses including <b>Advice and Life Group</b>, <b>Poconos Investments</b>, <b>First American Securities</b>, and <b>Financial Planners Group of America</b>. Santillo was sentenced to 17 years in prison and Parris was also convicted but has yet to be sentenced.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Scott Merke</b> and <b>Eric Alexander</b> of Florida have been sued by the SEC in connection with the $322 million fraudulent scheme run by <b>1 Global Capital LLC</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Casper Mikkelsen</b> has been permanently banned by the CFTC from trading commodity interest in connection with a foreign exchange fraudulent scheme that purportedly paid forex trading profits to clients. The CFTC has coordinated with foreign regulators in Denmark on this case.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Robert T. Nicholas</b>, 48, was indicted in connection with an alleged $150,000 Ponzi scheme. Nicholas defrauded his clients as an insurance agent. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Charles Ochi</b>, 27, of Texas, and <b>Danielle Liggins</b>, 32, or Arkansas, were arrested on allegations that they were running a Ponzi scheme using sham companies to transmit proceeds to Nigeria. They used <b>Global Prime</b> and <b>Liggins Starflexx Commercial</b> to receive money from investors.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Austin Delano Page</b>, 26, and <b>Brandon Alexander Teague</b>, 26, of North Carolina pleaded guilty in connection with a scheme run through <b>D&T Investment</b> that took in $4.2 million from over 300 people. They represented that they were running a hedge fund that invested in securities, but there was no hedge fund and they did not hold any securities. They guaranteed 100% of the initial investment and promised 70% profits from trading.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Richard Dow Rockwell</b>, of California, and <b>Dow Rockwell LLC</b> were charged by the SEC for undisclosed conflicts of interest related to a real estate Ponzi scheme run through <b>Professional Financial Investors, Inc</b>. Rockwell and his company raised approximately $8 million for the scheme and earned approximately $400,000 in referral fees, which they failed to disclose to their clients.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>William Stenger</b>, 73, was sentenced to 18 months in prison and was ordered to pay $250,000 in restitution for his role in the <b>Jay Peak</b> EB-5 Ponzi scheme. Stenger pleaded guilty last year to submitting false information to the government. He raised more than $80 million from over 160 foreign investors through the EB-5 visa program, but the project known as <b>AnC Bio VT </b>failed, and Stenger and Jay Peak’s owner, <b>Ariel Quiros</b>, were accused of running a Ponzi scheme. <b>Bill Kelly</b> was also charged in connection with the scheme.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Junzo Suzuki</b>, 73, and his son, <b>Paul Suzuki</b>, 43, were sentenced to 5 years in prison in connection with the Ponzi scheme run through <b>MRI International Inc</b>. out of Las Vegas. The two ran the scheme with <b>Edwin Fujinaga</b>, 75, who is serving a 50-year prison sentence. The scheme involved $1.5 billion and 10,000 investors, most of whom were Japanese. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Abner Alejandro Tinoco</b> and his company, <b>Kikit & Mess Investments, LLC</b>, were the subject of a consent order obtained by the CFTC. They had been charged by the CFTC and fraudulently solicited over $7.2 million from 322 clients. The clients had given their money to be managed in customized client portfolios for foreign exchange and crypto trading. Most of the money was instead used to pay Tinoco’s personal expenses such as chartering a private jet, renting a luxury mansion and cars, and buying real estate.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>INTERNATIONAL PONZI SCHEME NEWS</b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Brazil</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities are searching for the creators of <b>Alpha Consultoria</b>, <b>Sadraqui de Freitas</b> and <b>Nathan Assis de Oliveira</b>, who they believe defrauded more than 2,000 people on promises of 30% returns per month on investments in cryptocurrencies.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Canada</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Mark E. Cohen</b>, 42, was arrested in connection with an alleged $12 million pandemic-related Ponzi scheme. The scheme promised 13% from the supposed purchase and resale of used vehicles from rental companies.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>England</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Andrew Fuller</b> aka <b>James Wellesley</b>, 55, and <b>Stephen Burton</b>, 57, are accused of defrauding wine collectors in a £76 million ($99 million) Ponzi scheme. They offered investors large returns on loans that were supposedly collateralized by valuable bottles of fine wines. The scheme was run through <b>Bordeaux Cellars London</b> and Hong Kong-based <b>Bordeaux Cellars</b>.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Kenya</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities report that <b>Bitstream Circle</b> is targeting investors in a Ponzi scheme across seven countries. The cryptocurrency scheme has targeting 11,000 people and promises returns between 5% and 8% on daily investments.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Lagos</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>Chinyere Emeka-Atu</b> was accused of running a Ponzi scheme through her company, <b>Family Food Support Association</b>, that defrauded investors out of N600m. </span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Nigeria</u></b> </span></p><p style="text-align: justify;"><span style="font-family: verdana;">The mother of <b>Ovaioza Yunusa</b> was arrested in connection with an alleged fraudulent scheme run through <b>Ovaioza Farm Goods Storage Business</b>. The scheme promised investors 70% to 80% returns and supposedly involved the buying, selling, and storage of certain commodities.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Philippines</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b>ScentokoWorld Corp</b>. and <b>Brendahl Cruz Holdings</b> had their corporate registration revoked by the SEC due to illegal solicitations from the public. The companies are both affiliated with <b>Brendahl Cruz</b>, the president and CEO and were promising investors 400% returns within 30 days from the purchase of perfume and beauty product packages.</span></p><p style="text-align: justify;"><span style="font-family: verdana;"><b><u>Singapore</u></b></span></p><p style="text-align: justify;"><span style="font-family: verdana;">Authorities arrested a 29-year old man in connection with an alleged Ponzi-like scam run through <b>Moviitech</b>, a job platform. Job seekers received unsolicited messages on Telegram, Facebook, Instagram and YouTube, promoting a money-making opportunity through watching move trailers. People were promised payment from watching movie trailers and more money for recruiting more people. They were required to purchase a membership plan before they started earning commissions, but stopped receiving commissions and were unable to withdraw from their member accounts. </span></p>Kathy Bazoian Phelpshttp://www.blogger.com/profile/00340238476313463754noreply@blogger.com0