May 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for May 2026. There were at least 7 new Ponzi schemes revealed this month, 7 guilty pleas, and more than 100 years of prison sentences. 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.

BG Wealth Sharing Ltd was the subject of a warning by the Washington State Department of Financial Institutions that investors should use extreme caution before sending more funds to BG Wealth on concerns that it is running a cryptocurrency scam on a purported trading platform called DSJ Exchange PTY Ltd. The scheme promised high returns and operated through social media recruitment. Investors are being directed to a new platform called HQI Exchange to invest more money. The scheme operates in New Zealand, Tonga, and Australia as well as in the U.S. 

Joel Castellanos, of Florida, settled charges with the SEC in connection with the alleged Ponzi scheme run through MJ Capital Funding and MJ Taxes and More. The scheme raised $196 million from investors and was operated by Johanna M. Garcia. Castellanos raised at least $25.2 million from 1,222 investors by promising returns of 10% or more per month from purported merchant cash advance loans. Garcia pleaded guilty and received a 20-year federal prison sentence in December 2024. Co-conspirator Pavel Ramon Ruiz Hernandez, who raised approximately $46 million from more than 5,100 investors, pleaded guilty in 2023 and was sentenced to nine years and two months in prison. Investor losses were estimated at nearly $90 million. 

Damian Castilla, 52, of Florida, who was previously convicted in connection with a Ponzi-style commodities investment fraud, was arrested again on new fraud charges while on probation from the earlier case. Authorities allege Castilla falsely held himself out as a commodities broker and diverted investor funds for personal use rather than legitimate investments. The original scheme allegedly defrauded at least one investor out of more than $300,000. Investigators now claim that while released on bond after his 2020 arrest, Castilla solicited another victim and obtained approximately $20,000 through similar misrepresentations. Castilla had been released from prison in November 2025 and was on probation until 2045. 

Terrence Chalk aka “Dr. Terrence Cash,” 64, of New Jersey, was ordered to pay more than $1.7 million in disgorgement and interest in connection with his operation of a Ponzi-like investment fraud through Greenlight Investment Partners involving a fictitious “Chairman’s Fund.” Chalk pleaded guilty in 2024 to investment adviser fraud and was sentenced in May 2025 to three years in prison. He targeted approximately 40 primarily elderly investors, often through seminars held at Black churches, raising about $5 million between 2017 and 2020. He falsely promised high quarterly returns from pooled investments while using most investor funds for personal expenses, including a swimming pool, and to make Ponzi-style payments to earlier investors. 

Sarah Chester, 44, of Maryland, was sentenced to five years in prison and order to pay approximately $600,000 in restitution for running a Ponzi-style fraud that stole hundreds of thousands of dollars from homeowners associations. She was hired to manage the HOA funds but instead diverted HOA funds into her personal accounts and spent them on travel and luxury memberships while using money from other accounts to cover shortfalls and conceal the scheme. The scheme defrauded 1,500 people. 

Robert D. Christensen, 56, and Anthony M. Matic, 56, of Oregon, were sentenced to five years and three months in federal prison and two years and nine months, respectively, in connection with an $18 million Ponzi scheme run through their real estate investment company. The sentences exceeded prosecutors’ recommendations. They used investor funds for personal expenditures including casino trips, whiskey club memberships, massages, and cryotherapy treatments rather than legitimate investments. 

Brook Church-Koegel, David Goldman and Nicole Walker settled with the SEC for no monetary sanctions but a one-year ban in connection with their role in soliciting investments into the Woodbridge Group of Companies LLC Ponzi scheme. 

Brandon Ellington, known as “Mr. Finance,” of Illinois, was charged by state regulators with running a loan Ponzi scheme operation through Access Capital Today Inc. Authorities allege that about 300 clients invested in the real estate scheme promising high returns which Ellington broadcast on radio, television and billboards. 

Joel Frank, of Washington and Equilus Group Ltd. were sued by Washington regulators on allegations that they were running a Ponzi-like scheme that allegedly raised more than $39 million from more than 90 investors. Frank was an investment advisor and allegedly diverted investor money for personal use, issued false account statements, and used incoming funds to make fraudulent payments to earlier investors. Regulators suspended his registration, froze operations, and appointed a receiver to take control of the investment funds and investigate losses. 

Edwin Brant Frost IV, 68, of Georgia, founder of First Liberty Building & Loan, LLC, pleaded guilty to wire fraud in connection with a $140 million Ponzi scheme that defrauded at least 300 investors. Frost marketed the company heavily through conservative and Christian media outlets, branding it as part of a so-called “patriot economy” that would support small businesses and ministries while delivering annual investor returns of 8% to 16%. Frost claimed investor money would fund short-term bridge loans and real estate-backed lending opportunities, but instead used new investor funds to pay earlier investors while diverting millions for personal use. Prosecutors alleged Frost spent more than $5 million on luxury living expenses, including jewelry, a Patek Philippe watch, political contributions, rare coins, credit card bills, and a vacation home in Maine.

Nathan Fuller, of Texas, was charged by the SEC on allegations that he raised approximately $12.3 million from about 150 investors in a fraudulent scheme based on supposed proprietary AI-based trading bots that would engage in high-frequency arbitrage in trading crypto assets. He ran the crypto trading scheme through Privvy Investments LLC and Gateway Digital Investments and promised returns of 40-50% within 30 to 45 days. He also allegedly represented that investors could make profits exceeding 100% in as little as 21 days.

Rathnakishore “Ravi” Giri, 31, of Ohio, sentenced to nine years for operating a $10 million Bitcoin-related Ponzi scheme. He falsely portrayed himself as an expert in crypto derivatives trading while promising investors guaranteed profits with no risk. Authorities say he instead used new investor deposits to pay earlier participants and even continued soliciting funds after pleading guilty to wire fraud. 

Ari J. Lauer was sentenced to 11 years and five months in prison for his role in the massive DC Solar fraud scheme. DC Solar claimed to manufacture portable solar generators eligible for lucrative federal tax credits and represented that the units were being leased to third parties for steady revenue generation. Approximately $759 million was raised from investors. Lauer played a central role by using his status as an attorney to provide legitimacy to the operation while concealing the lack of genuine business activity. Several other defendants, including company founders Jeff and Paulette Carpoff, have already received lengthy prison sentences.

Edwin Emmett Lickiss Jr., 78, of California, pleaded guilty to operating a long-running Ponzi scheme that defrauded more than 90 investors out of at least $9.5 million over more than two decades. The scheme, which promised returns of more than 20%, ran from 1998 to 2024. He falsely promised safe, high-yield bond investments but instead used new investor funds to pay earlier clients and on personal expenses. Lickiss faces up to 30 years in prison at sentencing scheduled for August 2026. 

Carole Liston, of New York, settled with the SEC for $790,000 in connection with allegations that she misled investors about her trading expertise and strategy. The SEC claimed that Liston and her companies, Stock Purse Trading LLC and Liston Associates Inc., functioned as a Ponzi-style fraud in which investor funds were misused while clients were given false impressions about investment performance.

Christopher Knight Lopez, 40, of Texas, was sentenced to 10 years in federal prison after pleading guilty to conspiracy to commit wire fraud in connection with a $17 million Ponzi scheme that targeted more than 40 victims. Prosecutors said Lopez and his brother Jayson Lopez, 43, operated multiple investment entities, including Knight Nguyen Investments and Knight Advisory and Planning between 2015 and 2025. They used forged bank letters, fabricated account statements, and false claims about access to $2 billion in Treasury bonds to convince victims to invest. Instead of investing the funds as promised, they used new investor money to pay purported returns to earlier victims while diverting funds for personal use. Co-defendants Jayson Lopez and Nadir Abdel Torres, 46, also pleaded guilty and are awaiting sentencing.

Miles “Burt” Marshall, 74, of New York, pleaded guilty to charges in connection with a decades-long Ponzi scheme known as the Eight Percent Fund. Marshall raised more than $50 million from 988 investors from the 1990s through 2023, including neighbors, churches, and local organizations, by promising guaranteed 8% annual returns supposedly tied to profitable real estate investments. Marshall used new investor funds to pay earlier investors, financed his other businesses, and spent investor money on vacations, shopping, restaurants, and personal expenses. Bankruptcy filings showed liabilities of approximately $94.6 million 

Warith Deen Muhammad, 39, of Virginia, was sentenced to four years and two months in federal prison in connection with a $1.5 million precious metals Ponzi scheme run through Niagara Gold and Silver LLC that defrauded more than 12 investors. Muhammad solicited more than a dozen investors by falsely promising guaranteed profits of 5% to 10% from precious metals trading, with repayment of principal and interest within approximately 30 days. Instead, Muhammad used new investor money to pay prior investors in Ponzi-style fashion and fund his lavish lifestyle, including luxury cars and rental properties, and purchases at high-end retailers. 

Robert Newell and Black Hawk Funding, Inc., of California, agreed to pay $1.59 million to settle SEC allegations tied to a cannabis-related Ponzi-style investment scheme. Regulators accused Newell and Black Hawk of raising about $37.7 million from investors while diverting funds to unrelated uses, including payments to earlier investors and personal expenses. The settlement included disgorgement, penalties, and interest but no admission of wrongdoing.

Olena Oblamska aka Lola Ferrari, 42, a Ukrainian national, who had been accused of helping run the global Forsage cryptocurrency Ponzi scheme, has been extradited from Thailand to the United States to face federal fraud charges. Prosecutors allege Forsage operated as a pyramid scheme disguised as a crypto investment platform that defrauded investors out of roughly $340 million worldwide. Oblamska, described by authorities as the scheme’s self-styled “goddess,” has pleaded not guilty and is awaiting trial in Oregon.

Simon G. Outhwaite, Jr., 26, of Florida, pleaded guilty to charges that he defrauded investors through his investment company, Peoples Equity Group, run with Dakota Smith, who was sentenced this month in connection with the scheme.

Gregory Parker, 50, and Danielle Parker, 50, were charged in Ohio on allegations that they operated a real estate investment Ponzi scheme targeting potential investors through seminars, social media influence, and luxury lifestyle marketing. They promoted themselves online under the Instagram brand “bigbizzneesss,” portraying themselves as self-made millionaires while promising followers access to profitable Cleveland-area real estate investments. Authorities allege that investors were told their funds would purchase or renovate income-producing properties capable of generating above-market returns. Instead, prosecutors allege the couple used investor money to pay earlier victims and finance their own lavish lifestyle, including private jets, luxury vehicles, designer travel, and high-profile social media content.

Matthew Piercey, 49, was sentenced to 30 years and ordered to pay $25 million in restitution for a $35 million investment fraud scheme involving fake trading funds, false guarantees, witness tampering, and elaborate evasion attempts, including fleeing arrest using a submersible in a lake. Piercey pleaded guilty to the scheme that guaranteed profits from his investment advice. He falsely represented the nature and success of trading algorithms, his commissions and fees, and the financial stability of his investment companies, Family Wealth Legacy and Zolla. He paid back only $8.8 million of the $35 million invested.

Dakota A. Smith, 35, of Florida, was sentenced to 15 years and 8 months in federal prison for helping run a multimillion-dollar Ponzi scheme through Peoples Equity Group. Smith and his co-conspirators falsely claimed the company owned profitable aviation and e-commerce businesses, using fabricated financial records and online investor presentations to lure victims. Authorities say the scheme caused losses exceeding $20 million before collapsing.

Carl Channing Spence, 41, of Texas, was sentenced to 10 years in prison in connection with a $2.1 million Ponzi scheme run through AEI Financial. He promised 10% to 12% returns from investments in “meme stocks” that were popular during rapid stock market gains.

Richard Teplitsky, of New York, was charged in connection with an alleged scheme run through Woodhill Capital Corporation that defrauded more than 100 investors out of more than $40 million. Teplitsky promised the investors that their money would finance equipment loans for businesses. He then provided victims with fabricated loan documents and repayment schedules to support the illusion of legitimate transactions.

Jeffrey Jace Vernon and Matthew Shane Perkins, 47, of Utah, were sued by regulators alleging that they were operating an $89 million Ponzi scheme through RentDue Capital LLC that allegedly victimized more than 200 investors across 29 states. They claimed they used conservative strategies with no leverage in options trading but instead used margin trading and high-risk strategies that resulted in large losses. Investors were promised 70% of the profits. They ran the scheme through a number of entities, including RentDue Capital Fund 1, LLC, RentDue Capital Fund 2, LLC, RentDue Capital Fund 3, LLC, RentDue Capital Qualified Fund, LLC, Forged Oak, LLC, and 720 Empire, LLC. The scheme continued through “Qualified Fund” after the brokerage accounts were shut down. Perkins previously pleaded guilty in a criminal action relating to the scheme.

John Walters, 55, of Ohio, former chief compliance officer and chief risk officer of Northwest Capital, of Ohio, pleaded guilty to charges tied to a decade-long investment fraud scheme that defrauded at least 700 investors out of approximately $72 million. He received a two-year sentence. Northwest Capital used fraudulent documents to deceive investors and lending institutions while improperly diverting funds among affiliated businesses in classic Ponzi scheme. Co-defendants Richard Scheich, James Delverne, Doug Miller, and Nancy Rathbun, have also pleaded guilty in connection with the scheme. 

INTERNATIONAL PONZI SCHEME NEWS 

England

British travel agent Shelley Simpson was sentenced to 33 months in prison after pleading guilty to defrauding 47 customers out of approximately £300,000 through a luxury holiday Ponzi scheme. Simpson accepted large payments for luxury vacations, including high-end trips to destinations such as Barbados, but often failed to book flights or accommodations. Instead, customer funds were allegedly used to finance earlier bookings and cover personal expenses, including private school fees for her children. The fraud unraveled when customers discovered that flights and reservations they believed had been secured did not actually exist.  The sentencing judge described Simpson’s operation as a “dance of deception.”

Declan Nowell, 31, was sentenced to 8 years and 1 month in connection with a Ponzi scheme that defrauded more than 600 people out of £9 million. The scheme promised returns from supposed investment in foreign currency markets, but Nowell instead spent the funds on a McLaren, a house, and designer clothing.

India

Authorities arrested fugitive Nowhera Shaik, accused of running a massive Ponzi scheme through Heera Group, that allegedly collected billions from investors with promised high returns, diverting funds into assets and delaying restitution efforts. 

Authorities attached approximately ₹1.06 crore in assets tied to the alleged Global Media App Ponzi scheme, an online investment fraud that authorities say generated more than ₹45 crore from victims across India. Investigators allege the app masqueraded as an advertising-rewards platform that promised users passive daily income for watching videos and purchasing increasingly expensive VIP membership tiers.

Shivanand Neelannavar was arrested on accusations of promoting an illegal Ponzi-style financial operation that allegedly collected funds through unauthorized investment activities while promising high returns to participants. 

Authorities uncovered a massive Ponzi fraud linked to the QFON app, which allegedly promised monthly returns of up to 10% through a fake digital business platform. Authorities say the operators used multi-level marketing tactics, social media campaigns, seminars, and cash networks to recruit investors. More than Rs 200 crore allegedly flowed through the scheme before several suspects fled abroad. 

Nigeria

Nigerian police announced the arrest and repatriation of Chinese national Xu Qing, who is accused by Chinese authorities of masterminding a $245 million Ponzi scheme involving the illegal solicitation of public deposits. Qing fled China for Nigeria in late 2024 after allegedly defrauding hundreds of investors through a large-scale investment scheme. Authorities allege that the scheme involved illegally raising massive sums from the public under false investment representations before collapsing and triggering substantial investor losses. Qing has now been returned to China to face prosecution.

April 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for April 2026. There were at least 7 new Ponzi schemes revealed this month, 4 guilty pleas, and more than 28 years of prison sentences. The average age of the fraudsters was about 54 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed.

Matthew James Addy, 47, was sentenced to 51 months in prison for running a Ponzi scheme that defrauded victims out of nearly $750,000. He used the money to repay more than $2 million to victims of a previous con that had landed him in prison for 4 years more than a decade ago.

Jose Bello, 38, of Florida, was charged in connection with an alleged Ponzi scheme that promised returns to investors from supposed short-term, high return loans for real estate transactions or storm damage repair. Authorities allege he raised at least $5.7 million and caused losses of at least $1.8 million. 

Tyler Bossetti, 31, of Ohio, was sentenced to 6 years in prison and ordered to pay more than $12.5 million in restitution in connection with a real estate program he promoted as a social media influencer through Boss Lifestyle LLC. He guaranteed 30% returns in short periods of time. He received $23 million from more than 140 investors and more than $11 million was lost. 

The estate of John R. Brodacki, III and Castle Hill Financial Group LLC were sued by the SEC on charges that they engaged in a $1.68 million Ponzi scheme that defrauded at least 18 clients. They were acting as investment advisors but were not registered and were making Ponzi-like payments.

Vincent J. Camarda, 62, pleaded guilty to charges that he ran a Ponzi scheme as an investment officer. He is the ex-CEO of A.G. Morgan Financial Advisors and used investor funds on plastic surgery for himself and luxury goods.

John Farahi, 54, of California, was indicted on charges that he ran a $20 million Ponzi scheme. He allegedly ran the scheme through New Point Financial Services, which he claimed generated returns from low-risk investments in certificates of deposit, corporate bonds, and deeds of trust. He lost at least $15 million and used funds to support his luxurious lifestyle. David Tamman, New Point’s corporate counsel, was also indicted on charges that he obstructed the SEC investigation.

Jose Fernandez had a final judgment and sanctions ordered against him in the SEC action alleging that he ran a Ponzi scheme through Avail Progression, LLC and Elite Generators, LLC. The scheme raised at least $4.3 million and promised guaranteed profits from foreign exchange trading. 

Joel Richard Frank, of Washington, and his companies, naming Equilus Group, Inc. dba Equilas Financial Group and Equilus Capital Partners, LLC, were charged by state regulators with securities violations tied to a $39 million alleged scheme. They used multiple funds to run the scheme, including Cheney Park Commons I, Cheney Park Commons II, OldTown Commons, and ECP Opportunities Fund I and Meadow Wood DST.

Edwin Brant Frost IV, 68, of Georgia, the former president of First Liberty Building & Loan LLC, was charged in connection with the alleged Ponzi scheme that raised at least $140 million from at least 300 investors. Frost solicited investor to invest in short-term small business loans and promised between 8 and 18% returns. He spent more than $5 million on personal expenditures. Frost pleaded not guilty to the charges.

David Hardcastle, 61, pleaded guilty to charges relating to two fraud schemes, Bitwise Industries and Voyager Pacific Capital Management. The schemes caused $45 million in losses. Hardcastle admitted to his role in a $20 million high interest loan scheme through Bitwise in which loans were made to Startop Investments LLC, an entity he operated with Andrew Adler. Hardcastle also pleaded guilty to the Voyager Pacific scheme, which was a real estate investment firm. John Giarmarco and Vanessa Lung-Medlock were sued by the SEC, along with Hardcastle, in connection with the Voyager scheme.

Jean Joseph aka Jon, 55, and his wife, Janalie Camille Bingham, 55, of Florida, pleaded guilty to charges that they were running a scheme that raised more than $50 million from investors. They ran the scheme through Wells Real Estate Investment LLC. Joseph was convicted of wire fraud in 2019 but continued to direct the real estate fraud scheme while in custody.  The couple falsely represented that investors would receive returns from the acquisition and improvement of residential and commercial real estate, and they represented that they had a $450 million real estate portfolio. They used more than $2 million for personal expenditures.

John Jay Kersey, 65, of Ohio, was sentenced to 5 years in prison in connection with an $8.6 million Ponzi scheme run over 20 years. Kersey was a financial advisor and convinced his clients to move the investments into other funds, but stole the funds for his own benefit. He pleaded guilty to the scheme last year. 

Taino Lopez aka Tai, 48, was sued by the SEC on charges that he was running a $112 million Ponzi scheme. Tai is a YouTuber who sold get-rich-quick advice courses. He co-founded Retain Ecommerce Ventures with Alex Mehr, and they raised more than $230 million for hundreds of investors. May Burkenroad, Lopez’s cousin, was also named in the lawsuit.

Jay Lucas, 71, was charged by the SEC on allegations that he raised $50 million from more than 200 investors in a Ponzi scheme run through Lucas Brand Equity LLC. He was previously criminally charged in connection with the scheme.

Arsen Lusher, 50, of New Jersey, was sentenced to 3½ years in prison and ordered to pay more than $8.7 million in restitution in connection with a trucking Ponzi scheme. He promised returns of 30% to 40% from the purchase of the trucks. He raised more than $40 million, and investors lost almost $9 million.

Sudheesh Nambiar, 39, California, was charged by the SEC on accusations that he was running a $43 million Ponzi-like scheme as a day trader through Spartan Trading. The scheme allegedly defrauded more than 400 investors and promised them 70% of the profits. He lost approximately $21 million in trading losses and launched a separate fund called Spartan Trading Capital Fund, LP, raising about $900,000 from 9 investors.

Gary Rathbun, of Ohio, died by suicide, prior to his appearance at trial on charges relating to the Northwest Capital Ponzi scheme. Rathbun, along with four others, were facing charges that they ran a decades-long Ponzi scheme. Rathbun’s wife, Nancy Rathbun, pleaded guilty to the charges earlier this year. James Delverne, Doug Miller and Richard Scheich have all each previously pleaded guilty as well. 

Ronald Roach, 59, of California, was sentenced to 5½ years in prison for his role as the accountant for DC Solar. He lied to investors to help DC Solar hide the lack of third-party lease revenue in the scheme. Others involved in the scheme are Jeff Carpoff, 55, Joseph Bayliss, and Ari Lauer, 61.

James Wellesley aka Andrew Fuller and Andrew Templar, was sentenced to 10 years in prison in connection with a wine Ponzi scheme that defrauded 140 victims out of $97 million. He claimed to be an executive broker for fine wine collections and, along with Stephen Burton, solicited investors to invest in Bordeaux Cellars. They claimed that Bordeaux Cellars brokered loans between investors and high net worth wine collectors that would be fully collateralized by high-value collections of wines. 

INTERNATIONAL PONZI SCHEME NEWS 

China

Liu Bi’an was sentenced to life imprisonment for his role as the mastermind behind a Ponzi scheme that raised more than $4.6 billion. The scheme was run through Zhongzhan Huaxin Group and affiliated companies. Liu and 15 others were found guilty in connection with the scheme that promised high returns and guaranteed principal and interest. In addition to the life sentence, Liu was stripped of his political rights for life and all of his personal property was confiscated.

March 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for March 2026. There were at least 4 new Ponzi schemes revealed this month, 4 guilty pleas, and more than 35 years of prison sentences. 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.

Van Laurence Barker, 33, was accused of running a Ponzi scheme through his rehab companies, Lighthouse Estates and Red Door Legacy, and his rental company Starpoint Holdings. More than $1.1 million was invested into the alleged scheme. Barker is in federal custody on unrelated child pornography and other charges.

Jeffrey Crawford, of Ohio, was sentenced to 4-5 years in prison for running a Ponzi scheme that defrauded victims out of nearly $3 million. Crawford previously pleaded guilty to the scheme that involved home building. He falsely claimed construction milestones had been met and contractors had been paid while he instead diverted funds to other projects and his personal expenses.

Nathaniel Darnell was fined $500,000 for his role in the First Liberty Building & Loan scheme that allegedly defrauded approximately 300 investors out of at least $140 million. 

Christopher Alexander Delgado, 34, of Florida, was arrested on allegations that he ran a $328 million investment fraud through Goliath Ventures aka Gen-Z Ventures. The scheme supposedly gave investors access to cryptocurrency and bitcoin mining opportunities, promising monthly returns from “cryptocurrency liquidity pools.” Goliath Ventures filed bankruptcy reflecting at least 1,500 victims. 

Maria Dickerson aka Dulce Pino and Dulce Brubaker, 49, of California, pleaded guilty to charges that she ran a Ponzi scheme through Creative Legal Fundings of CA. Dickerson misrepresented that that the operations were associated with a multinational casino. She promised at least 10% returns per month and lured in over 100 investors who invested $1million.

Evangelos Drosos, 51, of New Jersey, pleaded guilty to charges relating to a $10 million Ponzi scheme he admitted running between 2013 and 2025. Drosos solicited funds from investors promising returns from a variety of investments. Investors lost approximately $3 million. He then orchestrated a check kiting scheme after the Ponzi scheme failed. 

Brent Shane Haigler, 43, of North Carolina, was sentenced to 2 years and 9 months in prison in connection with a real estate scheme. He defrauded at least 25 victims out of $1.5 million. 

Bin Hao and his company Qidian LLC, of Florida, had a judgment entered against them in the SEC case against them relating to a Ponzi scheme that they ran. The scheme raised at least $10.3 million and promised returns of 8% to 25% from real estate loans. 

Randy Hough, of Georgia, was fined and is the subject of a criminal referral for his role in the First Liberty Building & Loan Ponzi scheme. He is being asked to leave his seat on a school board as a result of his alleged involvement in the $140 million scheme.

Timothy France Johnson, 63, pleaded guilty to charges relating to a Ponzi scheme he ran as a promoter of preseason NBA games. He collected more than $3 million from investors, promising zero risk and a guaranteed return. He falsely represented that, as a third-party promoter, he would use investor funds to obtain venues and fund the marketing and promotion of the games. 

Ari Lauer, 61, was sentenced to 11 years and 5 months in prison for his role in the $912 million DC Solar Ponzi scheme. Lauer had pleaded guilty to actions taken in his role as outside counsel for the scheme. DC Solar purported to sell mobile solar generators to provide emergency power to cellphone towers and lighting at sports events. Ronald J. Roach, 57, pleaded guilty this month to charges relating to the scheme.  Jeff Carpoff, 55, was previously sentenced to 30 years in prison and his wife, Paulette Carpoff, 52, was sentenced to 11 years. 

Marat Likhtenstein, 65, of New York, was indicted a second time in connection with a Ponzi scheme. He was indicted last year for allegedly stealing $1.2 million from 10 investors in a Ponzi like scheme. He has now been indicted on separate charges that he allegedly stole $852,000 from 5 other investors. He promised investors return as high as 30% from business opportunities he claimed he was not able to discuss.

RAD Diversified filed for bankruptcy, estimating liabilities between $50 million and $100 million and listing more than 5,000 individual investors. Regulators are investigating the operations which have been alleged to be a Ponzi scheme.

Ralph Rogers III aka Tres Rogers, 63, of Illinois, was sentenced to 6½ years in prison in connection with a scheme that defrauded investors. He promised returns from purported business opportunities in fiber optic cable installation, computer chip manufacturing for Tesla and a fitness recovery study. Instead of investing the money, he used the money from his personal benefit and to make Ponzi scheme payments to investors.

Sanjay Singh was ordered to pay over $51 million in restitution in connection with the Ponzi scheme run through trucking company Royal Bengal Logistics, Inc. Singh was sentenced to 23 years in prison in 2025 in connection with the Ponzi scheme that targeted approximately 2,000 investors mostly in the Haitian-American community. More than $158 million was raised from investors on promises of returns from a thriving trucking business. 

Brooklynn Chandler Willy, 46, of Texas, pleaded guilty to running a Ponzi scheme through Queen B Advisors LLC dba Texas Financial Advisory and Chandler Capital Holdings. Willy convinced investors to in invest in Ferrum Capital and other investment companies run by co-defendants Joshua Allen and Michael Cox. 

Stefan Ciopraga and YieldTrust.ai were sued by securities regulators in Montana, Texas, and Alabama on allegations that they were perpetrating a Ponzi scheme. They claimed that the decentralized application called YieldBot is “powered by cutting-edge artificial intelligence” and is “capable of executing 70 times more trades with 25 times higher profits than any human trader could.” The scheme promised returns of 2.2% per day.

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Bertram Earl Jones was sentenced to 11 years in prison in connection with a $50 million Ponzi scheme that defrauded 158 investors.

India

Ayush Varshney was arrested for his role in the GainBitcoin Ponzi scheme.

Nigeria

Adonu Kingsley Ifeanyi was arraigned on charges that he operated a Ponzi scheme that involved N10 billion.

Philippines

Authorities revoked the incorporation of Dual Fuel Petroleum Corp. on allegations that it was running a Ponzi scheme. The incorporators are Charles Clifford Matta, Renaissance Matta, Marithe Charenai Matta, Mark Harvey Matta and Cecilio Flores.

Valtoro Spartan Consultancy Corp., Recson Land Ventures and Realty Development Corp. were shut down as illegal investment schemes. Valtoro’s incorporators, Kelly Reno Escaner Velayo and Jether Llavan Marañon, along with Corporate Secretary Kyle Matthew Castro Jarque, were also found liable for investment fraud. They promised returns of up to 912.50% in as little as 15 days.

February 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for February 2026. There were at least 7 new Ponzi schemes revealed this month, 10 guilty pleas, 2 criminal convictions, and more than 55 years of prison sentences. The average age of the fraudsters was about 46 years old. Please 

Christian Montiel-Caleit, 45, of Mexico, was indicted in Utah on charges that he was running a $1 million Ponzi scheme that defrauded 30 investors. He promised 100% returns in 12 months from flipping vehicles and real estate, creating entertainment events and issuing high-interest loans.

Matthew Campbell, 43, of California pleaded guilty to a $9 million real estate Ponzi scheme. He operated the scheme through Preferred Property LLC and Ampez Rehab Investments LLC and promised returns from the supposed buying, renovating, and selling of properties.

Joel Castellanos, of Florida, settled the SEC’s claims against him in connection with an alleged $196 million Ponzi scheme run through MJ Capital Funding LLC, MJ Taxes and More, Inc., and Johanna M. Garcia. The scheme defrauded at least 1,222 investors through a fraudulent securities offering. Castellanos was accused of selling unregistered securities and helping to raise more than $25 million for the Ponzi scheme.

Timothy Nathaniel Darnell, of Georgia, was accused of steering $6.6 million, mostly from senior citizens, into the First Liberty Building & Loan scheme. Darnell was barred from serving as an investment adviser and was ordered to pay a $500,000 civil penalty.

Christopher Alexander Delgado, 34, of Florida, was accused of running an alleged $328 million investment fraud through Goliath Ventures aka Gen-Z Ventures. The scheme supposedly gave investors access to cryptocurrency and bitcoin mining opportunities, promising monthly returns from “cryptocurrency liquidity pools. 

Evangelos Drosos, 51, of New Jersey, pleaded guilty to charges that he ran a Ponzi scheme that defrauded victims out of more than $10 million. Drosos ran the scheme through ADMS Management LLC, Dinastia Corporation dba WRD Consulting and Investment Group Inc., Drosos Lorenzo & Associates P.C., and Leventes LLC.

Milendophe Duperier, 33, and Vanessa Joseph, 26, of Massachusetts, agreed to plead guilty to a $3.2 million Ponzi scheme that promised returns from securities trading. The scheme ran for 5 years, and the pair took out small business loans which they used to make what appeared to be returns on investments.

Devin Ward Elder, 47, of Texas, pleaded guilty to charges relating to a $69.5 million Ponzi scheme that defrauded 345 investors. Elder ran the scheme through DJE Texas Management Group LLC and had 17 real estate investment offerings, including investments in multifamily apartment complexes, industrial flexible workspace units, land and commercial building projects. 

Brant Frost V, of Georgia, was fined $500,000 in connection with his investment fraud run through First Liberty Building and Loan. He was also barred from working as a broker or investment advisor. Frost’s father, Brant Frost IV, and First Liberty was accused of running a Ponzi scheme that defrauded 300 investors out of $140 million.

Xiao Hu aka Mark Hu, 55, formerly of New Jersey, was indicted on charges that he ran a Ponzi scheme through Skyline Technologies USA LLC. Skyline was purportedly a technology company that was developing and using artificial intelligence trading products. Investors were promised returns of 10% to 22% and lost more than $1 million.

Andrew Hamilton Jacobus, 64, was sentenced to 20 years in connection with a $94 million Ponzi scheme that defrauded more than 150 investors, many of whom were Venezuelans. He ran the scheme through Finser International Corp. and Kronus Financial Corp. and promised annual returns of 12% to 15% on certificates of deposit and other fixed-income securities.

Patrick James and Edward James were indicted on charges relating to an alleged Ponzi scheme run through First Brands Group LLC. They are accused of defrauding lenders by promising returns from a supposedly successful international auto parts business. The brothers maintain that they are innocent. Peter Andrew Brumbergs has pleaded guilty to the scheme. Related companies Cardone Industries, Brake Parts and AutoLite have begun winding down, while First Brands is in bankruptcy. 

Charles Lawrence Jr. entered into a consent judgment with the SEC and will pay nearly $4 million in connection with a $5 million fraudulent scheme run through Landes Prive LLC.

Marat Likhenstein, 65, was charged by the SEC on allegations that he operated a Ponzi scheme that targeted the Russian-American Jewish communication. The scheme raised more than $4.1 million from at least 15 investors, promising them large returns through his “side business.” Likhenstein was also identified in connection with the scheme.

Christopher Knight Lopez, 40, of Texas, pleaded guilty to charges relating to a scheme that he ran with his brother, Jayson Lopez, 43, that defrauded more than 40 victims out of more than $17 million. The scheme was run through Knight Nguyen Investments, Knight Advisory and Planning, Aevum Holdings Inc., Exempt Management LLC, and Ping An Financial Services Pte. They claimed access to $2 billion in U.S. Treasury bonds and represented that they could use these funds to finance clients’ businesses if the clients paid large advance fees. Jayson Lopez previously pleaded guilty, and Nadir Abdel Torres, 46, also previously pleaded guilty and admitted to helping the brothers obtain forged letters and bank statements.

John Masanotti Jr., 71, of Connecticut, was sentenced to 7.5 years in prison in connection with a $4 million Ponzi scheme run through Middlesex Group LLC. He promised returns from supposed investments in foreign currencies or companies that were going public.

Warith Deen Muhammad, 39, of Virginia, was convicted on charges relating to a Ponzi scheme run through Niagara Gold and Silver LLC. He promised guaranteed returns of 5% to 10% within 30 days from trading precious metals. More than 12 investors invested more than $1.5 million. He used much of the money to fund a lavish lifestyle.

Todd Douglas Mulliner, 61, of California was arrested on allegations that he was running a Ponzi scheme that involved stock options trading.

Ramil Ventura Palafox, 61, a U.S. and Philippine citizen, was sentenced to 20 years in prison in connection with the $200 million bitcoin Ponzi scheme run through Praetorian Group International. The scheme defrauded over 90,000 investors and promised investors daily returns of .5% to 3%. Investors lost at least $62.7 million.

Matthew Shane Perkins, 47, of Utah, pleaded guilty to charges that he ran a $89 million Ponzi scheme that defrauded over 200 victims. He falsely claimed he was a successful day trader. He ran the scheme through Forged Oak LLC and had an arrangement with RentDue Capital LLC which raised funds for the scheme.

Sergei Potapenko, 40, and Ivan Turõgin, 40, were sentenced to time served in connection with a cryptocurrency Ponzi scheme run through HashFlare. More than $577 million was invested, and authorities seized assets valued at more than $450 million.

Nancy Rathbun, the spouse of Gary Rathbun, a former Northwest Capital manager, pleaded guilty to charges of attempted money laundering. Others who have pleaded guilty to the scheme are James Delverne, Doug Miller, and Richard Scheich. 

Ismael Sanchez was found liable in Texas for operating a $300 million cryptocurrency Ponzi scheme that targeted more than 40,000 investors. The scheme was run through CryptoFX that guaranteed returns of 15% to 100% from crypto and foreign-exchange investments.

Jeffrey Slothower was sentenced to 6 years in prison and ordered to pay $1.16 million in restitution in connection with a scheme to defraud his clients at his advisory firm, Battery Private Inc. He promised returns from investments in bonds backed by homeowner association fees.

Cari Channing Spence, 40, of Texas, pleaded guilty to his role in a Ponzi scheme run through AEI Financial. He promised returns of 10% to 12% from stock trading that specialized in “meme stocks.” He obtained approximately $2.1 million from investors.

Mina Tadrus, of Florida, was sentenced to 2½ years in prison and ordered to pay $4.2 million in restitution in connection with a Ponzi scheme run through Tadrus Capital. The scheme raised more than $5.7 million and promised returns of 30% from supposed AI-driven high-frequency trading models that could consistently outperform the markets.

Jed Wood, Joshua Link, Tia Link, Taylor Bang, and Royana Thomas were indicted on charges relating to the Texas cattle-buying investment scheme run though Agridime LLC. The alleged Ponzi scheme involved the supposed purchase and raising of cattle, and meat processing business. Agridime promised over 2,000 investors 15% to 32% returns and raised between $191 million and $220 million.

INTERNATIONAL PONZI SCHEME NEWS 

England

Declan Nowell, 31, pleaded guilty to charges that he defrauded more than 600 people out of £9 million in a Ponzi scheme run through his investment company, Investing4You. The scheme promised returns from trading foreign currencies online.

India

The plea agreement of Armen Atian was rejected by the Court. Atian had plead guilty in connection with a jewelry and precious stone scheme run through Platinum Hern Pvt Ltd that promised 6% to 12%. Authorities report that 14,964 investors suffered a loss of Rs 148.89 crores.

New Zealand

Authorities warned that BG Wealth/DSJ Exchange was a Ponzi scheme and, in cooperation with authorities in Tonga, has removed more than 800 websites relating to the scheme. The scheme is part of a larger scheme run through TXEX.

Nigeria

Bamu Gift Wandji was arrested on charges that he operated a fake cryptocurrency investment platform known as Polyfarm. 

Authorities warned against investing in AURUM BOT and ModMount Services Limited as they are unlicensed, promising guaranteed and unrealistically high returns. 

Venezuela

Rosa Maria Gonzalez was arrested as a suspect in Argentina’s Generación Zoe cryptocurrency scheme. The scheme defrauded investors out of at least $120 million. Generación Zoe promised returns of up to 7.5%. González had claimed that the trading algorithm she developed had quantum security features and could yield 70% monthly returns.

January 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for January 2026. There were at least 11 new Ponzi schemes revealed this month, 6 guilty pleas, 2 criminal convictions, and more than 42 years of prison sentences. The average age of the fraudsters was about 44 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Satish Appalukutty, of California, was charged by the SEC on allegations that he defrauded at least 100 investors out of at least $37 million. He ran the scheme through Lorven Funds and Lorven Advisors LLC, soliciting many of his investors through a Hindu temple he attended. He promised returns ranging from 8% to 62.5% annually from the purchase of well-known stocks at a discount and the purchase of private pre-IPO stocks. He alleged misappropriated approximately $6.7 million for is personal expenditures and used approximately $4.4 million for his software startup, Vistalytics Inc.

Todd Burkhalter, 54, of Georgia, pleaded guilty in connection with the Ponzi scheme run through Drive Planning LLC that defrauded more than 2,000 people out of $380 million. Gerado “Gerry” Linarducci, 61, of Indiana, was charged in connection with the scheme. David Bradford pleaded guilty last month. Drive Planning marketed investment opportunities like the “Real Estate Acceleration Loan” (REAL) and the “Cash Out Real Estate Fund” (CORE). Burkhalter promised guaranteed returns of 10% every three months but never used the funds for the purposes he claimed. Instead, he bought a yacht, a luxury condo, luxury vehicles, jewelry and chartered private jets.

Ricardi Celicourt and Brisly Guillaume were ordered to pay the SEC more than $1.48 million for their role in the Royal Bengal Logistics Ponzi scheme. The scheme raised approximately $112 million from 1,500 investors and targeted Haitian-Americans. Sanjay Singh was sentenced to 23 years in prison last year in connection with the scheme.

Wynn A.D. Charlebois, 55, of North Carolina, was sentenced to 6 years in prison and ordered to pay more than $5.7 million in restitution for orchestrating a Ponzi scheme through his companies, WC Private, Wilcox Hybrid, Damon Investments, and others. He promised returns from risk-free investments, subscription agreements, and loans. He defrauded more than 40 victims out of approximately $6 million.

Mark Dente, of Ohio, took the Fifth Amendment against self-incrimination during trial relating to an alleged scheme he ran through AEM Services LLC. AEM Services LLC purported to manage a portfolio of real estate investments, and Dente sold investors securities in this portfolio in the form of promissory notes and LLC interests. He is accused of defrauding investors out of $200 million.

Sylvein William Maximilian D’Habsburg XVII, 49, of California, pleaded guilty to defrauding elderly church parishioners and others in a Ponzi scheme that took in at least $5.9 million. He ran the scheme through Wild Rabbit Technologies LLC and BAI Intelligence LLC, claiming he had artificial intelligence technology that could predict the future and detect a COVID-19 infection based solely on a video recording. He also claimed he had received $500 million in funding from high profile sources.

Travis Ford and his company Wolf Capital Crypto Trading were sued by the CFTC based on accusations that they were operating a fraudulent cryptocurrency investment pool. They collected at least $10.1 million from more than 3,375 participants. Investors deposited stablecoins after being promised daily returns ranging from 1% to 3.5% per day. That would equal annual returns of between 365% and 1,277.5%. Ford admitted to using Photoshop to create fake trade screenshots and portfolios value. Ford pleaded guilty to related charges last year and was sentenced to 5 years in prison.

Siddharth Jawahar, 38, pleaded guilty to charges relating to a Ponzi scheme run through Swiftarc Capital LLC. Jawahar invested $10 million of the $35 million of investor the funds into a single investment called Philip Morris Pakistan (PMP). He also used the following entities as part of his scheme. Swiftarc Fund LP; Swiftarc LLC; Swiftarc Holdings; SJ Investment Holdings LLC; Order of Magnitude Ventures LLC; Extra Sensory Perception Inc.; Swiftarc Growth Fund LP; Swiftarc Opportunities Fund LP; SJ Investment Holdings LLC; SV Labs SPV 1 LP; Swiftarc Venture Labs Fund GP LLC; SJDB Ventures LLC; Swiftarc Ventures LLC; Swiftarc Venture Labs Fund LP; Swiftarc Telehealth Labs Fund LP; NI Stubbs LLC; and Swiftarc Beauty Fund LP.

Robert Leake, a former NFL player, was sentenced to two and a half years in prison for running a Ponzi scheme that defrauded victims out of more than $5 million. He promised returns from luxury real estate investments, gold mines in Alaska and Ghana, and other ventures. He also fraudulently offered personal guarantees.

Matthew Melton, 61, of Colorado, was extradited from the United Kingdom to face charges relating to an alleged Ponzi scheme run through his investment fund, Price Physics. Melton promised returns of 12% per month from investments in futures contracts using a proprietary trading algorithm.

Bernardo Mendia-Alcaraz, his private equity firm, Toltec Capital LLC, and relief defendants Edith F. Ramirez Cano and Fondo Toltec S de RL de CV, had final judgments entered against them in an action filed by the SEC. The SEC accused them of running a Ponzi scheme that raised approximately $3.3 million from investors.

Doug Miller and James Delverne, of Ohio, pleaded guilty to charges relating to their role in a Ponzi scheme run through Northwest Capital. The scheme brought in approximately $72 million from at least 200 people. Richard Scheich pleaded guilty to the scheme last year. The following entities were also associated with the scheme: Briarfield Capital, ThunderRoad Partners, TRF Fund 1, TRF Fund 2, Kings Point Leasing and Winding Creek Partners.

LaShonda Moore, 38, and Marlon Moore, 39, of Texas, were convicted of running a multi-million Ponzi scheme during the pandemic. They ran an illegal chain-referral Ponzi scheme called BINT, "Blessing in No Time,” and offered 800% returns for every $1,400 investment. They also promised a refund if investors were unsatisfied. The scheme defrauded 10,000 people.

Matthew M. Motil, 42, of Ohio, entered into a final consent judgment with the SEC in connection with a scheme that defrauded investors with promises of returns from low-risk, high- return promissory notes that were to be collateralized by mortgages. He was sentenced to 70 months in prison last year.

Michael Anthony Lucci, 32, and his wife, Emily Marie Lucci, 30, were arrested on allegations that they were running an automotive title fraud scheme that involved more than $500,000.

Brett Schraber, of Minnesota, was accused of running a $100 million Ponzi scheme through his entities: EZ Capital, LLC; EZ Cash, LLC; EZ Ca$h, Inc.; BP Financial, LLC; Burnsville Check Cashing, LLC; EZ Holdings, LLC, Fridley Financial, LLC; Northfield Financial, LLC; North Shore Funding, LLC; and Orchard Investments, LLC. He promised returns from a scheme in which he said he was giving workers their workers compensation funds early as a lump sum in exchange for receiving their settlement later. A judge froze his assets, and he died by suicide the next day.

Carl Channing Spence, 40, of Texas, pleaded guilty to charges relating to a Ponzi investment scheme run through AEI Financial that took in approximately $2.1 million. He promised victims 10% to 12% for investments in popular stocks.

Caleb Joseph Ward, Jeremy George McNutt, and Geosyn Mining, LLC were charged by the SEC on allegations that they were running a $5.6 million cryptocurrency mining Ponzi scheme. They raised funds from more than 60 investors and offered them returns from investment contracts called “rental agreements” for crypto mining machines. Investors were promised 99% to 101% of the crypto mined by their rented hardware. They also offered GSYN tokens, claiming these digital tokens were backed by the company’s fleet of miners. Chester Wildey was a promoter for the scheme for which is received substantial commissions.

INTERNATIONAL PONZI SCHEME NEWS 

Algeria

Authorities accused OCM, a digital platform, of defrauding thousands of people in a Ponzi scheme.

England

The individuals operating 79th Group, a suspected £200 million Ponzi scheme were adjudged bankrupt. The sold “loan notes” to investors through third-party brokers and promised high returns that were secured by property developments.

India

Priti Rane, and her husband, Sachin Rane, and Sagar Karivdekar, were accused of running a Ponzi scheme. Investors were promised monthly returns of 4% to 5%.

Several cryptocurrency schemes were shut down, including UMT, UBIT, Ultraverse and MMMC. Nagireddy Sudheer Naidu, Mangi Soma Raju, 41, Gurala Srikanth, and Allipalli Venkata Ramesh Babu were arrested in connection with the schemes.

Raj Kundra was accused of being linked to Amit Bhardwaj and the Gain Bitcoin Ponzi scheme. The scheme promised returns from cryptocurrency mining.

Nigeria

Authorities are investigating Enoch Adeoye and a cryptocurrency platform operating under Agape Trade and Agape Thrift. Approximately 950 investors invested in the scheme.

Philippines

Authorities shut down Seek Explore Sports Association Inc. and fined the company P1 million. Investors were promised substantial returns and commissions of up to 17%.

Singapore

Soh Jian Kun, 33, pleaded guilty to charges relating to a Ponzi scheme run through Cortina Watch. He stole approximately $500,000 from 14 victims in a scam that involved supposed “hard to obtain” watches. Kun never obtained luxury watches, however.

South Korea

Chairman Lee, CEO Ahn, and Chairman Oh were sentenced to 12 years in prison each in connection with the Popcornsoft. They were accused of deceiving investors by holding seminars promising guaranteed returns of 15% from domestic and international futures trading through an AI trading program. Popcornsoft was fined 50 million Korean wan.

December 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for December 2025. There were at least 15 new Ponzi schemes revealed this month, 1 guilty plea, 1 criminal conviction, and about 18 years of prison sentences. The average age of the fraudsters was about 52 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

David Bradford, 53, of Georgia, pleaded guilty to a $300 million Ponzi scheme run through Drive Planning LLC. Drive Planning marketed several investments, including the “Cash Out Real Estate Fund,” or “CORE Fund,” promising “100% Passive Income from Tax Liens.” Drive Planning guaranteed investors a return of 10% every six months or a 22% return per year for up to three years. The founder of the scheme, Russell Todd Burkhalter, still faces charges in connection with the scheme.

Jordan Chirico, 41, of Indiana, was charged in connection with a $200 million Ponzi scheme involving water vending machines. As an investment fund manager, Chirico directed investor funds into Water Station Management LLC, a company in which he as an investor. The investor dollars allowed Chirico to cash out his investment, and Water Station eventually collapsed, having sold investors water vending machines that did not exist. 

Travis Ford, 36, and his company, Wolf Capital Crypto Trading LLC, were sued by the CFTC on allegations that they were running a $10 million Ponzi scheme. The alleged scheme promised daily returns of up to 3.5% and attracted over 3,000 investors.

David Gentile had his 7-year sentence commuted by President Trump. Gentile was convicted in connection with a Ponzi scheme run through GPB Capital Holdings.

Nathan Gauvin, 26, of Canada, was charged by the SEC, along with his three companies, Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC. The scheme involved crypto trading and raised over $42 million from investors and $800,000 in credit from lenders. Gauvin represented that Gray Fund had a cumulative return since inception of 4,384%. He was also criminally charged.

Jay Lucas, 71, of New Hampshire, was accused of running a $50 million Ponzi-like scheme through Lucas Brand Equity. Lucas promised returns from investments in early-stage health and wellness companies. He diverted money to Immunocologie, much of which was used for personal expenses and vacations.

Matthew Melton, 61, of Colorado, was extradited from the United Kingdom to the U.S. to face allegations in connection with an alleged Ponzi scheme run through Price Physics, an investment fund that Melton represented used a proprietary algorithm to invest in futures contracts to generate monthly returns of 10%. He defrauded at least 20 investors and used some of the $3.4 million he brought in on personal expenses.

Magdaleno Mendoza, 56, was sentenced to 6 years and 11 months and ordered to pay almost $800,000 in restitution and forfeiture in the amount of $1.5 million for his role in the IcomTech Ponzi scheme. The cryptocurrency scheme was run with David Carmona, Marco Ruiz Ochoa, Gustavo Rodriguez, David Brend, Juan Arellano, and Moses Valdez. Mendoza was a promoter of the scheme who helped prey on Spanish-speaking victims.

Robert Narvett was convicted of running a Ponzi scheme that defrauded approximately 70 investors out of more than $2 million. The CFTC had also previously sued Narvett for fraud and misappropriation, and he was permanently banned from trading.

Matthew Neet, 43, of Georgia, was charged in connection with an alleged $940,000 ticket fraud scheme. Neet offered investors and football fans fraudulent property investment opportunities and offered to sell tickets for football games when he had no intention of providing tickets. 

Steve Parish, 54, Richard Dean, 66, and Joshua Owen, 39, were charged in Kansas in connection with an alleged Ponzi scheme run through Premier Global Corp, DDI Advisory Group, LLC, and Premier Factoring, LLC. The scheme involved the supposed purchase of factored invoices.

Kevin Patel, of New Hampshire, was accused of violating state financial laws in connection with an alleged Ponzi scheme run through Royal Investments that brought in $386,000.

Mina Tadrus had a final judgment entered against him in connection with a Ponzi scheme he ran through Tadrus Capital LLC and Tadrus Capital Fund, L.P. The scheme targeted members of the Egyptian Coptic Christian community and raised more than $5 million from at least 31 investors. Investors were promised guaranteed returns from algorithmic trading.

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Joseph Papalia, 75, was sentenced to 11 years and 8 months in jail in connection with a Ponzi scheme that stole $9.6 million from 41 investors. The scheme ran from 2007 to 2021. He represented that he had contracts with big-name companies like Walmart, Kmart and Rio Tinto to import products.

India

Bijoy Pandit, and 3 others, were arrested in connection with an alleged Rs 200 crore Ponzi scheme.

Four Chinese nationals, Zou Yi, Huan Liu, Weijian Liu, and Guanhua Wan, were charged, along with 13 other individuals and 58 companies, for their involvement in a cyber fraud Ponzi scheme.

Authorities raided 21 premises in connection with an alleged cryptocurrency scam run by 4th Bloc Consultants. The scheme involved professional-looking websites that mimicked legitimate crypto exchanges but that had fake dashboards and account balances.

Kazakhstan

Authorities are investigating Sincere Systems Group Ltd, an alleged Ponzi scheme operating under the guise of a British investment fund. The company claimed to manage foreign exchange assets and engage in digital mining and trade. It also claimed to own its own crypto assets, SWP and SWCT.

New Zealand

Alexander Kokouri Tuira aka Alex Tuira, and his former partner Aroha Awhinanui Tuira, were sentenced to 6 years, four months, and five years, two months, respectively, in connection with a Ponzi scheme. The scheme defrauded 55 investors out of nearly $4 million. 

Nigeria

The SEC flagged Glorious Wealth Fund as a Ponzi scheme. Glorious Wealth claimed to be a licensed investment platform offering investments in Nigerian stocks and other financial investments. 

An alleged Ponzi scheme run through EMAAR was revealed. The scheme defrauded more than 4,000 Nigerians.

The SEC sought to seize bank accounts belonging to Crypto Bridge Exchange aka CBEX and 25 other defendants alleged to have operated a digital asset Ponzi scheme that defrauded Nigerians out of N1.3 trillion. 

Philippines

Authorities shutdown Seek Explore Sports Association, Inc. and issued a P1 million fine on allegations that the company was running a Ponzi scheme. Investors were promised commissions of 17%.

Portugal

The IR Group was revealed as a Ponzi scheme that defrauded foreign nationals out of €37 million who were seeking golden visas through property investments. The scheme promised returns between 7% and 10% from luxury developments that were nonexistent.

Thailand

Nana Rybena was arrested on charges that she ran a Ponzi scheme that defrauded investors out of 190 million baht in four virtual businesses. She promised monthly returns of between 4% and 7%.

November 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for November 2025. There were at least 6 new Ponzi schemes revealed this month, 5 guilty pleas, 1 criminal conviction, and about 100 years of prison sentences. The average age of the fraudsters was about 52 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Robynne Alexander, 63, of Massachusetts, was sentenced to 2½ years in prison in connection with a fraudulent real estate investment scheme that defrauded investors out of more than $3 million. Alexander fraudulently raised money for a real estate venture in Raxx-LeMay, LLC and Elm and Baker, LLC.

Milendophe Duperier, 34, of Massachusetts, was sentenced to 5 years in prison in connection with a scheme he ran with his girlfriend, Vanessa Joseph, 27, who was sentenced to one day. They promised investors returns from securities investments and brought in more than $3.2 million. Duperier pretended to be an investment advisor and did not use the funds for investment purposes. The pair acquired funds from the SBA and Paycheck Protection Program during COVID, but did not use them for payroll and instead paid existing investors in the scheme.

Travis Ford, 36, of Oklahoma, was sentenced to 5 years in prison in connection with a $9.4 million Ponzi scheme run through Wolf Capital Crypto Trading LLC. The firm raised funds from 2,800 investors and promised returns of 1-2% per day, or approximately 547% per year. Ford pleaded guilty in January 2025.

Michael D. Harris, 60, of Tennessee, pleaded guilty to charges that he ran a scheme that stole more than $1.5 million from 52 victims in an investment scheme. He was sentenced to 2 years and 9 months and ordered to pay over $1.5 million in restitution. Investors were promised 10% returns through promissory notes or membership interests.

Andrew Hamilton Jacobus, 64, of Florida, pleaded guilty to charges stemming from a Ponzi scheme that defrauded mostly Venezuelan nationals. The scheme involved $94 million that was invested in Kronus Financial Corporation and Finser International Corporation.

James Johnson, 78, and Darrell Niswonger, 69, of Missouri, were sentenced to 15 years and 8 months, and 12½ years in prison in a Ponzi scheme that cost at least 99 victims $5.7 million. They promised investors 5% returns from supposedly safe investments in municipal bonds. They ran the scheme through Johnson & Niswonger Financial Resources LLC.

Linh Thuy Le and Trong Hoang Luu, of California, were charged by the SEC in connection with an alleged Ponzi-like scheme run through Inventis Ventures, LLC. They raised at least $26.6 million from at least 1,400 investors and guaranteed returns of 15% per month with a return of principal after one year. The scheme involved investments in “emerging projects” in an investment portfolio involving real estate, among other things.

Solomon Lichtenstein was charged by the SEC in connection with an alleged $2.7 million Ponzi scheme run through Taraxa Capital Fund, LP and Lightstone Trading Inc. The scheme defrauded more than 25 investors by promising 5% monthly returns through day-trading securities. Criminal charges were also filed against Lichenstein.

Saththia G. Lingan and Anirudh Venkatakrishnan were charged in connection with an alleged $50 million Ponzi scheme that involved the purchase and flipping of exotic cars. In some cases, there were no cars, and in others, multiple investors provided funds for the same car.

Thomas Paul Madden, 67, of Utah, was sentenced to 8 years and 4 months and ordered to pay almost $14 million in restitution in connection with a Ponzi scheme he ran with Jeremy Tyler Grabow. The scheme defrauded more than 200 investors out of over $25 million, promising returns from penny stocks. They ran the scheme through Cascade LLC and Savitar Systems LLC.

Brian Mitchell and Kevin Mack Jr. were sued by the CFTC accusing them of running a Ponzi scheme through Young Pros Investment Group LLC. Approximately $1 million was invested, but the pair lost over $750,000.

Della Fay Perez pleaded guilty to charges that she had knowledge that Oscar Ramon Padilla, the CEO of USMEX Financial Capital, was committing bank fraud by misappropriating funds that were to be distributed to the victims of the Robert Allen Stanford Ponzi scheme.

Pablo Silverio Rebollido, 48, of Florida, was sentenced to 19 years and 2 months in prison and ordered to pay $16 million in restitution. Rebollido ran the scheme through E-Card Merchant LLC. He promised clients that they would get loans in the form of lump-sum cash advances if they gave the business a percentage of future credit card sales or daily bank deposits. He solicited investments promising returns from short-term financing. 

Marco G. Santarelli, 56, was charged by the SEC in connection with an alleged Ponzi scheme run through Norada Capital Management LLC. The scheme raised tens of millions of dollars by selling high-yield promissory notes. Santarelli has pled guilty to criminal charges.

Brent Adam Seaman, 51, of Florida, was indicted on charges that he orchestrated a Ponzi scheme that took in $36.17 million. Seaman ran the scheme through several companies known as Accanito and represented that he was an entrepreneur and currency trader. He promised returns of 18% to 30% from supposed investments into software and technologies companies and in commodities and currency.

Dakota A. Smith, 34, of Florida, pleaded guilty to charges in relation to a scheme run through Peoples Equity Group (PEG). He misrepresented that PEG owned small, profitable companies in e-commerce and aviation and that investors would own interests in the companies. The scheme defrauded investors out of over $27 million. 

Caleb Ward, 41, of Texas, was convicted in connection with a bitcoin mining Ponzi scheme run through Geosyn Mining LLC.  He promised returns from investments in specialized cryptocurrency mining equipment that he would purchase and host. He represented that he had locked in low electricity rates and that the equipment was actively mining bitcoin. More than $4.5 million was invested in the scheme.

Eliyahu “Eli” Weinstein, 51, of New Jersey, was sentenced to 37 years in connection with a fraudulent scheme that defrauded more than 150 investors out of more than $44 million. Weinstein had a previous 24-year prison sentence commuted by President Trump in 2021 for a scheme the caused losses of $230 million. Weinstein ran the new scheme through Optimus Investments Inc. using the name Mike Konig and ran the scheme with Aryeh “Ari” Bromberg, 51. They received money into Tryon Management LLC and solicited investments related to the COVID pandemic, a baby formula shortage, and the war in Ukraine. Five of Weinstein and Bromberg’s conspirators, Christopher Anderson, 49, Richard Curry, 39, Shlomo Erez, 57, Alaa Hattab, 37, and Joel Wittels, 59, previously pleaded guilty to charges stemming from the same scheme.

Clarence Woods Jr., 63, was sentenced to 18 months in jail in connection with a Ponzi scheme in which he defrauded 16 victims out of more than $550,000.

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Alev Dover, 53, was accused of masterminding a Ponzi scheme that defrauded Australians out of $90 million. The scheme was run through Dover’s Archura Group of companies in which she solicited investments in technology, infrastructure funds, and cash repatriation deals.

England

Zhimin Qian aka Yadi Zhang aka Cryptoqueen, 47, pleaded guilty to charges relating to the largest cryptocurrency Ponzi scheme involving $6 billion in stolen bitcoin. She was sentenced to 11 years and 8 months in prison. The scheme ran from 2014 to 2017 and defrauded more than 128,000 victims, promising them 200% returns. Authorities were able to track Qian by following her Malaysian accomplice, Seng Hok Ling, 46, who was sentenced to 6 years and 8 months in prison. Qian’s associate, Jian Wen, was previously convicted and sentenced to 6 years and 8 months in jail.

India

Sandeep Chowdhary and his daughter Malika Chowdhary Kapur are under investigation in connection with an alleged luxury travel business run through The Voyage Impex and The Voyage Tours. They lured in investors with promises of steeply discounted luxury vacations using “corporate travel vouchers” but provided forged documents and non-existent flight tickets.

Authorities raided 21 locations in investigating an alleged fraudulent scheme tied to Aarudhra Gold Trading Pvt. Ltd.

South Korea

Kim Jae-hee, 54, a former singer in the rock band Boohwal, has been identified as one of 69 people involved in a Ponzi scheme that collected more than $150 million. Kim is accused of having engaged in promotional activities to recruit victims. The scheme raised money from 30,000 people and promised returns of 150% over 300 days, paying .5% daily.

Spain

Alvaro Romillo aka Crypto Spain was arrested in connection with the Madeira Invest Club scheme. Authorities found nearly €30 million in his accounts. More than €260 million was invested by more than 3,000 victims. Investors were promised returns of 20% from investments in luxury watches, cars, precious metals, alcohol, and startups.

October 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for October 2025. There were at least 13 new Ponzi schemes revealed this month, 5 guilty pleas, and 34 years of prison sentences. 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. 

Matthew Beasley, of Nevada, pleaded guilty to charges relating to a Ponzi scheme that brought in $461 million from investors. A total of 948 investors lost a total of approximately $246.4 million. Beasley, a lawyer, promised returns from investments in loans to personal injury plaintiffs who were waiting to receive settlements from claims against insurance companies. Beasley paid himself $33.5 million, about $11 million of which went to pay off gambling debt.

Charles Bennett, of New York, pleaded guilty to running a Ponzi scheme that defrauded approximately 30 investors out of more than $5 million. He was charged after a failed suicide attempt when he left behind a note detailing the scheme.

Natalie Cochran, of West Virginia, who was previously found guilty of running a Ponzi scheme, was found guilty of murdering her husband, Michael Cochran. 

Kenneth D. Courtright was sentenced to 7½ years in prison in connection with a $69 million Ponzi scheme run through Today’s Growth Consultant (TGC). Courtright promised guaranteed, perpetual monthly payments backed by advertising revenue from websites. Investors could either receive half of the ad revenue from their assigned sites or a month payout equal to 15% of their initial investment. TCG collected $132.6 million in upfront fees.

Shawn Cutting, of Idaho, was charged in connection with an alleged Ponzi scheme run though CryptoTraders Management (CTM) that defrauded elderly investors. The scheme involved over $1 million that investors invested to purchase an undivided, factionalized interest in the fund.

Wayne T. Essex, 70, and his wife, Susan Essex, 67, of Ohio, were indicted on charges relating to their business run through Essex and Associations which sold investments in “opportunity zones” around the country. Investors were promised an average return of 10% per year. More than 25 victims invested a total of nearly $11.5 million.

Alan J. Hanke, 61, was sentenced to nearly 5 years in prison in connection with an $8 million Ponzi scheme. Hanke pleaded guilty to the scheme last year that ran through IOLO Capital. He promised high returns from investments in standby letters of credit, medium term notes, and high-yield bonds. He also promised that investments were insured against losses.

Ari Laurer, of California, pleaded guilty to charge related to his role in the $912 million Ponzi scheme of DC Solar. Laurer was outside counsel for the scheme that sold $2.5 billion of mobile solar generators to supposedly provide emergency power to cellphone towers and lighting at sports events. About half of the 17,000 generators did not exist. Investors were enticed by promised returns and associated federal tax credits. Laurer took action to hide the lack of money that DC Solar was making off rentals. The owners of the scheme, Jeff Carpoff and Paulette Carpoff, were previously sentenced to 30 years and 11 years, respectively.

Linh Thuy Le, 59, and Trong Luu, 58, of California, were arrested and charged by the SEC in connection with an alleged Ponzi-like scheme that defrauded more than 1,400 investors out of at least $26. million. They promised guaranteed returns of 15% or annual returns over 360%, and a return of principal in a year. They ran the scheme through Inventis Ventures, LLC and Inventis Ventures Holding, Inc.

Jason Kenneth Lehman, 46, of Washington, was arrested on charges relating to an alleged Ponzi scheme. He represented he was opening cannabis stores, but no stores were actually opened. The addresses for the supposed stores were private residences, vacant lots or did not exist. The total amount invested was approximately $400,000 from 8 investors. 

Marat Likhtenstein, 65, of New York, was sued by the SEC on allegations that he ran a Ponzi scheme through Likhtenstein Financial Planning, raising at least $4.1 million from at least 15 clients. He promised large returns from his side business of investments in business opportunities. He used his home as collateral for the notes issued to clients, but did not disclose that the home had been pledged to multiple clients. He diverted about $3.2 million for his personal use.

James Wellesley aka Andrew Fuller and Stephen Burton, two British men extradited to the U.S. pleaded guilty to charges relating to a $99 million wine Ponzi scheme. They solicited funds from investors promising returns from high-interest loans backed by rare wines. The wines never existed.

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Chris Marco, 67, was sentenced to 14 years in jail in connection with a Ponzi scheme that defrauded 6 victims out of $34 million. He promised returns from investments in private placement programs.

Canada

Sandford “Sandy” Sussman was accused of running a Ponzi scheme involving private mortgages ties to lake homes.

England

Zhimin Qian, the self-proclaimed “Goddess of Wealth,” was convicted on charges related to a $6.7 billion Ponzi scheme that defrauded 128,000 people in China. The scheme was run through Tianjin Lantial Gerui Electronic Technology Co. and promised returns of up to 300% from cryptocurrency and other investment products.

Daniel Pugh, 35, was sentenced to 7½ years in prison in connection with a £1.3 million Ponzi scheme he ran from his bedroom using Facebook advertisements. He ran the scheme through Imperial Investment Fund and defrauded 238 investors by promising them returns of 1.4% per day, 7% per week, or 350% per year.

Godfrey Egbendip, 59, was found guilty of running a Ponzi scheme in which he promised monthly returns of 10% to 15% from a property business called UK Property Investment Holdings Ltd.

India

Ajaysinh Rajusinh Makwana, Rajusinh Lalsinh Makwana and Vanrajsinh Dilipsinh Jhala were accused of running a Ponzi scheme through A.R. Consultancy and A.R. Capital. They claimed to invest in bitcoin and U.S. Treasury bills, promising investors 5%-10% interest per month.

Gaurav Bhagat, Devendra Tambe, Vikin Patne, and were arrested in connection with the alleged Ponzi scheme run through Phoenix Investments and Phoenix Financial Solutions LLP. 

Authorities arrested Pavel Prozorov, the Spanish mastermind behind the OctaFX Ponzi scheme and seized $280 million from him. OctaFX promised users accessibility to financial markets on low spread commission-free trading and promised large profits from investment in the platform. Instead, OctaFX laundered more than $96 million through fake companies and international bank accounts.

Tashin Ahmad was arrested on allegations that he was running a Ponzi scheme that defrauded over 3,000 victims.

Tadepalli Srivenkata Aditya, 43, his wife Sujatha, 42, and two agents, Gaddhamsetti Balakrishna Murthy, 51, and his wife Nagalakshmi Kumari, 41, were arrested on charges that they were running a Ponzi scheme through Advika Trading Marketing Company. The scheme defrauded over 1,100 investors and claimed to trade on international foreign exchange platforms.

Nigeria

Authorities warned that AfriquantumX, an online platform to trade cryptocurrency and stocks,  is a Ponzi scheme. Promoters of the scheme represented that the investment platform integrates artificial intelligence to optimize returns. Investments can start from as little as $250.

Philippines

Authorities issued warnings against investing with Christabel Arroyo. Arroyo solicits investment on her Facebook account for a supposed bitcoin mining and trading business.

Authorities also issued a warning against De Guzman Consumer Goods Trading which appears to be operating as a Ponzi scheme.

South Korea

Seo, the former CEO of Midas Partners, was sentenced to 16 years in prison in connection with the scheme that defrauded approximately 3,500 people out of about 350 billion won between 2018 and 2021. The scheme promised guaranteed monthly returns of about 2% interest from investments in promising small and medium-sized enterprises

Thailand

A suspect known as Kanyarat, 36, was arrested in connection with an alleged scheme involving more than 6 million baht. She lured investors into the scheme by promising returns from a supposed loan business of up to 15% per month, or 180% per year.

Liang Ai-Bing was arrested in connection with an alleged cryptocurrency Ponzi scheme run with four other people in China that brought in more than $31 million.  The scheme defrauded nearly 100 people and operated on the platform Morgan DF Fintoch. Chinese authorities previously identified the other alleged members as Al Qing-Hua, Wu Jiang-Yan, Tang Zhen-Que, and Zuo Lai-Jun. Zuo was arrested in China and released on bail; the others allegedly fled. FINTOCH even featured a fake CEO named "Bob Lambert," whose profile picture was actually that of actor Mike Provenzano. The scheme promised 1% returns per day and claimed ties to Morgan Stanley.

A Portuguese man identified as Pedro M., 39, was arrested in connection with an alleged cryptocurrency and credit card scheme involving $580 million.