April 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for April 2025. There were at least 8 new Ponzi schemes revealed this month, 2 guilty pleas, and a single prison sentence of 128 years, plus several others totaling more than 32 years. 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. 

Kenneth W. Alexander II, Robert D. Welsh, and Caedrynn E. Conner, of Texas, were charged by the SEC with operating a Ponzi scheme through the Vanguard Holdings Group Irrevocable Trust (VHG) that defrauded more than 200 investors out of at least $91 million. They promised returns of 3% to 6% per month and the return of the principal within 14 months. The scheme supposedly involved profitable international bond trading. Conner is accused of placing over $46 million of investor funds into VHG through a related investment program he operated called Benchmark Capital Holdings Irrevocable Trust.

Tyler Bossetti, 31, of Ohio, was charged in connection with a real estate scheme that defrauded investors out of more than $11 million. Bossetti is a social media influencer who promised returns as much as 30% from flipping properties. Bossetti and his companies, Boss Lifestyle LLC and Bossetti Enterprises LLC, have multiple lawsuits pending against them related to lost investments.

Russell Todd Burkhalter, 52, was enjoined by the SEC in connection with a Ponzi scheme he ran through Drive Planning LLC. The SEC had alleged that Drive Planning promised to place investor funds into land development deals that generated 10% returns every three months.

Lawrence Coven, 61, of New Jersey, was sentenced to 4½ years in prison in connection with a scheme he ran through Sunrise Enterprises LLC. He promised returns to investors from short-terms loans to borrowers who could not obtain standard loans. He guaranteed returns of 10% to 15% and told investors their investments were risk-free. There were more than $1 million in losses.

Vincent Dispoto Jr., 67, pleaded guilty to charges relating to a Ponzi scheme run through Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, a purported mortgage company.

Francius Marganda, 42, was sentenced to 18 years in prison and ordered to pay $8.5 million in restitution and $7.5 million in forfeiture in connection with a $24.5 million Ponzi scheme that defrauded over 200 investors, predominantly Indonesian and Indo-American victims. Marganda had fled the country and was extradited to the U.S. from Singapore in 2023. He had promised investors returns from programs called Easy Transfer and Global Transfer that were supposedly short-term, high- interest loan programs that would pay returns as high as 200%.

Ramil Palafox, 59, was charged by the SEC in connection with a $200 million Ponzi-like cryptocurrency scheme run through PGI Global. The scheme targeted 90,000 investors with promises of daily returns from 3% to 200% on crypto and forex investments. The SEC is also pursuing recovery from his wife, Marissa Mendoza Palafox, and his brother-in-law, Darvie Mendoza. The company, also known as PGI Global UK Ltd, was shut down in England in 2022.

Pablo Silverio Rebollido, 47, of Florida, was charged with allegations that he was running a Ponzi scheme through E-Card Merchant and E-Card Lending LLC. E-Card was purportedly in the business of providing short-term financing known as MCAs in which businesses would receive a cash advance in exchange for a percentage of E-Card’s credit card sales or daily bank deposits. Over 70 investors are believed to have invested more than $40 million.

Swapnil Rege, 50, and his wife, Reema Rege, 48, of New Jersey, were indicted on charges that they engaged in a $2 million fraudulent scheme. They promised returns of 21% to 80% to be generated through their investment company, Swapster Capital LLC.

Roberto Gustavo Cortes Ripaldi, 58, of New York, was sentenced to 10 years in prison and ordered to pay $130 million to over 110 victims in connection with a scheme run through Biscayne Capital. He and Ernesto Heraclito Weisson Pazmino were accused of causing more than $155 million in investor losses. 

Maurice Eugene Smith, of Georgia, pleaded guilty to charges that he run a Ponzi scheme that defrauded George Mason’s men’s basketball program. Smith was the travel agent for the team in 2024, who stole $160,000 from the team as part of his long-running college sports Ponzi scheme.

INTERNATIONAL PONZI SCHEME NEWS 

Brazil

Joel Ferreira de Souza was sentenced to 128 years, and Gesana Rayane Silve and Victor Veronez were sentenced to 27 years and 15 years, in connection with a Ponzi scheme known as Braiscompany. They raised approximately $190 million from 20,000 investors and promised returns from crypto trading. Braiscompany’s mastermind and owner, Antonio Inacio Da Silva Neto, and his partner, Fabricia Farias Campos, were arrested in Argentina and extradited to Brazil last year and were sentenced to 88 years and 7 months and 61 years and 11 months, respectively.

England

A Ponzi scheme known as Emeraude Friends, run by a Parisian businessman known as Pascal Z, 65, was shut down. Investors were promised annual returns of 12% to 27%, and 492 investors are believed to have lost €106 million.

Grenada

Authorities warned of a scheme run through Creators Alliance, along with other online entities such as Ride Bnb, Rain BnB and BullionX.

India

Vinod Kumar, 31, was arrested in connection with an alleged scheme that defrauded 150 victims that promised returns of up to 28% per month. The investment platform was known as Dollar Win Exchange.   

Malaysia

Authorities seized and froze assets linked to a Ponzi scheme known as Pelaburan MBI. Eight people were arrested in connection with the scheme.

Nigeria

Crypto Bridge Exchange (CBEX) was shut down by angry investors who stormed the firm’s office, and arrests followed. CBEX operated a digital trading platform and is registered as a crypto trading exchange. The CEO is Yahaya Ibrahim. The incident was triggered by the sudden crash of the platform that wiped out user account balances. Adefowora Abiodun Olanipekun, Emmanuel Oku, and four others were arrested. Authorities allege that the scheme was operated through a front company, ST Technologies International Limited.

Zimbabwe

Kunaishe Madongorere of Morelife Zimbabwe, was found guilty in connection with a scheme that defrauded investors out of $200,000.

March 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for March 2025. There were at least 2 new Ponzi schemes revealed this month, 1 guilty plea, 1 conviction, and the average age of the fraudsters was about 56 years old. At least 35 years of prison sentences were imposed. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Gregory Altieri, 57, of New York, was sentenced to 2½ years in prison in connection with a Ponzi scheme involving the buying and selling of jewelry. The SEC first charged Altieri in 2020, alleging that he raised over $69 million from at least 80 investors. He promised returns ranging from 30% to 100%

Denny Thakorbhai Bhakta, 42, of California was sentenced to 235 months in prison in connection with a scheme that involved $35 million. He solicited funds through his companies, Fusion Hotel Management LLC and Fusion Hospitality Corp. and promised returns from the purchase of discounted blocks of hotel rooms from Hilton and the sale of those rooms for a profit to United Airlines and other companies.

Elana Cohen-Roth, 80, of California, was convicted in connection with a Ponzi scheme that targeted the elderly community. She took in more than $4.8 million, promising “lucrative high-yielding investment opportunities.” Cohen-Roth is a former IRS agent.

Corey J. Dawkins, of Illinois, was ordered to pay $2.3 million in restitution to 15 investors who lost funds in Dawkins’ oil and gas Ponzi scheme. The scheme was run through Elite Wealth Partners and EWP Permian Basis Fund II, an investment company with no operating history.

Joseph Giuttari, of Rhode Island, was sentenced to 4 years and 7 months and was ordered to pay $4.6 million in restitution and fines in connection with a Ponzi scheme he ran through Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC. Giuttari held himself out as a mortgage broker specializing in short terms loans financed by third parties. He said he would match borrowers with private lenders looking for high rates of return.

John Robert Leake, 43, of Texas, was sentenced to 2½ years in prison and ordered to pay $5.3 million in restitution in connection with his Ponzi scheme in which he brought in more than $8 million from at least six victims. Leake falsely represented that he was involved in profitable luxury real estate investments, gold mines in Alaska and Ghana, and other ventures. Leake previously played college football at Clemson University and later signed with the Tennessee Titans.

Marat Likhtenstein, 64, of New York, was charged on allegations that he stole $1.24 million from 10 investors in an alleged Ponzi scheme. He promised investors 20% returns from business opportunities that he could not explain to his investors. He was a licensed financial advisor and insurance agent at the time.

Ahmet Neidik, 65, of New Jersey, was sentenced to 18 months in prison for his role in a $50 million Ponzi run by John K Eckerd, Jr., 61, and Jason E. Adkins, 47. Neidik pleaded guilty in connection with the purported transportation, logistics, and importing/exporting business. Eckerd previously pleaded guilty, and Adkins was previously convicted and sentenced. The scheme defrauded 50 investors.

Alcides Roman, 66, of Missouri, pleaded guilty to charges that he ran a Ponzi scheme through Roman in Control LLC. The losses are approximately $2 million.

Thomas John Sfraga aka TJ Stone, 56, of New York, was sentenced to nearly 4 years in prison in connection with a $2 million Ponzi scheme run through Vandelay Contracting Corporation, a phony company modeled after an episode of Seinfeld.  

Kenny Dirk Van Der Spek aka Kenny Vanderspek, 35, a Belgium national of Utah, was charged in connection with an alleged $5 million Ponzi scheme that defrauded approximately 75 investors. Van Der Spek was the owner of K & K Strategies LLC, whose purpose was to teach about stock trading. He convinced people to invest in K & K, representing that is was a hedge fund. He spent at least $3 million on real estate purchases, a personal chef, investor payouts, and other personal expenses. 

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Regulators permanently revoked the license of Gregory Martel and his company, My Mortgage Auction Corp. aka Shop Your Own Mortgage, on account of the massive Ponzi scheme they ran.

India

Harsatinder Pal Singh Hayer, the son-in-law of the former Pearls Group chairman and managing director Nirmal Singh Bhangoo, was arrested. The case involves claims against PACL India Limited, PGF Limited.

Nigeria

Authorities have issued a warning about 58 companies allegedly running Ponzi schemes in the country.

South Korea

Authorities charged Mirae Asset Financial Services and PS Pine Service in connection with the PS Financial Ponzi scheme. Insurance planners were used to raise 111.3 billion won for 415 investors through PS Pine Service and 29.3 billion won from 350 investors through Mirae Asset Financial. They sold PS Financial products by claiming high returns if investors invested in “short-term bonds issued by corporations” or “lending company loan management products.”

February 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for February 2025. There were at least 7 new Ponzi schemes revealed this month, 10 guilty pleas, 1 conviction, and the average age of the fraudsters was about 48 years old. Two Ponzi schemers received enormous prison sentences of 45,376 years each. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Ivan Acevedo and Dane R. Roseman, of California, pleaded guilty to charges in connection with their role in the Woodbridge Group of Companies Ponzi scheme. They were accused of approving marketing materials and sales scripts, and upholding a false image of the company as a legitimate business. The scheme brought in $1.3 billion and affected 9,000 investors. 

Douver T. Braga, 48, a citizen of Brazil, was extradited from Switzerland to face charges in connection his bitcoin scheme run through Trade Coin Club. Braga brought in 82,000 bitcoin, valued at over $290 million at the time of investment. There was no trading activity, and Braga transferred at least $50 million in bitcoin to his own accounts. Braga pleaded not guilty to the charges.

Thurman P. Bryant, III, Bryant United Capital Funding, Inc., Arthur F. Wammel, and Wammel Group, LLC had final judgments entered against them in favor of the SEC in connection with a $22.7 million Ponzi scheme. The scheme promised guaranteed returns from investments in the mortgage industry.

Sylvein William Maximilian D’Habsburg XVII, 48, pleaded guilty to charges relating to a $5.9 million Ponzi scheme. He defrauded elderly church parishioners into his two companies, Wild Rabbit Technologies LLC and BAI Intelligence LLC. He claimed he had an artificial intelligence technology that could predict the future and detect a COVID-19 infection based solely on a video recording.

Joey Stanton Dodson, 55, of California, was charged in connection with a $15 million scheme that defrauded approximately 50 victims. Dodson ran the scheme through several related companies and partnerships, collectively known as Citadel Energy. Investors were promised returns from purported water-related services to oil and gas companies in North Dakota.

Wayne T. Essex, his wife Susan Essex, and their company Essex & Associates were sued on allegations that they were running a Ponzi scheme that defrauded at least 16 investors out of $4.2 million. Authorities obtained search warrants to investigate allegations of fraud in securities offerings. The Essex’s also used other entities to run the scheme such as Essex & Associates Inc., Salty Seas Siesta LLC, Opportunity Zone Investment Fund Inc., Fin Tech Group Inc., Trinity Accounting Services Inc., and Blue Sail Investments Inc.

Anthony Farrah, 36, of California, was sentenced to 6 months in prison in connection with his luxury watch scheme. Farrah described himself as the Timepiece Gentleman and would take possession of high-end watches to sell them on consignment. Farrah would keep the proceeds or use the watches as collateral for loans. Farrah would represent that the watches had not been sold, but would instead keep the proceeds for himself.

Michael J. French, 41, of South Carolina, pleaded guilty to charges that he was operating a $13 million Ponzi scheme through MJF Holdings LLC and MJF Capital, LLC. The scheme offered returns of 12% per year from supposed loans to small businesses and defrauded more than 400 investors. 

Shawn E. Good, 55, was sued by the SEC on allegations that he defrauded his investment clients while at Morgan Stanley by sending his clients’ funds to his personal account to supposedly make low-risk real estate development investments. He promised returns between 6% and 10%.

Min Woo “Kevin” Kang and his company, BKCoin, were accused by the SEC of running a scheme making Ponzi-like payments. The scheme raised $100 million.

Brent C. Kovar, 58, of Nevada, was indicted in a $24 million cryptocurrency Ponzi scheme through Profit Connect Wealth Services. He represented that the company was a profitable artificial intelligence company that mined cryptocurrency. He provided a 100% money back guarantee. He defrauded 400 investors and promised a fixed rate of return of 15% to 30%.

Todd H. Lahr, 60, of Pennsylvania, was sentenced to 3 years in prison and ordered to pay approximately $2.1 million in restitution in connection with a scheme that he ran through THL Holdings LLC and Ferran Global Holdings Inc. Lahr, a lawyer, sold THL investments in a securities fraud scheme. Investor losses are over $2.7 million. 

Thomas Paul Madden, 66, of Utah, was indicted on allegations that he ran a Ponzi scheme with Jeremy Tyler Grabow, 54, of California, who was also charged. The scheme was run through Cascade IR, LLC and Savitar Systems LLC. Madden  misrepresented to investors that he would sell them penny stocks and that they would make profits from a large casino and resort project in Mexico. The penny stock scheme defrauded over 200 investors out of more than $23 million, and the scheme run through Savitar brought in more than $2 million from at least 10 investors.

Matthew Mencarelli, 39, of Michigan, was sentenced to 8 years in prison in connection with a scheme that defrauded 15 victims out of approximately $1.6 million. He offered returns on investments in nonexistent fiber optic cable and other infrastructure projects. 

Royce Newcomb, 62, of California, pleaded guilty to charges that he stole $4.2 million in a scheme run through Strategic Innovations LLC. Newcomb was previously convicted in 2011 for running a real estate fraud scheme.

Joshua Nicholas, 30, pleaded guilty to charges relating to a $100 million cryptocurrency Ponzi scheme run through EmpiresX.

Sergei Potapenko, 40, and Ivan Turõgin, 40, pleaded guilty to charges that they were running a cryptocurrency Ponzi scheme in which customers could share in cryptocurrency mined by their purported mining service, HashFlare. HashFlare’s sales totaled more than $577 million. They have agreed to forfeit assets worth more than $400 million. 

Rashawn Russell was charged by the CFTC on allegations that he was running a $1.5 million cryptocurrency fraud that made Ponzi-like payments to investors. He promised returns as high as 25%.

Willard Timothy Sutton, 64, of North Carolina, pleaded guilty to charges that he was running a Ponzi scheme that defrauded more than 60 investors out of more than $8 million. Sutton operated the scheme through Greenville Auto World, LLC, a car dealership that enabled customers with poor or no credit history to finance the purchase of a vehicle.

Mina Tadrus pleaded guilty to charges that he ran a Ponzi scheme through Tadrus Capital LLC. Investments were promised from supposed AI-driven trading strategies for supposed guaranteed returns of at least 30% per year. The SEC had charged him in 2023.

Herbert Whalen, 50, or Indiana, was sentenced to 3 years and 5 months for his role in a real estate investment scheme run through Oceanpointe Property Management. Whalen created fake leases for vacant properties and many properties were not repaired or rehabilitated as promised. 

INTERNATIONAL PONZI SCHEME NEWS 

Turkey

Brothers Mehmet Aydin and Faith Aydin were sentenced to 45,376 years in prison in connection their Ponzi scheme run through Ciftlik Bank (Farm Bank). The scheme defrauded victims out of approximately $250 million. Some of the funds were transferred to Fame Game and then to the Aydins’ personal accounts. The scheme defrauded over 350,000 domestic Turkey investors and another 150,000 foreigners.

England

Richard Lester, 56, was sentenced to 5 years in prison in connection with a £400,000 scheme in which he sold fake cruises. The scheme was run through Cruise Direct UK from 2009 to 2014. Lester sold “cruise vouchers” and “cruise miles” which customers could redeem for discounted cruises.

India

Deepankar Barman received additional charges in connection with his alleged Ponzi scheme run through DB Stock Consultancy.

Ananthu Krishnan, 28, was arrested on allegations that he was running a Ponzi scheme marketed as a Corporate Social Responsibility initiative. The scheme is believed to have defrauded 30,000 to 40,000 victims.

Pavan Kumar Odela, Vice President of Capital Protection Force Pvt Ltd and of Falcon Invoice Discounting Platform, and Kavya Nalluri, Director of Capital Protection Force Pvt Ltd and Falcon Capital Ventures Pvt Ltd. were arrested in connection with an alleged Ponzi scheme that involved invoice discounting. Amardeep Kumar, along with Aryan Singh and Yogender Singh, orchestrated the scheme. The scheme promised returns of 11% to 22% per year.

Inderjeet Singh, 55, was arrested for luring investors into a Ponzi scheme that defrauded at least 65 victims.

Dhanajaya Sahoo was arrested in connection with the scheme run thought Mutual Alliance Global Pvt Ltd. The scheme defrauded approximately 200 people. Sahoo represented that investors could double their money within 10 months.

Nigeria

Uno Michael Eke, the CEO of Micheno Multi-purpose Cooperative Society, was convicted and sentenced in connection with the N2 billion scheme. Eke promised 80% returns in 40 days.

Norway

Authorities charged four individuals for their role in a Ponzi scheme that collected over $87 million. The scheme was a multi-level marketing program where investors could buy product packages containing cryptocurrency and company shares. They were promised returns from gas fields, mining, and real estate. They also promised high returns from cryptocurrencies such as OctaCoin, NanoCoin, and Ormeus Coin, through investments in projects called Crypto888 Club, Octa Partners, and Nano Club.

January 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for January 2025. There were at least 5 new Ponzi schemes revealed this month, 3 guilty pleas, and 2 convictions. Ponzi schemers received more than 66 years of prison sentences this month and 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. 

Henry Abdo, 47, of Florida, pleaded guilty to charges relating to a $6 million Ponzi scheme run through Titanium Capital LLC. Abdo claimed the investment was zero-risk and generated profits from fees on foreign currency transactions. The scheme defrauded over 200 investors and promised a return of 15%.

Seth Adam Despiano aka Marcus Lazaro and Steven Baron Sr., 43, who is already in prison for running $24 million Ponzi scheme and is serving a nearly 13-year prison sentence, has been indicted for allegedly running more fraudulent schemes from prison. Despiano is accused of posing as a broker from his prison cell and using fake identities to market and sell property that did not exist. 

Natalie Cochran, 44, was found guilty of murdering her husband, Michael Cochran, while she was running a Ponzi scheme. Natalie defrauded investors, including Michael’s parents, out of millions of dollars. She pleaded guilty in 2021 and was sentenced to 135 months in prison. Prosecutions alleged that she poisoned her husband with insulin so he would not find out about the $2 million scheme she was running.

John K. Eckerd, Jr., 60, of Texas pleaded guilty to charges relating to a $14 million scheme involving the sale of tires. Jason E. Adkins, 47, was previously convicted and sentenced in connection with the scheme.

Travis Ford, 35, of Oklahoma, pleaded guilty to charges in connection with a cryptocurrency scheme run through Wolf Capital Crypto Trading LLC. Ford promised returns of 1-2% per day, or approximately 547% per year. A total of $9.4 million was raised from approximately 2,800 investors. 

Cedric Dewayne Griffin was arrested in connection with an alleged Ponzi scheme that defrauded 103 victims out of approximately $5.9 million. The scheme was run through G8 Equity and G8 RE Capital for about two years. The SEC had previously filed an action against him for running the real estate scheme that targeted the African-American community.

Alan J. Hanke, 60, had his sentencing delayed due to health issues. Hanke ran an $8 million Ponzi scheme.

Antonia Perez Hernandez, 49, was sentenced to 2½ years in prison for her role in promoting the $14 million Ponzi scheme run through Forcount. The cryptocurrency scheme defrauded fellow Latinos for over three years and was run with Francisley da Silva, known as the bitcoin “sheik.” Juan Tacuri was sentenced to 20 years in prison last year.

Peter P.D. Leach, 63, a former Rhode Island personal injury attorney, was sentenced to 2 years and 9 months in connection with a Ponzi scheme he ran through his attorney IOLTA account. He forged client signatures and deposited client settlement checks into his account, promising clients he would pay their medical expenses and other bills. 

John Lopez, 71, of Arizona, was found guilty in September 2024 of running a Ponzi scheme that received $21.4 million and involved the sale of precious metals. U.S. Marshals began selling bars and coins of gold and silver.

Murray Todd Petersen, 73, of California, was convicted on charges relating to an $850,000 diamond Ponzi scheme he ran through Petersen & Lowe LLC. Petersen sold overpriced diamonds with fraudulent appraisals and told investors to wait one to two years before trying to sell them. He promoted a fake China investment program guaranteeing 5% to 8% returns to cover investor demands for cash-outs at inflated appraisal prices.

Robert F. Rothluebbers, 68, of Missouri, was sentenced to 14 months in prison and ordered to pay $287,000 in restitution in connection with a scheme that involved the supposed purchase and sale of R-22 refrigerant in bulk. Rothluebbers promised 50% profits to investors. 

Allen Stanford was ordered to pay a $5.9 billion civil fine in connection with the massive Ponzi scheme he ran through Stanford Financial Group. Former CFO James Davis was ordered to pay $17.66 million, and former chief accounting officer Gilberto Lopez was ordered to pay $3.42 million for their roles in the scheme. Stanford had sold fraudulent high-yielding certificates of deposit through his Antigua-based Stanford International Bank.

Joel Wilson, 31, was arrested in Germany in connection with an alleged Ponzi scheme that he ran in Michigan.

INTERNATIONAL PONZI SCHEME NEWS 

India

Indian cricketers Shubman Gill, Sai Sudharsan, Rahul Tewatia, and Mohit Sharma were accused in connection with a ₹ 450 crore Ponzi scheme run by in Bhupendrasinh Zala, who was arrested. The scheme was run through BZ Financial Services of Zala.

Sarvesh Surve and Victoria Kowlenko, Taufiq Riya aka John Carter, Tanya Kastova and Valentina Kumar were arrested in connection with an alleged scheme run through Platinum Hern Pvt Ltd. The firm operated under the name Torres Jewellers Company. Investors were promised high returns, including 48% annually on gold, 96% on silver, and 520% on moissanite. Two Ukrainian nationals, Artem and Olena Stoin, have been identified as the masterminds behind the Torres Jewellery Ponzi scheme. Abhishek Gupta, 54, an accountant who audited the books has also been arrested and is accused of facilitating transfers of funds. Platinum CEO Tausif Riyaz was also arrested

Hariprasad Venugopal, 44, and Pranav Raorane, 43, were arrested on allegations that they defrauded approximately 3,000 investors through four different firms, Moneyedge Investment, Moneyedge Fincorp, Moneyedge Realtors, and Moneyedge Capital. The scheme promised 24% annual returns.

Jawahar Lal Shah was arrested on charges that he was involved in a Ponzi scheme run through Mahua Joint Liability Group Dairy Products and Agro Industries Ltd, Mahua Joint Liability Group Development Cooperative Society Ltd, and Mahua Gavy Prasankaran Swavlambi Sahkari Samiti Limited.

Vietnam

Tran Minh Quan, 41, Nguyen Trung Nam, 42, Luong Hoia Nam, 39, and Nguyen Xuan Toan, 32, were arrested on allegations they were running a scheme through BITNINER. The scheme involved cryptocurrency and mining packages and defrauded more than 200 investors out of almost 4 billion VND.

December 2024 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for December 2024. There were at least 12 new Ponzi schemes revealed this month, 3 guilty pleas, and 1 conviction. Ponzi schemers received more than 102 years of prison sentences this month and the average age of the fraudsters was about 47 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Mathias Bama, Valentine Bama, and Hilaire Leunkam, of Maryland, and their investment firm were fined $17.2 million and banned from offering investment or security services in connection with a Ponzi run through Prosperity Partners Inc. and Prosperity Medical and Health LLC. They promised a return of 6% per month, or an annual return of 72%. Approximately $28.9 million was brought into the scheme and investors received just under $12.4 million in payments on their investments.

Brent Barber, 45, of California, was sentenced to 15 years and one month in prison for his role in a $13.8 million Ponzi scheme run through BNZ Capital One. The scheme promised returns of up to 10% through real estate. Another owner of BNZ Capital, Louis Zimmerle, 65, pleaded guilty.

David Brend, 50, of Florida, was sentenced to 10 years in prison for his role in promoting the $58 million IcomTech Ponzi scheme. Brend’s co-defendant, Gustavo Rodriguez, 48, of California, was sentenced to 8 years in prison in connection with the cryptocurrency scheme. IcomTech was launched in 2018 by David Carmona.

Paul Burks had his 14 year and 10-month sentence commuted by President Biden. Burks was the owner of Rex Venture Group, LLC through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards.

Brian Callahan had his 12-year sentence commuted by President Biden. Callahan had run a $96 million Ponzi through Distinctive Ventures, involving the Panoramic View Resort in Montauk. Callahan had pleaded guilty to the scheme that raised more than $118 million from at least 40 investors.

Angela Dawn, 42, pleaded guilty to charges relating to a Ponzi scheme that defrauded more than two dozen people out of more than $1.5 million. Dawn promised she could double or triple investments through the stock market and her day-trading business.

Frederick Tayton Dencer aka Tayt Dencer, his son Luke Abelard Dencer, and their companies, Standard Holdings, Inc. and Standard Huaxia Ltd., of California, were charged with running a Ponzi scheme that raised over $17 million from at least 40 investors. They allegedly sold investors stock that did not exist and made Ponzi-like payments to investors. Dennis Edward Butler, 47, of New Jersey, was also charged for acting as an unregistered broker in connection with the scheme.

Marc Dreier had his 20-year sentence commuted by President Biden. Dreier had pleaded guilty to allegations that he, through his law firm, Dreier LLP, sold fraudulent promissory notes that caused approximately $400 million in losses.

Gordon Driver, 67, had his 14-year sentence commuted by President Biden. Driver had promised 1% to 5% returns per week from a supposed commodity futures trading program that involved E-mini S&P 500 futures contracts. Driver solicited investments through Axcess Automation LLC.

John K. Eckerd Jr., 60, of Ohio, pleaded guilty to his role in a Ponzi scheme involving off-the-road tires that defrauded investors out of $50 million. Eckerd worked with Jason E. Adkins, 47, who was previously convicted and sentenced in connection with the scheme. They promised returns from the buying and selling of large, specialized tires used in mining and earth-moving equipment. 

Sylvein William Maximilian D’Habsburg XVII aka Sylvein Scalleone, 48, a Californian who pretended to be a European nobility, pleaded guilty to allegations that he ran a Ponzi scheme through Wild Rabbit Technologies LLC and BAI Intelligence LLC. D’Habsburg brought in about $6 million in investors, representing that they were investing in artificial intelligence technology that could predict the future and detect a COVID-19 infection using only a video recording. The scheme targeted elderly Filipino churchgoers.

James Nathan Fry, 70, had his 17.5-year sentence commuted by President Biden. Fry was a fundraiser for Thomas Petters and Petters Company Inc. Fry used two hedge funds known as the Arrowhead Funds, to raise funds for the scheme. He received more than $30 million in fees.

Johanna Michely Garcia, 41, of Florida, was sentenced to 20 years in prison in connection with the Ponzi scheme run through MJ Capital Funding, LLC. The scheme involved approximately $190,700,000. The scheme involved merchant cash advances, a type of short-terms financing used by small businesses. After MJ Capital was shut down, Garcia and Ruiz Hernandez began operating a new Ponzi scheme through New Beginning Global Funding LLC, New Beginning Capital Funding LLC, Lion Heart Capital Group L.L.C., GMR Remodeling LLC, and Group Management LLC.

Graeme Gary Hearn, Michael Holloway and Eric Ture Muhammad, and their company Trage Technologies Limited, of Georgia, were sued in connection with an alleged Ponzi-like cryptocurrency scheme. They promised profits of $120 per day and annual returns of $43,800 on a $10,000 investment. Trage Technologies is registered in the Marshall Islands and transferred more than $79 million of the investment funds to external accounts. 

Benny Lee Judah, 64, had his 25-year sentence commuted by President Biden. Judah ran a $50 million Ponzi scheme. Judah ran the scheme through Excel Lease Fund, selling Excel debentures.

Andrew Mackey had his 27-year sentence commuted by President Biden. Mackey was convicted in connection with a $12 million Ponzi scheme that he ran with his common law wife, Inger L. Jensen. Jensen’s 14-year sentence does not appear to have been commuted.

Gary Lynn McDuff, 69, had his 25-year sentence commuted by President Biden. McDuff ran the scheme with Gary Lancaster through Lancorp Investment Fund, which they represented would invest in A+ or A1 rated bonds. 

Timothy M. McGinn, 76, had his 15-year sentence received in 2013 commuted by President Biden. McGinn had been convicted along with David L. Smith, 79, of running a Ponzi scheme through McGinn, Smith & Co. The scheme caused $130 million in losses.

Gregory McKnight, 64, had his 15½-year sentence commuted by President Biden. McKnight has been convicted of orchestrating a $72 million Ponzi scheme and was sentenced in 2013. The Ponzi scheme ran from 2005 to 2007 and involved more than 1,800 victims who lost almost $50 million.

David McQueen, 44, was sentenced to 30 years in prison in connection with a $46.5 million Ponzi scheme. McQueen’s business partner, Trent Francke, had pleaded guilty and was sentenced to 7 years in prison.

Nurnepes Nurjanov, 34, of Texas, was sentenced to 3 years and 5 months and ordered to pay $1,505,500 in restitution in connection with a Ponzi scheme that defrauded investors out of more than $1.5 million. Nurjanov promised returns from stock trades.

Ruiz Ochoa was ordered to pay $3.5 million in restitution in the CFTC action against him in connection with the IcomTech cryptocurrency Ponzi scheme. Ochoa is serving a 5-year prison sentence for his role in the scheme that defrauded 190 individuals. David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend have also been found liable in connection with the scheme.

Francier Obando Pinillo was sued by the CFTC on allegations that Pinillo, a former pastor for a Spanish-speaking church, ran a Bitcoin Ponzi scheme. The scheme raised more than $5.9 million from over 1,500 investors, promising returns of 34.9% per month. Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments, which he said had developed a “Solano ecosystem” in which he traded Bitcoin. The CFTC alleged there was no automated computer trading program.

Richard Dow Rockwell and Dow Rockwell LLC had consent judgments entered against them, finding that they failed to disclose compensation they received in connection the scheme run through Professional Financial Investors, Inc. PFI ran a $35 million Ponzi scheme.

Nevin Shapiro, 55, had his 20-year sentence commuted by President Biden. Shapiro ran a $930 million Ponzi scheme through Capitol Investments USA. He claimed he would purchase wholesale groceries and sell them upmarket. 

Duane Hamblin Slade, 53, had his 15-year sentence commuted by President Biden. Slade ran a $166 million Ponzi scheme along with Guy Andrew Williams and Brent F. Williams.

Frank Vennes Jr., 67, had his 15-year sentence commuted by President Biden. Vennes raised funds for the Petters Company, Inc. through his company Metro Gem and Arrowhead Capital Partners II, L.P. and Arrowhead Capital Finance, Ltd.

Ronnie Gene Wilson had his 20-year sentence commuted by President Biden. Wilson defrauded more than 700 investors out of at least $57.4 million through his company, Atlantic Bullion & Coin. 

Trent Witteveen was sentenced to 3 years and 5 months in prison and ordered to pay more than $800,000 in restitution in connection with a Ponzi scheme run through Titan Timber that defrauded investors out of more than $2 million.

INTERNATIONAL PONZI SCHEME NEWS 

Argentina

Seven people were arrested who were linked to the RainbowEx Ponzi scheme. It is estimated that 12,000 to 20,000 people lost money in the scheme. The scheme involved cryptocurrency and promised returns between 1% and 2% per day, or 3,500% per year. Maximiliano Braga, Alexis Pan, and Luis Pardo were the principals of the scheme.

Australia

David Sipina was sentenced to three years in prison in connection with the Courtenay House Ponzi scheme. Spinina recruited 215 investors and made $3.9 million in commissions in the scheme that raised $180 million from 585 investors. Courtenay House promised returns from trading in foreign exchange and futures commodities. Tony Iervasi was previously sentenced to 11 years, and Athan Papoulias was sentenced to two years in connection with the scheme.

England

London Capital & Finance was found to have been operated as a Ponzi scheme. A court found that Michael Thomson, Spencer Golding, John Russell-Murphy, Paul Careless, and Robert Sedgwick knowingly participated in the fraud. The scheme promised high interest rates on mini-bonds and caused about 11,600 investors losses of more than £237 million. Investors were promised 8% returns.

Richard Lester, 56, was convicted in connection with a £400,000 Ponzi-style scheme called Cruisemiles that sold miles through agents that were exchanged for cruises at discounted prices, but no cruises were booked. 

India

Basudeb Bagchi, the founder of the Prayag Group, was arrested along with his son Avik.

Amber Dalal, the principal of Ritz Consultancy Services, was arrested in connection with an alleged Ponzi scheme that defrauded approximately 1,300 investors out of more than Rs 600 crore.

Hemen Rava, Sankar Saha, and M/s Upepithets Holdings Pvt. Ltd., were charged in connection with the Assam Ponzi scheme, promising guaranteed monthly returns of 6%. Jiten Deka, Indrani Das, Azara Branch, Sanjib Deka, Himangshu Talukdar, and Brahmaputra Sanchay and Biniyog Cooperative Society Ltd were also charged in connection with the Grihalaskshmi scheme that promised 15% returns.

Bhupendrasinh Zala was arrested on allegations that he was running a Ponzi scheme through BZ Financial Services. He allegedly collected Rs 450 crore from 11,000 investors and promised returns of 30% to 35%.

Four people were arrested on allegations that they were operating a Ponzi scheme through Crypto Miner-HNT (Helium Crypto Token) through a mobile app called SHAREHASH. 

Several individuals have been arrested and are under investigation in connection with the scheme known as Niaz Alam aka Kabir.

Indonesia

Hector Aldwin Liao Pantollana was turned over to Philippine authorities following charges that he defrauded thousands of people out of $68 million in a casino-related scheme. Pantollana promised high returns for investing in the casino-junket industry, which recruits high rollers to gamble.

Singapore

Kenneth Kam Boon Hee, 57, was sentenced to 10 years in jail for running a S$5 million Ponzi scheme. Kam was the director of Kenn Capital, Kenn Organisation International, and Kenneth Kam Pte Ltd, and held himself out as a successful foreign exchange trader. He promised monthly interest of 3%.

Thailand

Three individuals were sentenced to 49,125 years each in connection with the Forex-3D Ponzi scheme. Chatchai “Sue” Khotchathin, Theeraphassakorn “Mark” Kimwangtako, and Suranart Nakmusik were found guilty for their roles in the Ponzi scheme run by Apirak Kothi. Their prison sentences are limited to 20 years. 

Turkey

Hakan Ates, the CEO of Denizbank, and Mehmet Aydogdu, were indicted in connection with an alleged $44 million Ponzi scheme that defrauded dozens of investors. Secil Erzan was imprisoned last year. The scheme promised 250% interest in what was described as a secretive fund owned by the bank.

Vietnam

Nguyen Quang Hoang, 36, CEO of GFDI, was arrested in connection with an alleged Ponzi scheme that defrauded 7,000 investors out of VND3.7 trillion ($146 million). Tran Thi My Hanh was also arrested.

November 2024 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for November 2024. There were at least 8 new Ponzi schemes revealed this month, 3 guilty pleas, and 1 conviction. Ponzi schemers received more than 39 years of prison sentences this month and 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. 

Steven Andiloro, 53, of North Carolina, pleaded guilty to charges that he engaged in Ponzi-like activity through his car service business and a marijuana dispensary business. He brought in more than $2.6 million and used Paycheck Protection Program COVID relief funds as part of the scheme.

Mathias Bama, Valentine Bama, and Hilaire Leunkam and their businesses, Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC, of Maryland, were fined $17.2 million and permanently banned in connection with a $29 million Ponzi scheme that defrauded over 585 investors. The scheme promised a 6% monthly return for 12 months, equaling a 72% annual return, and targeted Cameroonian and Nigerian communities.

Vania Bell, who is currently serving a 6 year and 8-month sentence for running a Ponzi scheme along with her father, Hector May, 83, through Executive Compensation Planners Inc., was ordered to pay $31.6 million in restitution to victims. Hector May is serving a 13-year sentence.

Efrain Betancourt, Jr., 36, a Columbian national, was charged in Florida in connection with an alleged payday loan Ponzi scheme run through Sky Group USA, LLC. Betancourt promised returns of 24% to 120% and brought in $66 million from over 600 investors. Some investors were paid back, but there is still $39 million owed.

William V. Conn Jr. was hit with a judgment of more than $854,000 in connection with his role in John Wood’s Ponzi scheme run through Horizon Private Equity III LLC and Southport Capital. Conn was accused of running his own $2 million fund and putting his name on Woods’ funds as their straw manager.

Joseph Giuttari, of Rhode Island, pleaded guilty to charges that he ran a Ponzi scheme through Hybrid Capital Group, LLC, THE FENS CO., LLC, and Realty Funding Advisors, LLC, among others, and that he misappropriated more than $1.5 million. Giuttari used investor funds to make short term mortgages. The total amount of the loss is believed to be between $3,500,000 and $9,500,000.

Arsen Lusher, 49, of New Jersey, was arrested on allegations that he was running a Ponzi scheme through his trucking company that defrauded more than 20 investors out of more than $5 million. Lusher represented that he had a profitable trucking business that had delivery and installation contracts with multiple large retailers. Victims were promised 30% to 40% returns over one or two years. Lusher did not use the funds as represented to buy new trucks or grow the trucking business.

Matthew Mencarelli, 38, of Michigan, pleaded guilty to charges relating to a Ponzi scheme that defrauded more than a dozen victims out of approximately $1.7 million. He represented that he had lucrative contracts with state and local governments to install fiber optic or other infrastructure.

Debra Lynn Mercer-Erwin, 61, was sentenced to 16 years in prison in connection with a $550 million Ponzi scheme involving 100 fake airplane sales and smuggling tons of cocaine. Mercer-Erwin provided U.S.-registered private planes to drug cartels and traffickers through her company, Aircraft Guaranty Corp., and also used another company, Wright Brothers Aircraft Title. She would transfer plane ownership using fake information when confronted by law enforcement. Co-defendant Frederico Machado is currently a fugitive in Argentina. 

Jennifer Iturraide Pina, 43, the wife of Cesar Humberto Pina, was charged with destruction of records when evidence revealed that she destroyed a cell phone while federal agents were at her door with a search warrant. Cesar Pina has been charged in connection with an alleged Ponzi scheme run with RaaShaun Casey, or DJ Envy.

Gustavo Rodriguez, 48, or California, was sentenced to 8 years in prison for his role in the IcomTech cryptocurrency Ponzi scheme. Rodriguez created and maintained the back-office system and website for the scheme. The IcomTech scheme founded by David Carmona, who was recently sentenced to 10 years, brought in about $58 million. Marco Ruiz-Ochoa was sentenced to 5 years in prison earlier this year. David Brend, 49, was convicted earlier this year.

Kris Roglieri, 44, was sued in a civil forfeiture action seeking control of his expansive sports car and watch collection. The lawsuit alleges that Roglieri ran a Ponzi scheme through Prime Capital Ventures, purporting to make large construction loans to businesses. 

Thomas Nicholas Salzano aka Nicholas Salzano, 66, of New Jersey, was sentenced to 12 years in prison in connection with the scheme run through National Realty Investment Advisors LLC. The scheme defrauded more than 2,000 investors in a $658 million Ponzi scheme. From 2018 to 2022, Salzano lured money into a real estate fund operated by NRIA, NRIA Partners Portfolio Fund I LLC. Roy Grabato, NRIA’s chief executive, was also charged but is a fugitive believed to be in the Philippines.

Michael Saquella, of Arizona, along with his companies Best Image I, LLC and Cactus Blue Entertainment, LLC, were ordered to pay about $1 million in restitution and penalties in connection with a Ponzi-like scheme that involved investments in various film and tv projects. Saquella had previously been the subject of a cease-and-desist order in 1978, and had pleaded guilty to other charges in 2007 stemming from promises to investors that “their investment would ‘probably’ make an 800% return within six to 18 months.” 

Sanjay Singh, 45, of Florida, was convicted in connection with a $100 million Ponzi scheme run through Royal Bengal Logistics. Singh raised approximately $112 million from investors and was previously charged by the SEC in a scheme that promised guaranteed returns of 12.5% to 325% from the purchase of contracts for trucking services. The scheme targeted the Haitian-American community. In 2023, the SEC also filed suit against Brisly Guillaume, 39, and Ricardi Celicourt, 40, alleging that they were unregistered brokers acting on behalf of RBL.

Dusan Varga and his firm Pannon Investment Advisors, of Florida, were sued by the SEC on allegations that they raised approximately $1.6 million from at least 20 investors in a scheme that targeted Serbian investors. 

Aaron A. Wagner, 42, of Utah, and his business partner, Michael Mains, 46, were arrested on allegations that they were running a Ponzi-like scheme. They ran the scheme by directing lenders and investors to send funds to entities they controlled - Wagscap Food Services, LLC, Hello Sugar, Dirty Bird, Everbowl, Crumbl Cookies, Las Botellas, and others.  Wagner is a millionaire restaurant entrepreneur who allegedly defrauded investors out of funds that he used for his personal gain. Instead of using the funds for restaurants and other businesses as promised, he used the funds for a home, real estate, and an $8 million private airplane. 

Trent William Witteveen, 40, of Michigan, was sentenced at 3 years and 5 months and ordered to pay approximately $844,000 in restitution in connection with a timber harvesting Ponzi scheme known as Titans Timber LLC. Investors were promised returns from investments supposed timber harvesting rights from landowners. Witteveen brought in more than $2 million and used some of that money for his personal expenses.

INTERNATIONAL PONZI SCHEME NEWS 

England

London Capital & Finance was found to have been operated as a Ponzi scheme. A court found that Michael Thomson, Spencer Golding, John Russell-Murphy, Paul Careless, and Robert Sedgwick knowingly participated in the fraud. The scheme promised high interest rates on mini-bonds and caused about 11,600 investors losses of more than £237 million. Investors were promised 8% returns.

India

Basudeb Bagchi, the founder of the Prayag Group, was arrested along with his son Avik.

Amber Dalal, the principal of Ritz Consultancy Services, was arrested in connection with an alleged Ponzi scheme that defrauded approximately 1,300 investors out of more than Rs 600 crore.

Indonesia

Hector Aldwin Liao Pantollana was turned over the Philippine authorities following charges that he defrauded thousands of people out of $68 million in a casino-related scheme. Pantollana promised high returns for investing in the casino-junket industry, which recruits high rollers to gamble.

Turkey

Hakan Ates, the CEO of Denizbank, and Mehmet Aydogdu, were indicted in connection with an alleged $44 million Ponzi scheme that defrauded dozens of investors. Secil Erzan was imprisoned last year. The scheme promised 250% interest in what was described as a secretive fund owned by the bank.

Vietnam

Nguyen Quang Hoang, 36, CEO of GFDI, was arrested in connection with an alleged Ponzi scheme that defrauded 7,000 investors out of VND3.7 trillion ($146 million). Tran Thi My Hanh was also arrested.

October 2024 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for October 2024. There were at least 9 new Ponzi schemes revealed this month and 4 guilty pleas. Ponzi schemers received more than 86 years of prison sentences this month and 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. 

William Berg, 52, was sentenced to 9 years in prison after pleading guilty to defrauding investors out of more than $2 million. Berg was a financial advisor who sold life insurance and other financial products. He solicited investments from at least 17 clients to invest in two shell companies he secretly owned.

Russell Todd Burkhalter, 52, denied all wrongdoing by him and his company, Drive Planning LLC, in response to SEC allegations that they were running a Ponzi scheme that involved $300,000,000. The SEC alleged that Drive Planning promised to place investor funds into land development deals that generated 10% returns every three months. Funds were instead misappropriated by Burkhalter to buy a condo in Mexico, a yacht, and private jet trips, among other lavish items.

David Carmona, 41, of New York was sentenced to 10 years and 1 month in prison in connection with his $8.4 million cryptocurrency Ponzi scheme run through IcomTech. He promised investors they would double their investment in 6 months from investors in cryptocurrency trading and mining. Marco Ruiz Ochoa was sentenced to 5 years in prison earlier this year after pleading guilty to one count in connection with the scheme. Juan Arellano has also pleaded guilty and is awaiting sentencing.

Nayeem Choudhury, 28, of Texas, was sentenced to 5 years and 3 months in prison and ordered to pay more than $6.1 million in connection with a scheme he ran through Dream Venture Capital Group LLC while a resident of North Carolina. Choudhury promised monthly returns as high as 25% from trading and defrauded at least 88 victims. Choudhury lost over $5 million in investor funds and used other funds for extravagant purchases.

Lawrence Coven, 61, of New Jersey, pleaded guilty to charges that he ran a $1 million Ponzi-like scheme through Sunrise Enterprises LLC, which purported to provide financial services to investors. Coven represented he would invest his victims’ funds through Sunrise to provide short-term loans to borrowers, and he guaranteed returns of between 10% and 15%, representing that the investments were risk-free.

Michael B. DePetrillo, a former New Orleans-based attorney, was sued by the CFTC on allegations that DePetrillo and his companies, NOLA FX Capital Management LLC and Meteor LLC were operating a Ponzi scheme. The CFTC alleged that DePetrillo collected $7.6 million from 40 investors and promised returns from trading for foreign currency exchanges. He was criminally charged last month, and those charges included additional allegations that he collected a total of $9.2 million from over 50 investors for investment in gold futures in addition to foreign exchange.

Maria Dulce Pino Dickerson was arrested in connection with a scheme that she ran through Creative Legal Services that targeted the Filipino community. She is alleged to have defrauded more than 140 people who invested more than $10 million and lost more than $4 million. 

Richardo Javier Guerra Farias and Francisco Javier Malave Hernandez, of Florida, consented to judgment with the SEC in connection with a scheme the SEC alleged was a $3.2 million Ponzi-like scheme that defrauded Venezuelan-Americans. They and their companies, Toller Stern Financial fka AEG Logistics and Toller Asset will pay $1.29 million. The scheme promised annual returns of up to 72%.

Karina Fernandez, Leonela Duarte, Bryan Guayara, Marco Rosas, and Erick Ruiz, of Florida, were sued by the SEC in connection with their roles in the MJ Capital Funding Ponzi scheme. The scheme was run by Johanna Garcia and defrauded investors out of $196 million, promising investors a 10% return per month. The scheme promised returns from purported short term, high interest loans to businesses.

Joseph Giuttari pleaded guilty to charges that he misappropriated more than $1.5 million in a Ponzi scheme run through Hybrid Capital Group, LLC, The Fens Co., LLC, and Realty Funding Advisors, LLC.

Jesse W. Harris, 36, was sentenced to 2½ years in connection with the scheme run through Harris Custom Projects LLC. Harris had previously pleaded guilty to securities fraud.

iCap Equity was found to have been operated as a Ponzi scheme by a bankruptcy court. iCap defrauded 1,800 real estate investors who invested $230 million into the firm. The scheme was formerly run by Chris Christensen, who previously disputed that iCap operated as a Ponzi scheme.

Luke M. Johnson, of Arizona, had his investment advisor license revoked and he had his company, Legend Capital Group, Inc., were ordered to pay over $229,000 in restitution in connection with an alleged Ponzi scheme run through GPB Capital. David Gentile was convicted in connection with the scheme earlier this year.

David Kagel, 86, of California, was sentenced to 5 years’ probation and ordered to pay almost $14 million after pleading guilty to running a $15 million cryptocurrency Ponzi scheme. The scheme guaranteed profits of 20% to 100% within 30 days. Kagel’s law license was revoked in 2023. His alleged co-conspirators, David Gilbert Saffron and Vincent Anthony Mazzotta Jr., pleaded not guilty. They promoted the investment scheme through Bitcoin Wealth Management, Cloud9 Capital, Circle Society, Omicron Trust, and Mind Capital.

Evan Frederick Light, 21, of Indiana, pleaded guilty to charges that he stole almost $38 million in cryptocurrency from almost 600 victims. Light stole customer personal identifiable information during a cyber-intrusion and then stole cryptocurrency worth over $37 million. 

John Lopez, 73, was found guilty of charges relating to his operation of a Ponzi scheme that targeted victims in New Mexico. The scheme was run through Personal Money Management Co. and brought in approximately $19.4 million. Lopez represented that he had an advanced investment algorithm and that he had invested funds in stocks and bonds, but he actually bought $13.3 million worth of gold and silver.

Arsen Lusher, 49, was arrested on charges that he defrauded at least 20 victims out of approximately $5 million in an alleged Ponzi scheme. He represented that he had a profitable trucking business that had delivery and installation contracts with multiple large retailers. Investors were promised returns of between 30% and 40% over one or two years. Lusher raised more than $40 million.

Frank Mercado, 27, of North Carolina, was sentenced to 3 years and 5 months and ordered to pay over $709,000 in restitution in connection with a Ponzi-style scheme that defrauded over 100 people out of more than $700,000. He ran the scheme through Tiger-Wolf Capital and promised returns from options trading and similar investments.

Babu Ramaraj, 47, was sentenced to 7 years in prison and ordered to pay more than $15 million in restitution in connection with a Ponzi scheme run through DAB Inspection and Consulting Services, a small home contractor doing patio and deck projects. The scheme caused more than $15 million in losses from the $40 million that he took in.

Joseph Safranko aka Ted Safranko, David William Negus-Romvari, and their company, Traders Domain FX Ltd dba Traders Domain, were charged by the CFTC in a civil enforcement action, along with Ares Global Ltd. dba Trubluefx, a Saint Lucia company, Algo Capital LLC, Algo FX Capital LLC, Algo FX Capital Advisor LLC nka Quant5 Advisor LLC, Robert Collazo Jr., Juan Jose Herman aka JJ Herman, John Fortini, Stephen Likos, Michael Shannon Sims, Holton Buggs Jr., Centurion Capital Group Inc., Alejandro Santiestaban aka Alex Santi, Gabriel Beltran, and Archie Rice. The CFTC alleges that the defendants defrauded more than 2,000 customers who invested more than $283 million. 

Lisa Schiff, of New York pleaded guilty to running a scheme that defrauded her clients out of $6.5 million. Schiff was a high-profile art advisor and abruptly shut down her business, SFA Advisory, last year when accused of running a Ponzi scheme. Schiff diverted client funds from the sale of the art or payments they made to purchase art and instead pocketed the money.

Ross Schlomann, 45, of Wisconsin, was sentenced to 5 years in prison and ordered to pay $2.1 million in restitution in connection with a scheme in the construction industry.

Juan Tacuri, 46, of Florida, was sentenced to 20 years in prison and ordered to pay more than $3.6 million in restitution in connection with the cryptocurrency Ponzi scheme known as Forcount and later as Weltsys. The scheme targeted Spanish speaking victims around the world and promised guaranteed returns on investments and the doubling of those investments withing 6 months. Victims were defrauded out of $8.4 million and were unable to withdraw money from their online portal accounts. Forcount continued to promote the fraudulent scheme by offering proprietary cryptotokens known as Mindexcoin. Tacuri had pleaded guilty earlier this year. Francisley Da Silva and Antonia Perez Hernandez were charged alongside Tacuri in 2022.

Dusan Varga and Pannon Investment Advisors LLC, of Florida, were charged by the SEC on allegations that they operated a $1.6 million Ponzi scheme that targeted the Serbian-American community. They scheme raised funds from at least 20 investors to invest in the Pannon Risk-Managed Income Fund.

INTERNATIONAL PONZI SCHEME NEWS 

Austria

Five co-conspirators were sentenced in connection with a $16 million cryptocurrency and real estate Ponzi scheme. They received sentences of 5 years, 30 months and 21 months suspended. They used plastic bags to transport cash, hid money in shoeboxes and used crypto platforms, making it difficult to trace the money. The scheme defrauded 40,000 victims and is one of Austria’s largest fraud cases to date. 

Czechia

Ondřej Janata is being prosecuted for an alleged Ponzi scheme that is believed to have harmed investors in the amount of 1.5 billion crowns. The scheme was run through Growing Way, which promised high returns from an alternative investment fund.

Nigeria 

Favour Ekoh was arrested in connection with an alleged N700 million Ponzi scheme. Ekoh anchors a program on Urban Radio and is accused of luring investors into a Ponzi scheme. Investors were invited to invest into a scheme called Life Trading under Leverage Index Limited, where she promised 10% returns. The station’s managing director, Bamikole Owoyomi, was also arrested. 

South Africa

Ben La Grange was sentenced to 10 years in prison in connection with a scheme run through Steinhoff International Holdings. La Grange pleaded guilty to charges of fraud involving $21 million.

Michael Haldane and Mauro Forlin were barred from the financial services section for 30 years due to their involvement in the BHI Trust Ponzi scheme. The BHI Trust scheme was orchestrated by Craig Warriner and involved approximately $166 million.

Kabelo Gwamanda, the former mayor of Johannesburg, was arrested on allegations that he was running a Ponzi scheme 10 years before he was involved in politics.

Louis Liebenberg and his wife, Desiree Liebenberg, were arrested along with Magdelena Petronella Kleynhans, Johannes Petrus Badenhorst, Helena Dorothea, Amy Schulenburg, Adriaan Dewald Strydom, Christelle Badenhorst, Nicolize van Heerden and Walter Niendinger in connection with an alleged Ponzi scheme. Liebenberg ran the scheme through Tariomix and Forever Zircon, purporting to buy and sell diamonds. Investors were promised high returns over a short time using a cashless platform called AE Switch. 

Thailand

Pansuk Siriwipa, 30, was sentenced to 14 years in prison for operating a Ponzi scheme that defrauded almost 200 victims out of over $25 million. Her husband, Pi Jiapeng, engaged in this luxury good fraud which they ran through Tradenation and Tradeluxury.

September 2024 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for September 2024. There were at least 4 new Ponzi schemes revealed this month and 3 guilty pleas. Ponzi schemers received more than 44 years of prison sentences this month and 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. 

Kenneth Alexander of Axiom Financial and Vanguard Holdings Group, Caedrynn Connor of Benchmark Capital Group, Robert Welsh of FFC Capital Ventures and Christopher Fisher of Magnolia Financial Group were sued in connection with an alleged $138 million scheme. Authorities are seeking to seize two properties they allege were purchased through proceeds of a Ponzi-type scheme.

Rudy Avila aka Jose Rodolfo Avila Guiterrez had a judgment entered against him and in favor of the CFTC for $10,5 million for defrauding more than 200 investors out of $6 million. Avila had represented he was an international finance consultant. The CFTC alleged that Avila, his company The L.I.F.T. Group LLC and two Costa Rican companies — CIG Internacional Sociedad Anonima and Trading Technologies Group Sociedad Anonima — defrauded at least 170 clients out of at least $4.2 million between 2017 and 2020, and that Avila then used three other companies — Trading Ventures Group LLC, Capital Ventures Group LLC and Ventures Group LLC — to defraud an additional 55 clients out of at least $1.8 million since 2019.

Taylor Orris Bank, of North Dakota, was ordered to stop selling unregistered investment contracts in an alleged Ponzi scheme run through Agridime LLC. Agridime is a Texas-based livestock dealer, and Bank promised guaranteed returns of 15% to 32% from investments in the company. Agridime raised at least $191 million from more than 2,100 investors. Bank earned $6 million in commissions for selling the investment contracts.

Stanislav Brill aka Stan Bril aka Slava Bril, 41, of Pennsylvania, was sentenced to 11 years and 3 months in prison in connection with a Ponzi scheme that involved the theft of about $6.7 million in federal pandemic relief funds. Brill operated the scheme through Mortgage Consultant Group and took in over $1 million from investors. He promised returns from loans on real estate and construction projects. He also borrowed money through The Brill Group, Inc. and used SAB Services LLC to run the scheme. The U.S. Attorney said Brill “blithely defrauded everyone from individual investors — many of whom lost their life savings or kids’ college funds — to a community bank, to the U.S. government and the millions of taxpayers who fund it. Meantime, he was shopping for Bentleys and boats.”

Emir Jesus Matos Camargo and Aureus Revenue Group LLC were sued by the CFTC on allegations that they were running a Ponzi-like scheme that targeted Spanish-speaking immigrants out of $1.5 million. The scheme involved a pooled investment fund that traded commodity futures contracts and promised guaranteed monthly returns between 1.5% and 3.75%.

Maria Dickerson aka Dulce Pino, 47, a Filipina pageant queen, was arrested on charges that she was running a Ponzi scheme through Creative Legal Fundings and The Ubiquity Group LLC. Dickerson promised approximately 130 investors fixed monthly returns of 10% to 17.5%, with compounding monthly interest from a legal services company. She represented that she would use investor funds to make loans to personal injury attorneys to fund their lawsuits. The scheme raised approximately $7 million from investors.

William Koo Ichioka, 30, of New York, was fined over $36 million in connection with a cryptocurrency and foreign exchange Ponzi scheme. Ichioka was previously found guilty of running the scheme that guaranteed returns of 10% every 30 business days. He previously pleaded guilty to owing non-family investors in “Ichioka Ventures” at least $21 million and owing his family members over $40 million. He was previously sentenced to serve four years in prison and ordered to pay a $5 million fine.

Sam Ikkurty, of Oregon, Jafia, LLC, Ikkurty Capital, LLC dba Rose City Income Fund I LP, Rose City Income Fund II, and Seneca Ventures, LLC were ordered to pay more than $209 million in sanctions relating to a commodity pool Ponzi scheme. The CFTC had sued the defendants for commodities violations in connection with crypto hedge funds.

Francisco Javier Malave Hernandez and Ricardo Javier Guerra Farias, of Florida, and Toller Stern Financial LLC were charged by the SEC in connection with a $5 million alleged scheme. The scheme involved the sale of promissory notes that the defendants represented were secured by $20 million of assets and promised returns of 24% to 72%. The scheme targeted the Venezuelan American community.

Brett Mauri, 61, was convicted in connection with a $2 million “Ponzi-like” scheme. Mauri is a home builder and used Bitterroot Timber Frames and Three Mile Creek Post & Beam, LLC to run the scheme that ran from 2018 through 2022.

Jeffrey Morris, 37, of West Virginia, was sentenced to 5 years in prison and ordered to pay about $5 million in restitution in connection with a Ponzi scheme he ran through Roxby Development LLC. Morris promised returns from the use of the money to develop real estate. 

Long Nguyen, 35, pleaded guilty to charges relating to a scheme that defrauded at least 20 people out of $2 million. He ran the scheme between 2015 and 2021.

William Rhew III, of North Carolina, was sued by the SEC on allegations that he was running a $28 million Ponzi-like manufacturing debt investment scheme through Chadley Capital LLC. Rhew raised more than $28 million from approximately 130 investors, promising between 18% and 48% annual returns on promissory notes. Rhew represented that he was using the funds to buy credit invoices of small and medium-sized businesses in the factoring industry.

James Robinson, an extradited British citizen, was sentenced to 7 years in prison for his role in the $57 million Ponzi scheme involving co-working company Bar Works, Inc., a bogus workspace share venture. Robinson had previously pleaded guilty, along with David Kennedy, to the scheme run by Renwick Haddow and James Moore. Robinson and Kenney controlled United Property Group and related entities that sold real estate and other investment opportunities to investors. They recruited agents to sell workspace leases in Bar Works and knowingly provided false offering documents. 

Robert F. Rothluebbers, 68, pleaded guilty to charges that he operated a scheme that raised at least $350,000 from four investors. He falsely claimed he would use the investors’ funds to purchase R-22 refrigerant in bulk, at a discount, and then re-sell the refrigerant to contractors at a 50% profit because the refrigerant is gradually being phased out. 

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Tony Iervasi, 58, was sentenced to 11 years in prison in connection with an AU$180 million scheme. Iervasi was the director of Courtenay House and promised returns to approximately 585 investors from trading in foreign exchange and futures markets. Athan Papoulias was sentenced in 2023 to 2 years in prison and David Sipina pleaded guilty.

Koon Tung “Gary” Chu was ordered to repay investors in connection with a scheme he had run through the Ralan Group. Ralan Group owed investors more than $500 million when it collapsed in 2019. A court ordered Chu to repay about $7.4 million to an investor defrauded in the scheme.

England

Michael Stanley, 68, was sentenced to 6 years in connection with his operation of a Ponzi scheme disguised as a betting syndicate run through Layzey Racing Syndicate. The scheme allegedly defrauded thousands of members out of at least £10.5 million after bringing in about £44.2 million.

Ghana

Authorities arrested 257 women and 230 men involved in recruiting victims into the QNet scheme. 

India

Authorities charged 25 people in connection with an alleged scheme run through IX Global LLC, IX Global Academy Private Limited, Pochale Global Academy Private Limited, and TB Global.

Singapore

Chen Wei, 51, pleaded guilty and was sentenced to 4 years in jail in connection with a crypto Ponzi scheme that defrauded investors out of more than $1.8 million. Wei represented that he could provide large returns from mining cryptocurrency in China through A&A Blockchain Technology. The scheme’s mastermind, Yang Bin, 61, was sentenced last month to 6 years in prison and Wang Xinghong was sentenced to 5 years. 

Turkey

Two managers of crypto platform OmegaPro – Robert Velghe and Andreas Szakacs – were arrested in connection with a scheme that promised returns of up to 300% over a maximum of 16 months. Authorities have assumed that the scheme is linked to Ruja Ignatova, known as the Crypto Queen who founded OneCoin. 

August 2024 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for August 2024. There were at least 9 new Ponzi schemes revealed this month. Ponzi schemers received more than 111 years of prison sentences. The average age of the fraudsters was about 51 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Jonathan Adam, 42, of Texas, and his brother, Tanner Adam, 38, of Florida, and their firms GCZ Global LLC and Triten Financial Group LLC, were charged by the SEC in connection with an alleged cryptocurrency scheme. Investors were promised returns from loans to a crypto asset trading platform that used a “bot” to supposedly identify arbitrage trading opportunities. The scheme brought in $60 million from more than 80 investors and promised returns of 13.5%.

Bernardo Mendia-Alcaraz, 52, and his private equity firm, Toltec Capital LLC, were charged by the SEC in connection with an alleged $3.3 million Ponzi-like scheme. They promised returns from low-risk private funds.

Carl Arnal aka Michael J. Cohen, 65, Christopher Vaughan, Thompson Hunt and Associates, Ltd. (THA), Brookdale Consultants LLC, Growth Point Consultants, Inc., Damon Artis, and Richard Gavzie were charged by the SEC for their roles in two alleged fraudulent schemes. The scheme raised $1.3 million by misrepresenting the Thompson Hunt investment as a government bond. Arnal and Vaughan misappropriated more than $1 million of the $1.3 million raised. Artis and Gavzie were also accused of soliciting $7 million in selling microcap securities. 

Janalie C. Bingham, of Florida, her convicted felon husband, Jean Joseph, and their company Wells Real Estate Investment, LLC, were charged by the SEC on allegations that they were running a Ponzi scheme that raised at least $56 million from approximately 660 investors. They represented that they had a $450 million real estate portfolio, but in reality, only $11 million was used to purchase real property. The scheme promised returns of 12% annually and 99% at the end of three years. 

Russell Todd Burkhalter, 52, of Georgia, and his company Drive Planning LLC, were charged by the SEC in connection with an alleged $300 million real estate Ponzi scheme. The scheme brought in money from more than 2,000 investors, promising returns of 10% every three months from land development projects. Burkhalter allegedly used investors funds to buy a $3.1 million yacht, $2 million for a luxury condo, and spent $4.6 million on chartering private jets. Burkhalter’s wife, Jacqueline Burkhalter, and The Burkhalter Ranch Corporation, Drive Properties, Drive Gulfport Properties, and TBR Supply House were also named as relief defendants.

Robert Christensen, 54, and Anthony Matic, 55, of Oregon, were indicted on charges relating to an alleged Ponzi scheme in which investors were promised returns from the supposed renovation and sale of undervalued residential properties. They promised returns of 8% to 15% within 30 to 90 days. The scheme defrauded investors out of about $11 million, and commercial lenders out of around $7 million. Christensen and Matic pleaded not guilty. In 2023, the SEC had accused them of running a Ponzi-like scheme through their businesses Foresee Inc., The Commission PDX LLC, The Policy PDX LLC, and Innings 150 LLC.

Kalin Thanh Dao, 32, of Minnesota was charged in connection with a fraudulent investment ring that defrauded more than 200 investors out of more than $10 million. Her father, Nghia Trong Dao, and mother, Thu Nguyet Le Dao, also face charges relating to the scheme. The scheme was run through TD Financial Services, NLC TD Financial Services, NLC Financial Services and NLC Venture Group, and promised returns of 20% to 2,000% over the course of one to 18 months from supposed ventures in stocks, gold, diamonds, and oil commodities.

David Gentile, 57, was found guilty of running a Ponzi-like fraud through GPB Capital Holdings LLC. GPB is an investment advisory firm that misrepresented the performance of the funds and the source of monthly distributions to investors. More than $1.8 billion was raised from thousands of investors. Jeffrey Schneider, 55, the owner and CEO of marketing company Ascendant Capital LLC, was also convicted. Jeffrey Lash, a former managing partner at GPB, pleaded guilty last year.

Tom Girardi, 85, was convicted on charges relating to a 10-year Ponzi scheme run through his law firm, Girardi Keese. Girardi blamed his former chief accountant, Chris Kamon, 50, for at least $15 million Girardi siphoned from client settlement funds. Kamon allegedly misappropriated about $50 million from Girardi Keese accounts.

Jesse W. Harris, 36, of Kansas, was sentenced to 2½ years in prison in connection with a scheme run through Harris Custom Projects LLC.

Cynthia and Eddy Petion and their company Nova Tech Ltd. were charged by the SEC with running a cryptocurrency scheme that took in more than $650 million from over 200,000 investors around the world. Nova Tech is a crypto investment platform. The SEC also charged six NovaTech promoters—Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley. They are accused of recruiting investors. 

Ross O. Schlomann, 45, of Wisconsin, was sentenced to 5 years in prison and ordered to pay $2.1 million in restitution in connection with a scheme involving home construction. Schlomann was a contractor with Refurbs Properties, LLC and defrauded more than a dozen victims whose homes he had promised to build. He used customer funds for other purposes, including shortages on previous projects.

Avinash Singh, 42, of Florida, was sentenced to 24 years in prison in connection with a $57 million investment fraud Ponzi scheme run through Highrise Advantage LLC. More than 1,100 victims were defrauded in the scheme. Singh claimed he was a successful foreign exchange trader, and investors were promised returns from investment in retail foreign currency contracts.

Paul Horton Smith Sr., 61, of California, was sentenced to 15 years and 8 months in prison and order to pay approximately $13.3 million in restitution in connection with a Ponzi scheme run through Northstar Communications LLC, Planning Services Inc., and eGate LLC that lasted nearly 20 years. The scheme defrauded at least 200 investors and brought in more than $24 million. Smith promised returns from purported investments in real estate and the stock market and that investments would generate a fixed rate of return.

James Stevens, 47, was sentenced to 4 years in prison in connection with a loan Ponzi scheme that was run through Primis Bank. Stevens is a former commercial lender who pled guilty to bank fraud by issuing fraudulent loans. Primis lost over $2.4 million. 

Josh S. Verne, 47, of Florida, was charged by the SEC for falsifying documents as part of a Ponzi scheme to induce investors to invest. Verne separately pleaded not guilty to related criminal charges.

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Ronald James Aitkens was sentenced to 4 years in prison in connection with a $112 million Ponzi scheme run through Royal Bengal Logistics. Aitkens raised more than $35 million from about 1,500 investors between 2005 and 2007.

Brian Robert Gunsten, 52, was charged in connection with an alleged wine Ponzi scheme in which victims loaned money to purchase wine that would later be resold. There were more than $1.3 million in losses.

Ward Derek Jensen, 55, was sentenced to three years in prison in connection with a scheme run through Kassel Enterprises. Jensen had promised investors returns of 14% to 18% per year from investment in a private fund.

India

Sandeep Chowdhury, 41, was arrested on charges that he was running a cryptocurrency Ponzi scheme. Chowdhury is the CEO of Yes World. 

Authorities attached assets in connection with its investigation of Pearlvine International, which is alleged to have run a Ponzi scheme from 2018 to 2023. 

Jiyajur Raheman Syed was arrested on allegations that he was running a Ponzi scheme through LFS Broking Company. The scheme allegedly defrauded 55 people. The company claimed to invest 80% of the funds in blue-chip companies.

Philippines

Joel Apolinario was found guilty in connection with the Ponzi scheme run through Kapa Community Ministry International, Inc. Apolinario and Christopher D. Abad were sentenced to one year and one day.

Poland

Marcin and Katarzyna P. were sentenced to 15 years and 12 years six months, respectively in connection with a Ponzi scheme that defrauded 18,000 investors out of $225 million.  The scheme was fun through Amber Gold. 

Singapore

Yang Bin, 61, was sentenced to 6 years in prison in connection with a cryptocurrency Ponzi scheme run through A&A Blockchain Innovation that defrauded more than 700 investors. Bin promised investors .5% returns daily from purportedly owning 300,000 machines that could mine cryptocurrency through its Chain Mining Scheme. Lu Huangbin, Chen Wei, and Wang Xinghong are co-conspirators. Wang was jailed for 5 years. A total of about $6.7 million was invested. 

South Korea

Byun Young-oh, the CEO of Wakon that operates the platform MainEthernet, was arrested on charges of running a scheme that generated $366 million of funds from over 500 investors. Investors were promised returns of between 45% and 50%. Byun denied that he was involved in a Ponzi scheme. Yeom Mo-si was also arrested in connection with the alleged scheme. Wakon’s parent company, SAK-3, is also under investigation.

Taiwan

Authorities sentenced 31 individuals in connection with a Ponzi scheme run though a peer to peer lending platform known as im.B, which is short for “I am Bank.” Tseng Yao-feng was sentenced to 16.5 years in prison, and his girlfriend Chang Shu-fen was sentenced to 12 years and two months. The other 29 defendants in the case received sentences ranging from 1–8 years.

Turkey

Andreas Szakacs aka Emre Avci was arrested in connection with a cryptocurrency and foreign exchange scheme run through OmegaPro aka Go Global. OmegaPro promised returns of up to 300% through a top-secret trading algorithm. The scheme allegedly defrauded millions of investors and brought in approximately $4 billion before it collapsed in 2022. Szakacs and co-founders Dilawar Singh and Mike Sims went into hiding after the collapse. Juan Carlos Reynoso was arrested in Mexico in 2023.