August 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for August 2023. At least 9 new Ponzi schemes came to light this month. Ten years of prison sentences were imposed on Ponzi schemers. The average age of the fraudsters was about 50 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Christopher Anderson, 47, of New Jersey, and Richard Curry, 36, of Pennsylvania, pleaded guilty to charges relating to the alleged $35 million Ponzi scheme masterminded by Eliyahu “Eli” Weinstein aka Mike Konig. Others charged in connection with the scheme are Aryeh “Ari” Bromberg, 49, and Joel Wittels, 57, Shlomo Erez, 55, a citizen of Israel, and Alaa Hattab, 34, of Canada. Anderson and Curry owned Tryon Management Group LLC. The scheme defrauded at least 150 investors. 

Denny Bhakta, of California, faced new charges in connection with a $4 million PPP loan, while earlier charges in connection with a $15 million Ponzi scheme remain pending. The SEC charged Bhakta in 2021 for an alleged scheme run through Fusion Hotel Management and Fusion Hospitality Corporation.

Wynn A.D. Charlebois, 53, of North Carolina, pleaded guilty to charges that he ran a Ponzi scheme that defrauded investors out of more than $5.3 million. Charlebois ran the scheme from 2015 through October 2022 and defrauded at least 39 investors. He promised that their investments were risk free and that he had stock options that investors could purchase.

William V. Conn Jr., a Georgia CPA, was charged by the SEC in connection a Ponzi scheme run through Horizon Private Equity, III LLC. The scheme raised $100 million from about 400 investors, most of whom were elderly. John Woods was the mastermind of the scheme. 

Johanna Michely Garcia, 40, of Florida, was charged in connection with an alleged Ponzi scheme run through MJ Capital Funding LLC. MJ Capital offered merchant cash advances and brought in $190,700,000 and promised investors about 10% of the money they raised. Pavel Ramon Ruiz Hernandez was charged in 2022 and pleaded guilty in April this year. Garcia had been dubbed Florida’s Mother Theresa for helping companies get short-term financing. 

Erik J. Hass, 53, of Oregon, was sentenced to 2½ years in prison and ordered to pay $1.75 million in restitution in connection with a Ponzi scheme that he ran through Simply Grains Inc. Hass claimed that the company supported Christian ministries and organizations while offering returns for investors. He offered compounded annual returns of up to 30%.

Peter P.D. Leach, of Rhode Island, pleaded guilty to charges related to a Ponzi scheme that misappropriated $500,000 and caused losses of more than $250,000. Leach is a personal injury lawyer who misappropriated more than $500,000 in client settlement funds.

Douglas Lien, 82, of New Mexico, pleaded guilty to charges that he ran a 20-year Ponzi scheme that resulted in losses of about $5 million for 27 investors.

Allen Todd May aka Jacob Turner, 58, was caught five years after he escaped prison in connection with a $7 million Ponzi scheme. May was sentenced to 20 years in prison in 2012 and escaped in 2018 by stealing a prison van. May was caught living a lavish lifestyle in Florida under a false name. While in prison, it is believed that he stole more than $700,000 by impersonating companies owed oil and gas royalties. 

Volodimyr Pigida, 48, failed to show up to his sentencing hearing. He was convicted last year on charges that he was running a Ponzi scheme with his wife, Marina Bondarenko that defrauded victims out of over $11 million. The scheme involved “Trend Sound Promoter” that convinced people to buy packages related to email marketing.

Craig Sherman, 80, of Florida, pleaded guilty to charges that he defrauded clients in a Ponzi scheme. Sherman is a retired lawyer who promised investors 6% to 8% returns from real estate projects where he would loan money for construction projects. The total losses were approximately $7 million.

Chad Stickforth and his company, RSF Capital LP, were charged by the SEC in connection with an alleged $5 million Ponzi scheme. Stickforth raised money from approximately 20 investors, promising returns from futures contracts, commodity interests and options.

Roman Storm, of Washington, and Roman Semenov, of Russia, were charged in connection with a cryptocurrency scheme called Tornado Cash that allegedly made more than $1 billion in money laundering transactions. They are believed to have laundered hundreds of millions of dollars for the Lazarus Group, a North Korean cybercrime organization. Tornado Cash claimed it was untraceable and allowed for anonymous financial transactions.

Steven Keith Woodard Sr., of Hawaii, consented to a ban from the securities industry in connection with charges that he ran a $6 million Ponzi scheme. Woodard did not admit or deny the allegations that he defrauded about 30 investors in a supposed risk-free trading scheme. Woodard sold clients of his advisory firm, Morganwood, promissory notes that offered annual returns of 15% to 30%. He used fund names such as Tangible Economy Fund and Hi-Income Fund. 

Jeven “J” Wright, 40, was arrested in connection with alleged Ponzi scheme involving the buying and reselling of cars. Wright was supposedly involved in the import and export of cars but needed financing to purchase cars. 

INTERNATIONAL PONZI SCHEME NEWS 

Bangladesh

Metaverse Foreign Exchange Group (MTFE) collapsed and is alleged to have been running a Ponzi scheme. Masud Al Islam is believed to be the mastermind of the scheme that was a trading service provider for online investment in foreign exchange, commodities, stocks and other products. Over $1 billion may have been lost in the scheme. The scheme is being investigated in Sri Lanka.

Brazil

Johann Steynberg was found guilty in connection with the South African crypto trading scheme run through Mirror Trading International. He was sentenced to 3 years and 6 months in prison, but the court commuted his sentence to a fine of just over $31,000.

Canada

Curtis Gordon Quigley, 56, and Kathleen Treadgold, 56, were charged in connection with an alleged $7.8 million scheme. The scheme was run through Group Venture Inc. and promised returns from the flipping of real estate. 

England

A judgment was entered against Robin Forster, the director of Qualia Care Properties Ltd. and Qualia Care Developments Ltd. The Qualia Care entities offered investments in care homes run by Qualia Care Limited where investors purchased a long-term lease in a care home and then sublet the room back to Qualia. Investors were promised returns of 10% of the purchase price. The scheme took in £57 million from 380 investors. The action is also against the sales agent for the scheme, Fortem Global Limited, which was owned by Forster and Richard Tasker.

India

Authorities arrested Darshan Paranjape, 40, in connection with an alleged Ponzi scheme that defrauded 33 investors out of Rs 9 crore.

Nirod Das, one of the heads of Solar Techno Alliance, was arrested on allegations that he was running a crypto-currency Ponzi scheme. Solar Techno supposedly offered a service that enabled users to order anything they want from the nearest farmers in the shortest amount of time using block chain technology. The scheme involved the STA token. Gurtej Singh Sidhu and Ratnakar Palai were also arrested in connection the crypto-currency scheme that defrauded more than 10,000 victims. The scheme is believed to involve more than $120 million. David Gez, a Hungarian national, is believed to be the head of the scheme and a Look Out notice has been issued again him. A Look Out notice was also issued against Krishna Kumar, Anil Kumar, and Bhoora Ram.

S Chitravel, 31, was arrested in connection with an alleged Ponzi scheme run through Bettec Technologies Private Limited, run by Guanhua Wang. Wang also runs Gamecamp Technologies Private Limited and Byrontec Solutions Private Limited.

Prabir Kumar Chanda and Pranab Kumar Das, directors of MPS Greenery Developers Limited, were arrested in connection with a scheme that they ran through the company. MPS was also controlled by Pramatha Nath Manner.

Nigeria

Authorities shut down Stockmatch Investments Limited for engaging in illegal investment activities. Neither the entity nor the investments are registered.

South Africa

Neo Patrick Makhokolo, 29, the co-founder of Black Child Billionaire, was found guilty and sentenced to four years on various counts. Co-founder Lebohang Ernest Maboeba, 27, is on the run. The scheme promised returns of between 25% and 100% per month.

July 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for July 2023. At least 7 new Ponzi schemes came to light this month. Over 24 years of prison sentences were imposed on Ponzi schemers. The average age of the fraudsters was about 50 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Eddy Alexandre, 51, the CEO of EminiFX was sentenced to 9 years in prison and ordered to pay nearly $214 million in restitution in connection with a cryptocurrency trading scheme.  Criminal authorities referred to the operations as a “massive Ponzi scheme.” An estimated 25,000 investors deposited nearly $250 million into the scheme, which targeted the Haitian community and fellow church members. Alexandre represented that investors could receive weekly returns of 5% to 9.99%.

Robert D. Christensen and Anthony M. Matic of Oregon were charged by the SEC with running a Ponzi-like scheme through Forsee Inc., The Commission PDX, LLC, The Policy PDX, LLC, and Innings 150, LLC. Investors purchased more than $10 million in promissory notes that promised interest rates between 9% and 15%. The scheme was involved in the purported investment in real estate.

Nayeem Choudry, 27, and his hedge fund, Dream Venture Capital Group LLC, of North Carolina, were sued by the SEC seeking to stop an alleged Ponzi scheme that raised at least $9.3 million from about 80 investors. Choudry promised risk-free investments in his hedge fund but in reality he lost over $4.8 million in options trading. He misused some funds and made payments to other investors of $3.5 million. A permanent injunction was entered against Choudry, prohibiting him from offering any investments in Dream Ventures.

Ryan Morgan Evans had a judgment entered against him by the SEC which resolved claims arising from the fraudulent scheme known as Saivian. Judgments had previously been entered against Eric J. “EJ” Dalius and Saivian LLC. The scheme involved the sale of “Cashback Membership” securities that entitled holders to receive 20% cash back on retail shopping purchases in exchange for paying a fee of $125 every 28 days. Evans agreed to pay $338,743 in disgorgement, interest, and penalties.

Dwight A. Foster and KEL Enterprises reached an agreement with the CFTC for permanent registration and trading bans. Foster used KEL Enterprises to solicit funds from at least 45 investors to invest in the commodities and foreign exchange market called QYU Holdings Corp.

Shawn Edward Good, 56, of North Carolina, was sentenced to 7 years and 2 months in prison and ordered to pay more than $3.6 million in restitution following his admitting to running a $7 million Ponzi scheme. Good is a former Morgan Stanley advisor who convinced his clients to borrow against their portfolios and give the money to him to invest. He instead spent the money on himself.

Richard Heart aka Richard Schueler, 43, along with his Hex token, PulseX asset trading platform, and PulseChain were charged by the SEC in an alleged Ponzi scheme that brought in $1 billion. Heart represented that investors could make 38% annual returns on Hex and that Hex was “built to be the highest appreciating asset that has ever existed in the history of man.” Heart is believed to have spent investor funds on McLaren and Ferrari sports cars, four Rolex watches costing $3.02 million, and "The Enigma," a 555-carat black diamond costing 3.16 million British pounds (then $4.28 million) at a Sotheby's auction in February 2022.

Anthony B. Liddle, 41, of Wisconsin, was sentenced to 8 years in prison in connection with a scheme run through his financial advisory firm, Prosper Wealth Management. Liddle stole more than $1.9 million from his clients by promising them returns on supposed low-risk investments. Liddle had pleaded guilty in February 2023.

Sousa Pires and Flavio Mendes Gonclaves had final judgments entered against them in connection with the cryptocurrency scheme run through EmpiresX. The judgments were entered by default and they were also ordered to pay disgorgement of over $32 million.

Carl Ruderman, 81, was indicted on charges that he defrauded investors in the 1 Global Capital Ponzi scheme. Ruderman ran up $50 million in debt before filing for bankruptcy. 1 Global Capital failed to loan out millions of dollars that the company had raised from investors after representing that funds would be deployed to small and medium-sized businesses. The scheme promised investors returns from business loans known as merchant cash advances and defrauded 3,600 investors in 42 states. Former chief financial officer Alan Heide and attorney Andrew Ledbetter were previously sentenced to 5 years each in connection with the scheme. Jan Douglas Atlas was also previously sentenced.

Brent Adam Seaman, 49, of Florida, was charged by the SEC with running an alleged Ponzi scheme that raised about $35 million from at least 60 investors. Seaman represented that he was a venture capitalist who would place investor funds with start-up technology and software companies and use the funds to trade currencies and commodities. He promised returns between 18% and 48% and that the investments were safe and guaranteed. Seaman ran the scheme through Accanito Capital Group and Surge LLC. Seaman’s wife, Jana Seaman, was also named in the complaint along with her affiliated entities, Valo Holdings Group, LLC and Surge Capital Ventures, LLC. She has agreed to pay back more than $757,000. The SEC also accused the following entities of securities violations: Accanito Holdings, LLC, Accanito Equity, LLC, Accanito Equity II, LLC, Accanito Equity III, LLC, and Accanito Equity IV, LLC.

Avinach Singh and his company, Highrise Advantage LLC, declined to settle with the CFTC along with other co-conspirators who resolved claims relating to a foreign exchange commodity pool. The scheme allegedly run by Singh brought in more than $57 million from more than 1,300 pool participants.

Reva Joyce Stachniw, 71, was sentenced to 7 years in prison in connection with a Ponzi scheme run with Ron Throgmartin through Universal Herbs LLC. The scheme ran from 2017 to 2019 and promised returns or 10% to 20% from short-term investments in cattle and marijuana. A third conspirator Mark David Ray previously pleaded guilty but has not yet been sentenced. The co-conspirators directed new investors to make payments directly to individuals who the investors were falsely led to believe were business associates. Stachniw assisted investors to make the payments through her companies, RM Farm & Livestock LLC and Sunshine Enterprises LLC. 

Joseph Michael “Mike” Todd, of Florida partially settled charges brought by the SEC for defrauding at least 20 brokerage customers out of at least $3 million. The scheme was run through Todd Financial Services LLC and TFS Insurance Services LLC. Todd represented that he would invest customers’ funds in various securities but instead misappropriated the funds for her personal use and made Ponzi-like payments to conceal the scheme.

Eliyahu Weinstein aka Mike Konig, 48, of New Jersey, was arrested on allegations that he and 4 others defrauded 150 investors out of more than $35 million. Former president Trump had previously granted Weinstein clemency after Weinstein had served less than 8 years of a 24-year sentence he had received for running two other investment fraud schemes totaling more than $200 million. The others charged in connection with the scheme are Aryeh "Ari" Bromberg, 49, Joel Wittels, 57, Shlomo Erez, 55, and Alaa Hattab, 34. They solicited funds through Optimus Investments Inc. and Tyron Management Group LLC and promised returns from supposed investments in COVID-19 masks, scarce baby formula, and first-aid kits for Ukraine.

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Frederick Johnathon Nielsen fka Fred Gilliland was charged in connection with conduct occurring in 2018 and 2019.  Nielsen has previously pleaded guilty for breaching a settlement that had banned him from the financial markets for 25 years. Nielsen had previously traded securities without being registered and had solicited more than $20 million from over 200 investors. 

China

Guanhua Wang, 40, was accused of running a Ponzi scheme through Bettec Technologies Private Limited and Gamecamp Solutions Private Limited and Byrontec Technologies Private Limited. Authorities in India issued a Look Out Circular for Wang who stole money out of India through shell companies and crypto-traders.

India

Authorities searched 5 locations belonging to Hindustan Infracon India Limited in connection with a Ponzi scheme. 

Kaustuv Ray was arrested in connection with his links to an alleged Ponzi scheme run through Pincon Group. Ray asserts that he was arrested wrongfully.

V Covindasamy, 66, and his wife C Lakshmi, 56, and A Justin Prabhakar, 43, were arrested in connection with the Universal Trading Solutions alleged Ponzi scheme. Covindasamy and Lakshmi are the parents of C Gowtham Ramesh, 33, who is the managing director of Universal Trading. Authorities alleged that as many as 76,000 investors were invested in the scheme.

Dinesh Kumar Singh aka Dinesh Singh Gujjar was arrested in connection with the Bike Bot alleged Ponzi scheme. The scheme was allegedly run by Sanjay Bhati, the promoter of Garvit Innovative Promoters Ltd.

Ireland

Nicholas Wickham was disqualified for 7 years from holding a directorship following a finding that he was running a Ponzi scheme through his company, Irish Gold and Silver Bullion Limited. 

Nigeria

Bamishe Ajetunmobi was arrested and kept in custody in connection with N7.5 billion fraudulent scheme. Ajetunmobi ran the scheme with his wife, Elizabeth Ajetunmobi, who is still at large, through their firm, Imagine Global Solutions Limited. They offered 10% returns on investments.

Zimbabwe

Zhao Jiaotong, 39, the founder of E-Creator Electronic Commence Private Limited, and Trymore Tapfumaneyi, 32, were arrested in connection with an alleged Ponzi scheme run through E-Creator. He had fled the country with investors’ funds of about $1 million. Investors could deposit $15, $100 or $500 to receive dividends from $50 to $2,000. Others involved with E-Creator who are still at large are Justin Kuchekenya, Billy Thomas Syedou, and Abraham Mutambu. After complaints that investors could not access their funds, E-Creator posted a message on its website that it was no longer operating.

Emmanuel Chikweza was arrested in connection with an alleged Ponzi scheme he ran through Homelife Furniture and Electrical Appliance Company.

June 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for June 2023. Seventeen new Ponzi schemes came to light this month, involving over $1 billion of investor dollars. Over 62 years of prison sentences were imposed on Ponzi schemers, and there were at least 4 guilty pleas and one criminal conviction. The average age of the fraudsters was about 51 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Wilson Baston aka William Baston aka Chanon Gordon aka Jackie Wilson, 62, of New York was sued by the SEC in connection with an alleged real estate Ponzi scheme. Baston had previously pleaded guilty in 2008 to defrauding hundreds of investors in a Ponzi scheme and was released from prison in 2017. Shortly after his release, he began using aliases, including Chanon Gordon to run a new Ponzi scheme in the real estate industry run through Gordon Management Group LLC. He promised returns within days or weeks along with a fee that could equal as much as 25% of the investment. 

Wendy Beard, 58, of Michigan, was accused of running an alleged Ponzi scheme that defrauded art collectors out of $1.6 million worth of artwork. Beard ran Wendy Halsted Gallery and accepted payments for artworks that were never delivered.

Ray Holcomb Brewer, 66, of California, was sentenced to 6 years and 9 months in prison for his role in operating an $8.75 million Ponzi scheme in which he claimed he could turn cow manure into green energy. He claimed his business, CH4 Power, built anaerobic digesters on dairy farms that would turn biodegradable material into methane. Brewer promised returns of 66% and tax incentives. 

Tyler Campbell, INR Consulting LLC, Hidden Springs Holdings Group LLC, Michael Delgado, Total Solution Construction LLC, Bagpipe Holdings LLC, and Bagpipe Multimedia LLC were all subject to an asset freeze and injunction. The SEC named the parties as relief defendants as they allegedly received funds for primary defendants Integrated National Resources Inc. dba WeedGenics, Patrick Earl Williams, and Rolf Max Hirschmann. The SEC has alleged that they were running a $60 million Ponzi scheme.

Yossi Engel was ordered to disgorge ill-gotten gains from a $47 million Ponzi scheme he ran that targeted the Orthodox Jewish community. The scheme was run through iWitness Tech LLC. Investors were promised returns from the purchase and installation of security cameras by Engel on behalf of his clients. 

Bruce Ford, 50, of Indiana, was sentenced to 4 years and 3 months in prison in connection with a Ponzi scheme involving $1.2 million. Ford was a licensed insurance broker who encouraged his clients to cash out their retirement accounts and invest in real estate and business ventures. He used the money for his personal expenses. 

Cedric Dewayne Griffin was charged by the SEC in connection with an alleged Ponzi scheme that targeted members of the African-American community in Florida. The scheme raised $5.9 million from at least 103 investors through a fraudulent securities offering in which he offered promissory notes issues by his companies G8 Equity LLC and G8 RE Capital LLC. Griffin offered monthly returns ranging from 10% to 33%. 

Marlin Hershey, 53, and Dana Bradley, 53, of North Carolina, pleaded guilty to charges relating to a Ponzi scheme run through Performance Retire on Rentals and Distressed Lending Fund.  The scheme ran for 12 years.

William Koo Ichioka, 30, was charged by the CFTC, the SEC, and the US Attorneys Office in connection with an alleged $21 million cryptocurrency Ponzi scheme run through Ichioka Ventures LLC. He promised 10% returns every 30 business days and guaranteed investors’ principal. Approximately 75 investors were defrauded in California and Oregon.

Kevin Kang, of Florida, and BKCoin Management LLC were sued by the SEC in connection with an alleged crypto asset fraud scheme. BKCoin had raised around $100 million from 55 investors between 2018 and 2022 to supposedly invest in crypto assets. The complaint also names Bison Digital LLC as a relief defendant.

Brian Lee Kissinger, 53, and Kenny Rojas, 45, of California, pleaded guilty to charges relating to a scheme run through Aria Management Group. They recruited victims to invest in buying liens on distressed properties. The scheme involved losses of over $1.4 million. 

Jason Kurland, 49, was sentenced to 13 years in prison in connection with a $100 million Ponzi scheme. Kurland was a lottery lawyer who steered his clients who had won large jackpots into investment schemes run by co-conspirators and into his own companies. The other defendants are Christopher Chierchio, 52, Frangesco “Frankie” Russo, 38, and Francis “Frank” Smookler, 45.

Jeffrey Lash, 54, pleaded guilty to charges relating to the Ponzi scheme run through GPB Capital Holdings. The scheme, run by GPB founder David Gentile, defrauded 17,000 investors out of $1.8 billion.

William Logsdon, 54, was convicted on charges relation to a Ponzi scheme run with his mother-in-law, Jamie Thompson, through National Royalty Group. They promised returns from investments in the purchase of royalty interests in various oil, gas and mineral projects in Texas and New Mexico. Victims were defrauded out of more than $1,500,000.

Billy Marcum Jr. was sentenced to nearly 17½ years in prison and ordered to pay more than $16.6 million in restitution for his role in a $25 million Ponzi scheme that caused losses of more than $13 million. The oil and gas leasing scheme defrauded more than 120 investors. Marcum owned several companies, including Viejo Services, Navarro Minerals, and the Caslin Group.

Miles Burton Marshall was accused of running a Ponzi scheme that brought in about $90 million from hundreds of investors. Marshall promised returns of 8% and represented that he was making profits from real estate investments. 

McClain Farms, 7M Cattle Feeders Inc., McClain Feed Yard Inc., and the estate of Brian McClain, the farm's owner who passed away in April 2023, were accused of running a Ponzi scheme involving more than $122 million in cattle operations. Some investors were guaranteed returns of 30%.

Surage Kamal Roshan Perera and his firm, Janues Capital Incorporated, were charged by the SEC in connection with an alleged Ponzi scheme. Perera represented that he had access to restricted securities at a discounted price through connections with institutional investors. He guaranteed returns of up to 9% and said he used a trading strategy called Options Straddles. Perera misappropriated at least $3.3 million of out the $4.3 million he raised. 

Emerson Pires and Flavio Goncalves were ordered to disgorge about $32.2 million and to pay penalties and interest totaling another $13.7 million in connection with the crypto hedge fund EmpiresX. The two had fled the country and did not respond to the SEC’s complaint that had also named the head trader, Joshua David Nichols. The cryptocurrency scheme raised funds totaling about $40 million based on falsified claims about a proprietary trading bot that would generate returns. 

Darren Anthony Robinson, 53, was charged in connection with an alleged Ponzi scheme that defrauded investors out of $100 million. The scheme was run through QYU Holdings, a foreign exchange trading firm, which was located in Panama and Cayman Islands. Investors were guaranteed returns of 3% per month and that the firm only paid on trading profits. 

Sanjay Singh, 43, of Florida, was charged in connection with an alleged $112 million Ponzi scheme run through Royal Bengal Logistics, Inc. Royal Bengal was represented to be a successful trucking business while the company was actually losing money. Singh and his co-conspirators raised funds from investors and promised guaranteed returns from 12.5% to 325% from high-yield investment programs. Investors were told that their funds would be used for business expansion and enhancing their fleet of trucks and trailers. The scheme targeted the Haitian-American community and defrauded as many as 1,500 investors out of about $70 million. Singh allegedly misappropriated millions of dollars to renovate his home, make mortgage payments, and pay other personal expenses.

Josh S. Verne was charged by the SEC in connection with an alleged $30 million Ponzi scheme. The scheme defrauded more than 100 investors through his online rent-to-own business Ownable, LLC, Ownable Capital Partners I, LLC, and three limited liability companies. Verne allegedly used at least $9.3 million of investor funds for his own benefit.

Stephen Keith Woodard Sr. was charged by the SEC in connection with an alleged Ponzi scheme that raised approximately $6 million from more than two dozen victims. Woodard ran the scheme from 2016 to mid-2021 by offering promissory notes issues by Morganwood Ltd. He claimed he had a risk-free trading strategy that preserved capital but instead had mounting trading losses.

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Michael Dunjey and his company Ascent Investment and Coaching were accused of running a Ponzi scheme that involved $150 million.

Canada

Greg Martel was suspended by authorities in connection with a $226 million Ponzi scheme that he ran through Shop Your Own Mortgage.

England

Anthony Constantinou aka Antonis Hadjicostis and Georgios Arnaoutakis, 41, was sentenced to 14 years in prison in his absence in connection with a £70 million Ponzi scheme run through Capital World Markets. He promised returns of 60% per year on risk-free foreign exchange markets. A total of 312 investors were defrauded.

Liam Francis Wainwright, 62, was found guilty and sentenced to 7 years in prison in connection with a £20 million Ponzi scheme run through Rawdon Asset Finance Ltd. Wainwright represented that he was using investor funds to lend to businesses with security on property, land or plant and equipment, but was actually using the money on ventures including a racehorse syndicate and failed private businesses.

Guyana

Phylicia Jailim was accused of operating a Ponzi scheme involving more than $228 million. She defrauded investors by representing that she was the Chief Executive Officer of Dream Chasers, which borrows money from investors and lends the money to government contractors and farmers who are having financial problems. She promised returns of 5% to 20% per week. 

Philippines

Authorities ordered Casa Infini Builders and Realty Co Ltd., Ray Education Directions Consultancy Services, Casa Infini Realty Management Co Ltd and Ray International Philippines Corp. to cease operations. The alleged fraudulent scheme promised returns from real estate projects and guaranteed income. 

PetroMobil Corporation was charged in connection with an alleged scheme in which investors were promised high returns from investments in gas stations and unregistered securities.

South Africa

Khongetela Raymond Mabasa, 48, and Ivan Mogane, 42, were arrested in connection with an alleged Ponzi scheme. 

Willem Theron aka Ariel aka Adrian is wanted in connection with an alleged Ponzi scheme known as Love and Lets Live.

South Korea

Authorities detained two individuals in connection with an alleged $350 million cryptocurrency scam that defrauded 435 users. The scheme promised returns of 3% to 16% in a matter of weeks. 

Thailand

A nun known as “Pattana”, 62, was arrested in connection with her involvement in an alleged Ponzi scheme. The scheme solicited investment in a cloud storage company and promised high returns. Over 1.3 billion baht were invested in the scheme.

Uganda

Yinghe Chen, a Chinese national, was detained after being on the run since last year. Chen is accused of running a Ponzi scheme through BLQ, a sports betting company in which Ugandans have lost billions of shillings. 

May 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for May 2023. Ponzi scheme activity levels were higher this month with 16 new Ponzi schemes hitting the news. The new schemes involved over $200,000,000 of investor dollars. Over 33 years of prison sentences were imposed on Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Brett M. Bartlett was charged in connection with an alleged scheme run through 7M E-Group and Dynasty Toys that involved $20.5 million. Bartlett was also sued along with his father-in-law, Scott Miller, by the SEC in connection with the scheme. Bartlett and Miller sold promissory notes, stocks and fraudulent gold contracts to more than 1,000 investors, many of whom attended a large church in Illinois. They claimed that they needed funds to purchase inventory they were confident they could sell by Christmas, and they offered 8% to 20% returns to investors. 

Wynn A.D. Charlebois, 52, faced new charges in connection with an alleged Ponzi scheme that ran from 2015 to 2022.  The scheme involved $6.9 million, and at least 39 investors were promised returns from investments through his companies, including WC Private, Wilcox Hybrid, and Damon Investments.

Derek Vincent Chu, 41, of California, was indicted on charges relating to an alleged $39 million Ponzi scheme. The scheme involved over 100 victims who were defrauded in a scheme involving the purchase and resale of professional basketball tickets and luxury suites at arenas for the Lakers, Clippers, and Warriors. The scheme ran from 2013 to 2020. Chu diverted more than $7.3 million for his own benefit to pay for travel, a luxury car, and jewelry.

Phillip Galles, 57, of Chicago, was arrested on charges that he ran a scheme that took in more than $6 million from more than 50 investors with promises of returns that exceeded 200%. The CFTC also filed charges relating to Galles’ investment program run through Tyche Asset Management. Galles misrepresented to investors that he had about $2 billion under management and that a Kuwaiti sovereign-wealth fund was interested in investing in the hedge fund.

Shawn Edward Good of Delaware was sentenced to 7 years and 3 months in prison and ordered to pay $3.61 million in restitution in connection with a Ponzi scheme that took in more than $7 million. Good is a former financial advisor who used his role to take advantage of at least 12 clients. He promised returns of between 6% and 10% over three- or six-month terms for investments in purported real estate projects and tax-free municipal bonds.

Cedric Dewayne Griffin, of Florida, defrauded 103 investors out of about $5.9 million in a real estate scheme he ran through his company, Premier Coast Realty. Griffin used some of the money for his own benefit and paid earlier investors purported returns in a Ponzi-like fashion. 

Chimene Van Gundy, 46, Outstanding Real Estate Solutions, Inc., and its salespeople, Michael Trofimoff, Santos Kidd, and Maria Tosta, were sued by the SEC on allegations that they were running an investment scheme involving $18.5 million and at least 600 investors. The scheme promised returns from investments in the purchase, refurbish, and resale of mobile homes. Gundy is the self-proclaimed “Queen of Mobile Homes” although she did not actually own the hundreds of mobile homes as represented. Outstanding Real Estate Solutions made Ponzi-like payments to investors.

Rolf Max Hirschman and Patrick Earl Williams aka BigRigBaby, and their company Integrated National Resources, Inc. dba WeedGenics, were shut down by the SEC in what is alleged as a Ponzi-like scheme involving $60 million and about 350 investors. They promised investors guaranteed returns of 36% from the expansion of their cannabis operations and the WeedGenics facilities. In reality, there were no such facilities. Hirschman and Williams instead spent the money on dining, adult entertainment, jewelry, luxury cars, and residential real estate.

Charles Thomas Lawrence Jr., of Connecticut, was sued by the SEC on allegations that he and his associates were running a $5 million Ponzi scheme. Lawrence ran the scheme through a fake Swedish financial services company called Compagnie Trust Privé KB, and he promised investors weekly returns of 25% to 100%. He created a fake web-portal to show investments and returns. Lawrence misappropriated at least $4.8 million from 11 investors and spent the money at Cartier and to charter jets and for international travel.

John Quadrino of New York was sentenced to 3 years and 5 months in prison and ordered to pay $3.3 million in restitution in connection with a Ponzi scheme run through Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading Inc. Investors were promised returns from the sale of gold, jewelry and diamonds to refineries and jewelers. The scheme ran for five years, brought in $13.1 million, and caused losses of about $3.3 million. 

Thomas D. Renison, 69, of Connecticut, was sentenced to four years in prison, and Timothy J. Allcott, 65, of Massachusetts, was sentenced to 2½ years in prison in connection with a scheme that took in over $6 million from 2015 to 2018. The scheme was run through ARO Equity LLC, and investors were promised returns from investments in three different businesses. 

Chander Singh, of New Jersey, was sentenced to 8 years in prison after pleading guilty to charges that he ran a Ponzi scheme through his investment firm, SC Capital Investors LLC. The scheme started in at least 2014 and ran for about 5 years, defrauding victims out of about $4.7 million. Co-conspirator Chandrika Basil Singh pleaded guilty and is awaiting sentencing. The criminal case of Shelly Singh-Camargo is still pending. Singh rolled losses from a prior investment firm, FC Investments, which was also a failed distressed property flipping business.  

Phillip Roy Wasserman, 66, of Florida, was convicted on charges relating to a Ponzi scheme that defrauded victims out of $6 million through a life insurance start up known as FastLife. Co-defendant Kenneth Rossman pleaded guilty in 2021. The FastLife product was described on Wasserman’s LinkedIn page as a “crazy fast” way for people to purchase life insurance from “highly rated insurance companies.” Investors in the startup were guaranteed an annual return of 10% to 12%. 

INTERNATIONAL PONZI SCHEME NEWS 

Australia

Linda Anne Marissen was charged with assisting in the alleged $250 million Ponzi scheme run by Chris Marco. The scheme allegedly defrauded six investors out of about $30 million. Marissen was Marco’s executive assistant.

Botswana

Ecoplexus Investment Group, an online scam, imploded after having spread rapidly through social media. The scheme promised exorbitant returns – as much as 1,544% returns per year – and was based on misrepresentations that victims’ funds would be invested in products of Ecoplexus, a real US company which specializes in the development, design, construction, and financing of renewable energy projects in the US and key international markets.

England

Christopher Toynton, 73, and Ross Gibson, 27, were sentenced 4½ years and four years five months, respectively, for running a Ponzi scheme though the Lottery Syndicate Club. The scheme was operated between 2017 and 2019 and took in about £4 million.  

Anthony Constantinou, 41, was convicted and found guilty on charges relation to a $62 million Ponzi scheme ran through Capital World Markets. Constantinou had skipped bail, but the trial continued in his absence. Constantinou had offered a 5% monthly return on investments in foreign exchange. Capital World Markets operated from 2014 to 2015, and funds were received from more than 250 investors. Their funds were not, however, actually invested in foreign exchange investments.

New Zealand

Thomas Alexander Kokouri Tuira aka Alex Tuira, and Aroha Awhinanui Tuiri, were charged in connection with an alleged $4.1 million Ponzi scheme run through Ngākau Aroha Investments Ltd and Power To Me Aotearoa Tapui Ltd. The scheme involved two funds and financial literacy training. More than 60 investors were defrauded.

Thailand

Pattanapon Kunjara Na Ayudhaya (“DJ Man”) and Suteewan Taweesin (“Baitoey”), along with Chatchai Kochatin, Teepatsakorn Kimwangtako, Suranat Narkmusik and Aryuwat Chaimethanarakul, were arrested on charges relating to the Forex-3D Ponzi scheme. The Forex-3D investment scheme was created by a brokerage company, RMS Familia, established in 2015 and run by Apiruk Kothi. 

Wantanee Tippaveth and her husband Methi Chinpa aka Boss Chinnapa, and nine others were found guilty of running a Ponzi scheme known as the Mae Manee Ponzi scheme.  They defrauded victims through a loan scam promising returns of 93% and causing total losses of 1.37 billion baht (approximately $51.3 million) to 2,533 people. Tippaveth and Chinpa were each sentenced to 12,640 years in jail, but the sentences were commuted to 5,056 years by the Criminal Court. The couple is expected to be in jail for just 20 years under the law of Thailand which limits jail time to 20 years.

April 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for April 2023. The good news is that the activity for Ponzi schemes was slightly lighter this month.  But there were still 9 new Ponzi schemes and 2 guilty pleas reported. The average age for the alleged Ponzi schemers was approximately 43. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Ted Brent Alexander, of Mississippi, changed his plea to a guilty plea for his role in a Ponzi scheme run through Madison Timber Properties by Lamar Adams. Alexander was a lobbyist for the scheme and was charged along with Jon Darrel Seawright in connection with the scheme that involved $164 million. The scheme purportedly involved buying timber rights from landowners and reselling them to mills at higher prices.

Marcus Todd Brisco, 26, of Texas, was charged by the CFTC on charges that he and his companies, Yas Castellum LLC and Yas Castellum Financial LLC, ran a $146 million Ponzi scheme. Other co-defendants are Tin Quoc Tran, Francisco Story, Fredirick Safranko, Michael Sims, and SAEG Capital General Management LP.

Jason D. Bullard, 58, of Minnesota, and his wife, Angela Romero Bullard, 50, were sued by the SEC alleging that they ran a Ponzi scheme from 2007 through 2021 that took in more than $18 million from 200 investors.  The Bullards owed Empire Racing Stables LLC, a one timing winning horse operations. The SEC complaint alleges that the Bullards and their business, Bullard Enterprises LLC, promised returns of 10% to 12% annually from two funds used to trade foreign currencies. Some of the funds were used in their racing business and other unrelated ventures, including DLJ Real Estate LLC and Empire Investments LLC.

Christopher Burns, 40, of Georgia, was indicted on charges that he was running a Ponzi scheme through his entities, including Investus Advisers, LLC, Investus Financial, LLC, Dynamic Money, and Peer Connect, LLC. The scheme defrauded investors out of at least $10 million and ran from 2017 to 2020. Burns remains at large, having fled the day before he was scheduled to turn over documents to the SEC.

David J. Bunevacz, of California, had a default judgement entered against him in an action brought by the SEC alleging that he took more than $32 million in investor funds in a cannabis oil related Ponzi scheme. 

Marc Celello, 54, of Georgia, was ordered to pay $8.7 million for his part in a $40 million Ponzi scheme that defrauded about 100 investors. Celello is a disbarred attorney who was the general counsel for Credit Nation Capital LLC run by James Torchia, the mastermind of the scheme who was ultimately acquitted of criminal charges. The scheme involved promissory notes tied to life insurance policies and automobile loans.

Stefan Ciopraga, of Romania, and YieldTrust.ai were sued by state regulators in Montana, Texas, and Alabama in enforcement actions against the cryptocurrency trading platform. Ciopraga claimed that the decentralized application DApp aka Yieldbot is “powered by cutting-edge artificial intelligence.” Yieldbot promised returns of up to 2.2% per day.

Michael J. French, of South Carolina, and his companies MJF Holdings, LLC and MJF Capital LLC, were charged by the SEC on allegations that they ran a fraudulent scheme that defrauded over 400 investors out of more than $20 million. French promised returns of 12% from loans to small businesses or investments in commercial loans on a fractional basis. The scheme ran for two years, and French used at least $13.2 million on personal expenses and to make Ponzi payments to earlier investors. 

Harvest Keeper, Visque Capital, Coinbot, and QuantFund, along with Maxpread Technologies and its CEO Jan Gregory Cerato were the subject of cease and desist orders from the California Department of Financial Protection and Innovation. The companies are all cryptocurrency companies using artificial intelligence technology.

Michael R. Kuntz, of North Dakota, and his entities, National Sports Opportunity Partners, LLC and ICON Investment Group, LLC were accused of running Ponzi scheme. Jeremy L. Carlson operated and controlled Jamieson Capital Financial, LLC and he represented himself as Treasurer for National Sports Opportunity Partners, LLC.

Rand Heckler, 67, pleaded guilty to charges in connection with a $1 million Ponzi scheme. Heckler persuaded friends to invest in a hedge fund that he was managing that was invested in stocks.

Joshua David Nicholas was ordered to pay $300,000 as part of a consent judgment with the SEC in connection with a $40 million Ponzi scheme run through Empires Consulting Corp. The scheme involved a cryptocurrency platform called EmpiresX. Nicholas was previously sentenced to 51 months in prison in connection with the scheme run with alleged co-conspirators, Emerson Pires and Flavio Goncalves.

Rashawn Russell, 27, of New York, was indicted on charges that he was running a crypto Ponzi scheme. Russell guaranteed returns to investors, sometimes promising up to 25%. He falsified bank statements and created fake wire transfer confirmations.

Johann Steynberg was ordered to pay $1.73 billion in restitution to defrauded victims and another $1.73 billion in penalties in connection with the Mirror Trading International Ponzi scheme. The Bitcoin investment platform operated in South Africa and Australia and has been declared a Ponzi scheme. Over $589 million worth of cryptocurrency vanished from the firm, and at least 23,000 victims in the U.S, were impacted by the scheme.

Charles Winn LLC, Aaron David Scott-Britten (aka Aaron David aka Aaron Scott, aka Aaron David K. Britten), Ohran Emmanuel Stewart aka Elliott Stewart, Casey Alexander, and Charlie Jake Smith, were sued by the SEC for allegedly running an $8.5 million Ponzi scheme. The scheme involved investments in the sale of fine wine to at least 121 investors.  The co-defendants were to buy investment-grade wines for the investors, sell the wine at a profit, and share a portion of the profits with the investors. The investors were promised returns between 10% and 45%.

INTERNATIONAL PONZI SCHEME NEWS 

India

Nilish Kumar Kar was arrested in connection an alleged online Ponzi scheme run through Cloud-Fut. The scheme defrauded more than 80,000 investors.

Sachin Pal, Ankush Singh and Kuldeep were arrested on charges that they were operating a Ponzi scheme through www.r46.in. They promised commissions of 15% to 20% through a digital marketing site.

Sri Lanka

The accounts of the directors of OnmaxDT Ltd. were frozen in connection with an alleged crypto Ponzi scheme. The accounts were opened in connection with the Binance.com scheme. Accounts frozen were in the following names: Dhananjaya Gayan, Sampath Sandaruwan Lenaduwage, Saranga Randika Jayatissa,Vikramapeli Gedera Chandrakanti and Kahadawa Arachchige Athula Indika Sampath.

March 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for March 2023. This month revealed at least 13 new Ponzi schemes, 5 guilty pleas and over 30 years of new prison sentences. The average age for the alleged Ponzi schemers was approximately 48. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Matthew Beasley, 50, was indicted on charges relating to an alleged Ponzi scheme that took in about $460 million from more than 600 investors. Beasley was charged last year with one count of assault on a federal officer for pointing a gun at an FBI agent when investigating Beasley. The scheme involved the supposed purchase of insurance tort settlements where plaintiffs in personal injury lawsuits wanted to borrow money against their pending settlements with insurance companies. Investors were promised returns of at least 12.5% every 90 days. Beasley used the money to buy luxury homes, cars, and to pay for other personal expenses.

Wynn Charlesbois was indicted on new charges relating to an alleged Ponzi scheme that defrauded at least 39 investors out of $5.3 million. Charlesbois has pleaded not guilty to charges that he ran a Ponzi scheme involving loans, subscription agreements, co-investments, and participation investments. 

Ryan Crawford aka Brody, 30, of Florida was charged in connection with an alleged scheme that took in $800,000 from investors. Crawford was to invest the funds in cryptocurrency and stocks, but instead spent the money on luxury rental cars and gambling. 

Garrett Elder, 30, of Alaska, was criminally charged in connection with a scheme run through Tycoon Trading LLC, The Daily Bread Fund, LLC, and other related entities. Authorities allege that they defrauded 130 investors out of approximately $25 million. Elder brought in about $30 million of investor funds, representing he was making money in securities and foreign currencies. He allegedly used some of the money to buy himself real estate, a boar, a camper and jewelry, among other things.

Yossi Engel, 35, was indicted on charges that he ran a $47 million Ponzi scheme that defrauded mostly Orthodox Jews. Engel had fled to Israel in 2021 but was arrested in Los Angeles this month. Engel promised returns from his company iWitness Tech the supposed purchase and installation of security cameras as a means of protection as antisemitic incidents were rising in the U.S. He also said he would use their funds to purchase renovate and sell property in Israel.

John Erasmus Frimpong, 42, was sentenced to 10 years in prison and Arley Ray Johnson, 63, was sentenced to 6 years in connection with a $28 million Ponzi scheme. The third co-conspirator, Dennis Jali, fled to South Africa in 2019. The three were pastors who ran a fictitious financial literacy and wealth management firm called The Smart Partners LLC, doing business as 1st Million LLC or 1st Million Dollars. The scheme promised investors monthly returns as high as 35% in foreign exchange and cryptocurrency ventures. At least 1,200 investors were defrauded. 

Daniel Eric Jay, 46, pleaded guilty to charges that he worked with reality TV star Maurice Fayne aka Arkansas Mo, 39, and others to run a Ponzi scheme through Flame Trucking LLC. The scheme defrauded more than 20 people. Jay also assisted Fayne in obtaining a $3.7 million Paycheck Protection Program loan by providing false financial information with the loan application. 

Min Woo Kang aka Kevin Kang, of Florida, and BKCoin Management LLC were sued by the SEC and the subject of an asset freeze, as revealed in unsealed court documents. The scheme involved $100 million taken from 55 investors, and the asset freeze also involved BKCoin Capital; BK Offshore Fund, Ltd.; BKCoin Multi-Strategy Master Fund, Ltd.; BKCoin Multi-Strategy Fund, LP; BKCoin Multi-Strategy Fund Ltd.; and Bison Digital LLC. Investors were told their funds would be used for crypto asset trading. The SEC is seeking disgorgement from Bison Digital LLC, which allegedly received $12 million from the investors. 

Gregory D. Lone, 55, was sentenced to 8 years in connection with a Ponzi scheme run through Paramount Financial Advisors from 2016 through 2019.

Aaron Cain McKnight, 48, and his entities, BPM Global Investments LLC and BPM Asset Management LLC were charged by the SEC in connection with an alleged Ponzi scheme that defrauded at least 28 investors out of more than $8.4 million. The complaint also charges Sherry Rebekka Sims, Harmony Brooke McKnight, Kenneth Miller, 72, and Frost & Miller with aiding and abetting certain of the alleged violations, and names Timothy Neher and his company, Accelerated Venture Partners, LLC, as relief defendants.

Franklin Ray, 51, of Michigan, pleaded guilty to charges relating to a $40 million Ponzi scheme run through his trucking business known as CSA Business Solutions LLC. Ray promised investors 77% of the net income from the operations of trucks that would perform delivery services for multinational e-commerce and shipping companies. Approximately 275 investors invested in the scheme. Ray claimed to have purchased over 2,00 trucks with the investors’ funds but in reality only operated a few trucks and had minimal revenue from trucking activities.

Pablo Renato Rodriguez pleaded guilty to charges relating to a crypto Ponzi scheme run through AirBit Club. AirBit was a purported cryptocurrency mining and trading platform and brought in more than $100 million. Gutemberg Dos Santos pleaded guilty in 2021. Scott Hughes, Cecilia Millan, Karina Chairez, and Jackie Aguilar have also pleaded guilty in connection with the scheme.

David Schamens, 65, of North Carolina, was indicted in connection with an alleged $7 million Ponzi scheme run through TD Trading LLC, TFG Trading Fund LLC, Tradestream Analytics LTD, Tradedesk Financial Group Inc., and others. Schamens promised returns of 12% to 30% from investments in Tradestream Algo Fund, an algorithm-based trading pool. The scheme defrauded at least 25 individuals out of approximately $7 million.

Noel Strachan, of Florida, was indicted on charges that he, along with 10 others, defrauded thousands of Jamaicans out of hundreds of millions of dollars. Strachan, ran the scheme along with Omar Etayem aka Omar Rivera, Odain March, Yegisibet Benli aka Lisa Benli, Yunior Muro, Michael Pardos aka Mario Cruise aka Gangster Mike, Anthony Jonas, Javier Arguelles aka Cuba, Marlon Foster, Demal Cheeks, and Derrol Scafe. They stole or fraudulently obtained high end vehicles and either sold them or used them as collateral for loans. Strachan is the former head of now-defunct Worldwise Partners, that ran an unregulated alternative investment scheme over a decade ago. 

David J. Varrone, 56, was sentenced to 9 years in prison after pleading guilty to a Ponzi scheme in which he defrauded more than 40 investors out of about $3 million. His wife, Sherry D. Varrone, also pleaded guilty to her role in the scheme. The scheme was run through The Credit Engineers, Inc. from 2018 to 2021 and offered returns to investors from short-term investments linked to hedge funds. Varrone helped investors apply for high-interest, short-term loans and then the victims leased the proceeds to Varrone and his business. 

Stephen Keith Woodard, Sr., of Hawaii was charged by the SEC in connection with an alleged Ponzi scheme that he was running as an unregistered investment adviser.  Woodard raised approximately $6 million from about 30 investors who purchased promissory notes from Morganwood Ltd. Woodard promised a risk-free trading strategy.

John J. Woods, 58, of Georgia, was charged and pleaded guilty to a Ponzi scheme run through Horizon Private Equity III that brought in more than $110 million from more than 400 investors. A final judgment was also entered against Woods in an action by the SEC that was brought in 2021. Woods used Horizon to purchase investment advisor, Livingston Group Asset Management Company dba Southport Capital. Woods had promised investors 6% to 7% annual interest paid in monthly installments, and investors lost over $25 million in the scheme. 

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Sabrina Ling Huei Wei, Justin Colin Villarin and James Bernard Law were ordered to pay $1.5 million in sanctions and were banned from the securities industry in connection a $15 million Ponzi run through DFRF Enterprises LLC that defrauded more than 1,400 investors. Investors had been promised returns from supposed gold-mining operations in Mali and Brazil.

England

Anthony Constantinou was accused of running a Ponzi scheme through Capital World Markets Ltd. that defrauded investors out of $61.7 million. 

Egypt

Authorities arrested 29 people in an alleged criminal network that stole LE 19 million through a cloud mining scam called HoggPool.  The HoggPool platform supposedly invested in cryptocurrency mining activities and promised users the possibility to rent “mining machines” to receive a daily profit of around 10%.

India

Harchand Singh Gill, a director of the Pearls Group, was arrested in connection with the Ponzi scheme founded by Nirmal Singh Bhangoo. The scheme had involved promising investors land in exchange for their investments, and over Rs 60,000 was stolen from investors.  Gill was the director and shareholder of PGF, a Pearls Group Company.

Authorities raided 15 locations in connection with an alleged Ponzi scheme run by Lokesh Jain and Karthik Jain. The scheme promised 12% returns and ran from 2005 to 2016.

Authorities are looking for Md. Saif, a man accused of running an international Ponzi scheme. Rustam Khan and Md. Hakim, the directors of Hakim and Rustam Fabrics Private Limited, were arrested in February. The scheme involved a betting app known as “18football.com.” Naveen Poriwar, the head of Edudaddy Institute of Advanced Studies Private Limited, was arrested in connection with the online betting scheme. 

Akshay Sanjay Dhanuka, 32, was arrested in connection with an alleged online Ponzi scheme that brought in more than Rs 40 crore in 10 days. 

Israel

Michael Ben-Ari aka Michael Greenfeld was convicted in connection the operation of a $150 million Ponzi scheme run through EGFE Israel Ltd. that defrauded 1,000 investors in both the U.S. and Israel. He has been dubbed “the Israeli Madoff.”

Nigeria

Barmise Samson Ajetunmobi, the owner of Imagine Global Holding Company Ltd. and Imagine Global Solutions was arrested while trying to board a flight to the U.K. Barmise and his wife, Elizabeth Ajetunmobi, allegedly defrauded investors out billions of naira. They promised investors 10% returns monthly from supposed microloans to small and medium-sized companies and low-income workers in Africa. They used their company, TFS Finance Ltd., to lure in over 90,000 investors.

Scotland

Alistair Greig, 69, was jailed in connection with a £13m fraud. Greig had represented that he would place money in a short-term deposit scheme with the Royal Bank of Scotland for fixed periods of time. A total of 165 victims were identified. Greig used the money on a holiday home, a classic car business, and a Bentley and Range Rover, among other things.

Vietnam

Management of Hanoi firm Bankland were arrested on allegations that they defrauded 4,000 people in a Ponzi scheme. Chairman Quan Van Duong, CEO Nguyen This Nhu, Vu Due Tinh, Nguyen Due Minh, and Nguyen Van Minh were arrested in connection with the scheme. The company represented that it was a property developer and car trader and promised returns of 43.2%. In reality, the company did not do any business.

February 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for February 2023. This month revealed at least 7 new Ponzi schemes, 2 guilty pleas and over 29 years of new prison sentences. The average age for the alleged Ponzi schemers was approximately 54. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Eddy Alexandre, 51, pleaded guilty in connection with an alleged Ponzi scheme run through EminiFX. The scheme involved a cryptocurrency and forex trading platform that promised investors 5% weekly returns that were supposedly generated through a secretive robo-advising technology. Alexandre has agreed to forfeit $249 million that was obtained from investors.

Gilbert Armenta, 59, was sentenced to 5 years in prison in connection with the Onecoin scheme. Armenta is the former boyfriend of the founder of Onecoin, Ruja Ignatova. Armenta helped launder $300 million from the crypto Ponzi scheme. 

Ray Brewer, 66, pleaded guilty to charges that he ran a Ponzi scheme involving cow manure. Brewer stole $8.7 million in connection with a scheme in which he claimed that he built anaerobic digesters on dairies in California that used microorganisms to break down biodegradable material, and turned it into methane. Brewer represented that he could then sell the gas on the open market. Investors were promised 66% of net profits and tax incentives.

Marcus Todd Brisco, of Hawaii, and his companies Yas Castellum LLC and Yas Castellum Financial LLC, were charged by the CFTC along with Tin Quoc Tran of Texas, Francisco Story of Utah, Fredirick “Ted” Safranko of Canada, Michael Shannon Sims, and SAEG Capital General Management LP. Tran was allegedly operating a fraudulent commodity pool scam that involved over $144 million taken from 913 pool participants with promises of returns from trading foreign exchange or margined or leveraged gold-U.S. dollar pairs. Brisco and his companies allegedly made misrepresentations to at least 43 pool participants through one company and to at least 57 participants through another, and then funneled the money to a Tran-controlled entity.

Ramon Salvador Delgado-Gomez aka Ramon S. Gomez, and his companies FX Latino and FXL Investment PR LLC, along with Walmy Rivera-Santiago and her company JRH Services Inc., and Hector Javier Santos-Pagan and his company Infinity Investment Construction Management Corp. were sued by the CFTC on allegations that they were running a Ponzi scheme involving more than $27 million. The scheme involved pooled investments in retail foreign currency trading and targeted over 2,000 investors in Puerto Rico and the U.S. 

John K. Eckerd, 58, of Texas, was indicted along with Afif Baltagi, 45, in connection with an alleged Ponzi scheme involving the financing of giant tires used on mining and earth-moving vehicles. More than 50 investors were defrauded in the scheme involve $50 million. Eckerd and his co-conspirators represented that they had access to heavily discounted tires that they could sell at full price to buyers and could generate returns of up to 20%. Prosecutors say that almost no tires were actually bought and sold. Eckerd previously pleaded guilty to an unrelated scheme to launder money. Jason E. Adkins, 46, was previously convicted and sentenced in connection with the scheme. Todd Wilkin, 60, was also previously convicted in connection with the scheme.

Amberjit Endow has been accused of running a more than $41 million investment fraud while working at Deloitte in Australia as a partner. The alleged scheme was run through his private company, Endow Family Cap, which is now under investigation. Endow promised investors returns of 39.02% in 6 months from the supposed purchase of Indian government-issued bonds. The bonds were purportedly linked to a large government infrastructure program that is improving India’s rural road network.

Joseph W. Floyd, IV and his brother William F. Floyd Jr., of North Carolina, were sentenced to 5 years in prison in connection with a Ponzi scheme they ran through their family insurance business, Floyd Insurance Agency. They took in more than $20 million through a supposed loan program in which 150 investors were given promissory notes and promised returns and redemptions upon demand.

Ryan Guidry, 45, was sentenced to 6 years and 6 months in prison for his role in the DC Solar Ponzi scheme. Guidry became vice president of operations in 2015, and prosecutors alleged that he knew that investors were being defrauded. The scheme was run by Jeff Carpoff, 52, and his wife Paulette Carpoff, 49. DC Solar manufactured solar generator units and claimed there were favorable federal tax benefits from investments in alternative energy, but the company sold more solar generators than they manufactured and falsified documents to conceal the fraud. Jeff Carpoff was sentence to 30 years, Paulette Carpoff was sentenced to 11 years and 3 months, and others have also been sentenced as follows:  Joseph W. Bayliss, 47, was sentenced to 3 years, Robert A. Karman, 45, was sentenced to 6 years, and Alan Hansen was sentenced to 8 years. Robert J. Roach, 55, pleaded guilty and is awaiting sentencing.

Vladimir Okhotniko aka Lado, Olena Oblamska aka Lola Ferrari, Mikhail Sergeev aka Mike Money aka Gleb aka Gleb Million, and Sergey Maslakov were charged in Oregon on allegations that they stole more than $340 million in connection with a cryptocurrency Ponzi scheme known as Forsage. The four and previously been charged along with 7 others by the SEC in connection with the alleged scheme that was a purportedly decentralized finance (DeFi) cryptocurrency investment platform. They used “smart contracts” which are self-executing contracts on the blockchain so that earlier investors would be paid money as soon as an investor would buy a slot in a contract.

Jeffrey Soberman Parket, 59, of New York, pleaded guilty in connection with a $65 million Ponzi scheme that led to over $37 million in victim losses. Parket is a former bond trader and hedge fund founder and admitted to forging and falsifying documents to bring in more than $65 million in loans supposedly for short-terms funding for investment opportunities or to buy real estate. The scheme ran for six years.

Martin Silver, 65, was sentenced to 13 months in connection with a $100 million Ponzi scheme run through International Investment Group LLC. His co-conspirator, David Hu, was previously sentenced to 12 years. The scheme involved over-valuing distressed loans and creating falsified documents and fake loans to hide losses. The company supposedly specialized in global trade financing, providing loans to small and medium-sized businesses in Central and South America using coffee, fish, and other food products as collateral. 

Reva Joyce Stachniw, 71, and Ron Throgmartin, 59, were each sentenced to 6 years in prison and ordered to pay more than $35 million in restitution and forfeitures. They promised 10% to 20% returns and raised $650 million by promising profits from a cattle business and a marijuana business known as Universal Herbs LLC in Colorado. The scheme ran from 2017 through 2019 and was operated along with Mark Ray who pleaded guilty in 2020.

Armen A. Temurian, of California, and Vista Network Technologies were sued by the CFTC on allegations that they were running a Ponzi scheme involving Bitcoin. The scheme involved $7 million, and investors were promised returns from trading of digital assets using “robot traders” which did not exist. Investors were promised a 2.5% daily return or “double in just 80 days.”

INTERNATIONAL PONZI SCHEME NEWS 

Australia

David Spinina was charged in connection with an alleged $180 million foreign exchange Ponzi scheme run through Courtenay House. Authorities allege that Spinina defrauded at least 585 investors, promising them returns from foreign exchange and futures markets. Tony Iervasi, the mastermind behind the Courtenay House scheme, was found guilty in 2022, and Athan Papoulias pleaded guilty just after that.  

Canada

Colin Murphy, 26, was accused of operating a Ponzi scheme within a Ponzi scheme. Murphy was allegedly working with Aiden Pleterski in connection with a $35 million scheme. Murphy allegedly raised over $850,000 for the cryptocurrency and foreign exchange trading company and showed investors his Porsche and Lamborghini as evidence of the returns on the investment. Murphy also stored boxes of cash at his grandfather’s house which he claimed were returns stored for other investors.

Christopher Uitvugt was permanently banned by authorities from working in the securities field or in the investment market. Uitvugt was the CEO of Next Level Investments and ran a foreign exchange scheme that promised 550% returns on a three-month term investment.

India

Jagdish Mishra was convicted and sentenced to 5 years in prison in connection with a Ponzi scheme run through Raj Godson Services Private Limited.

Authorities arrested two directors of Hakim & Rustam Fabrics Private Limited on allegations that they defrauded more than 800 investors in connection with a football betting and gaming App.

Philippines

Authorities warned against investing in what is alleged to be Ponzi schemes run through Oyala, which is an unregistered entity not licensed to sell investments to the public. Oyala supposedly invested in retail, education, real estate, banking, telecommunications, water infrastructure, renewable energy, electronics, information technology, automotive, healthcare, management, and business process outsourcing.  The scheme promised 30% in a stable products investment program, 5% in welfare products, and 2% for indirect recommendations.

Authorities warned that Meta Trade is operating as a Ponzi scheme which promised 30% returns after 5 days, 70% after 10 days, and 400% after 30 days.

Authorities warned that BKC Trading is a Ponzi scheme that promises between 12% and 36% returns within three to six months.

South Africa

Dennis Mbongeni Jali, a pastor wanted by the FBI, was arrested in connection with a $28 million scheme run through Forex Billionaires Club. Jali’s co-conspirators, John Frimpong and Arley Johnson, 63, posed as pastors as well, encouraging people to invest in a business that would supposedly help churches and congregants make money. The men ran an investment company called The Smart Partners LLC which operated 1st Million or 1st Million Dollars.

Thailand

Prosecutors indicted 8 people, including Pattanapon Minthakhin and his girlfriend, Suteewan Thaweesin, in connection with the Forex-3D alleged Ponzi scheme. 

January 2023 Ponzi Scheme Roundup

Below is a summary of the activity reported for January 2023.

The start of 2023 saw at least 7 new Ponzi schemes reported worldwide, and at least 7 new criminal sentences were imposed for a total of about 32 years. There was also 1 guilty pleas and 3 criminal convictions. The average age for the alleged Ponzi schemers was approximately 49. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Gregory Altieri, 55, was ordered to pay $23 million to the SEC in connection with a Ponzi scheme that raised almost $70 million from at least 80 investors, most of whom were firefighters and police officers.  The scheme promised returns ranging from 30% to 100% from a jewelry business. 

Charles Richard Burgess aka Dick Burgess, 67, of Vancouver, was sentenced to 6 years and 3 months in prison for a Ponzi scheme that defrauded 32 investors out of $4.3 million. Burgess had pleaded guilty, selling 64 investors $13.6 million in unregistered investments. He took more than the 50% of the pool profits that he represented was his fee, but tried to blame COVID-19 for the loss of funds.

Carl Carro, 62, and James Doyle, 74, were sentenced in connection with a Ponzi scheme run through Endeavor Management Solutions and Endeavor Consultancy. Carro was sentenced to 4 to 8 years and Doyle to 5 years’ probation. They took in over $1,000,000 from more than 50 investors. Endeavor was supposedly a headhunting firm hired by prestigious clients to find candidates for openings on their boards of directors. Carro and Doyle represented that the investor funds would be held in an untouched cash reserve account that held over $1 million, and investors were guaranteed a 10% to 20% return after 30 days. They spent over $500,000 of the funds on personal expenses and to pay returns to earlier investors. 

Yossi Engel, 35, of California, was sued by the SEC on allegations that he ran a $47 million Ponzi scheme through iWitness Tech LLC that targeted Orthodox Jewish community members from December 2018 to January 2021. Engel represented that he needed capital for his business installing security cameras and that investors would receive returns form fees generated by the business. iWitness was never profitable and only ever brought in about $20,000. Engel admitted to running a Ponzi scheme in 2021 and then fled to Israel. Engel spent the funds at casinos, flying on private jets, and funding a lavish lifestyle.

Arley Ray Johnson, 63, of Maryland, was sentenced to 6½ years in prison in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company. Johnson conspired with Dennis Mbongeni Jali, 37, and John Erasmus Frimpong, 42, to defraud investors through several related entities including The Smart Partners LLC, which did business as 1st Million Dollars or 1st Million. The scheme promised monthly returns ranging from 6% to 35%.

Katie Lynn Mancuso, 41, of Tennessee, was sentenced to 5 years and 10 months in prison in connection with a $2.8 million scheme she ran through Gray Area Marketing. Mancuso had falsely represented that her agency had been awarded contracts to perform marketing services for professional athletes and she overstated Gray Area’s assets and receivables. She promised returns within 90 days of 15% to 25%. She solicited funds from at least 26 investors, causing total losses of more than $1.1 million. 

Robert Cortez Marshall, 43, was sentenced to 2 years and 10 months in prison in connection with a Ponzi scheme run through R.B.J. Generational Wealth Management LLC dba Adz on Wheelz. The scheme solicited more than $5 million from more than 200 investors. Marshall represented that Adz on Wheelz owned and operated a fleet of luxury vehicles that could be customized for digital advertising and that the company received millions of dollars in contracts from advertisers. Investors were promised guaranteed weekly returns and told they could cancel anytime and receive a refund of their investment. 

Austin Danger Ellison-Meade, 24, was sued by the SEC on allegations that he defrauded 31 investors out of $2.8 million. Ellison-Meade represented he was using a proprietary trading algorithm that he developed and that he was the managing partner of an investment club and pooled investment vehicle called Baycap.io. The SEC alleges that Ellison-Meade did not use the funds to invest but represented to investors that “this year we have a projection of around 800% returns.” 

Kumar Arun Neppalli, 56, was indicted on 23 charges relating to an alleged Ponzi scheme that targeted the Indian American community in North Carolina. Neppalli, a native of India, allegedly defrauded 15 investors out of $1.9 million in connection with business loans and 12 investors out of $900,000 in a real estate development scheme in North Carolina.

Nestor Nuñez a/k/a Salvador Molina, 64, was arrested in Spain on fraud charges, and Ramon Perez, 40, surrendered in connection with an alleged cryptocurrency Ponzi scheme known as Forcount. Last month, criminal charges were brought against Francisley Da Silva, Juan Tacuri, and Antonia Perez Hernandez in connection with the scheme. The scheme was based in Brazil and defrauded Spanish-speaking investors. Perez is accused of laundering proceeds through shell companies and real estate. Nunez is accused of being an actor paid by Da Silva to present himself as Forcount’s CEO using the alias Salvador Molina. Jose Ramiro Coronado Reyes has also already been charged in connection with the scheme.

Judith Dianne Paris-Pinder, 49, of Florida, was sentenced to 4 years in prison in connection with a Ponzi scheme that defrauded more than 500 people out of $2.4 million. Paris-Pinder was president of Pinder Associations Inc. and took in about $4.6 million from investors under the pretense that she represented litigation plaintiffs who had settled claims and were just awaiting payouts from insurance companies. Paris-Pinder solicited funds from “hard money lenders” to finance payments to the plaintiffs pending payment of the settlement checks, at which time she represented she could pay returns as high as 50%. She previously pleaded guilty and admitted that she did not work with lawyers and that there were no settlement agreements.

Abner Tinoco, 27, of Texas, pleaded guilty to charges relating to his operation of a Ponzi scheme. The scheme brought in about $9 million, and Tinoco spent about half of that on personal expenses including luxury cars, private jets, real estate, and jewelry. Tinoco represented that he would invest their funds in cryptocurrency and foreign exchange markets. The CFTC had previously reported that Tinoco misappropriated over $7.2 million from at least 322 investors.

INTERNATIONAL PONZI SCHEME NEWS 

India

MD Nurul Hague, Khagokpam Jogeshwari Devi, and Nongmaithem Sharmila Devi were found guilty of running a Ponzi scheme through MDFI. The mastermind’s father-in-law, Khagokpam Kham ba Singh, and brother-in-law, Khagokpam Naoba Singh, are also under investigation.

Authorities arrested Sanasam Jacky Singh, the managing director of Lamjingba Group of companies, in connection with an alleged Ponzi scheme. The scheme allegedly took in more than Rs 580 crore with a promise of exorbitant returns.

Sheikh Sadiq Ali, Yogesh N., Pramod Gopinath, and Sunil Joshi were arrested in connection with an alleged Ponzi scheme run through E-Biotorium Network Private Limited that received investment funds from over 1,000 customers. 

Philippines

Authorities issued a warning against investing in Ground Zero Poultry Agricultural Corporation. The SEC warned that the company “is enticing the public to participate in its poultry farm pursuits” and stated that investors could invest P20,000 with 36% returns and up to 80% guaranteed returns for lockup periods of 6 months or 12 months.

The Securities and Exchange Commission shut down Silverloin Livestock Trading Corp. on allegations that it was running a Ponzi scheme. The scheme promised returns of 2.3% per day or 35% after 15 days. Criminal charges were filed in December 2022 against CEO Ryan Cagod Ladoing, Renan Lara Ladoing, Rosemarie Alvarez Guzman, Neña Ewayan Algoy, John Paul Dellara Lopez and Michael Villalobos Berja.

Singapore

Daryl Cai Yonghui, 32, was arrested in Thailand in connection with the Forex-3D Ponzi scheme. The scheme defrauded thousands of investors out of more than $608 million. Dozens have been arrested in connection with the scheme, and Eddy Polgari is still at large. Forex-3D founder Apirak Kothi was arrested a year ago.

Ong Jian Zhen was arrested in Thailand and is wanted in Singapore in connection with an alleged Ponzi scheme.

Thailand

Police issued 11 arrest warrants in connection with the dietary supplement company Primaya, including for Pichnaree Tantiwit aka May Primaya, the CEO of Primaya. The charges related to wildly exaggerated advertisements for the investment scheme on TikTok and other social media platforms. The company claimed that investors could earn up to 15 million baht in 3 months from an investment of 6,000 baht.