December 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for December 2023. Eleven Ponzi schemes hit the news for the first time this month. There were 3 life sentences imposed along with more than 37 years of prison sentences for Ponzi schemers, and 2 guilty pleas were entered. The average age of the fraudsters was about 46 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Henry Abdo, 46, and Florida-based Titanium Capital LLC were charged by the SEC with operating a Ponzi scheme that raised at least $5.3 million. Carol Ann Barsh was also sued for her role in soliciting investors, and Abdo’s wife, Ganna Migulina, and relative Elias Abdo, were also named in the complaint. They misrepresented that funds would be invested in a “Multi Currency Investment Fund” backed by a proprietary currency exchange. They claimed that the investment had never lost money and generated up to 10% compounded interest for a five-year investment. Abdo was also criminally charged and has pleaded not guilty.

Alexandria Porter Bovee aka Aia Montgomer aka Alexandria Jo-Marie Porter, 37, of Nevada, was barred by FINRA due to her ties to Integrated National Resources dba WeedGenics, a cannabis company that was operating a Ponzi scheme. Bovee was named as a relief defendant in the SEC’s case against WeedGenics and its operators Rolf Max Hirschmann aka Max Bergmann, 52, and Patrick Earl Williams, 34. The scheme raised about $61.7 million from about 350 investors.

Stephen Burton, 58, pleaded not guilty to running an alleged Ponzi scheme with James Wellesley, 56, through Bordeaux Cellars. Burton had been extradited to the United States from Morocco and Wellesley remains in extradition proceedings in Britain. The two claimed that they brokered loans to high-net-worth wine collectors and the loans would be backed by wine stored by Bordeaux Cellars. Nearly $100 million was invested in the scheme.

David Carmona, 40, of New York, pleaded guilty to charges relating to his Ponzi scheme known as IcomTech. The scheme involved a cryptocurrency scam the involved purported mining and trading. Marco Ruiz Ochoa, 35, pleaded guilty earlier this year. Other co-defendants are Juan Arellano, Moses Valdez, David Brend, and Gustavo Rodriguez.

Maria Dulce Pino Dickerson aka Dulce Pino was sued by dozens of investors accusing her of running a Ponzi scheme through Creative Legal Fundings.  Dickerson promised 10% returns from investments in law activities.  The scheme targeted the Filipino community. Dickerson is also part of an IRS criminal investigation.

Tochukwu Abel Edeh, 33, of Nigeria, was sentenced to 3½ years in prison and ordered to pay over $2.5 million in restitution in connection with a Ponzi scheme involving both a used car dealership and cryptocurrency located in Nigeria. Edeh laundered the funds along with co-conspirators, though the U.S. Charles Ochi was previously sentenced to 5 years in prison after pleading guilty to the scheme. 

Diana Mae Fernandez, 37, was charged by the SEC on allegations that she was running a cryptocurrency Ponzi scheme. Fernandez is a self-described “entrepreneur” and promised guaranteed returns as high as 63% from what she represented were investments in cryptocurrency, private and publicly traded companies, and luxury real estate. She raised about $364,000 from at least 20 investors through her entities The Self-Made Success and Diana Mae K, LLC. Fernandez did not invest the funds as promised but used them to pay for her living expenses, a lavish lifestyle, and to make Ponzi payments to earlier investors. She told investors she had more than 15 years of investing experience and had raised $100 million in 25 countries. Fernandez had been criminally charged earlier this year.

Horst Jicha, 64, a German national, was arrested on charges that he masterminded a cryptocurrency Ponzi scheme run through USI-Tech, which is short for United Software Intelligence. The company was purportedly incorporated in the United Arab Emirates and claimed to make “cryptocurrency mining and trading accessible to the average retail investor through its online platform.” The scheme promised 140% returns over 140 days. Jiha had $94 million worth of Bitcoin under his control at the time of his indictment.

Adrian Kawuba, 33, of Massachusetts, pleaded guilty to charges relating to a scheme in which he promised returns from investments in short-term financing of sports ventures in Africa. The scheme involved at least $2.3 million in investor funds. 

Josh Link, 30, of Arizona, Jed Wood, 62, of Texas, and their company, Agridime LLC, were sued by the SEC which obtained an asset freeze and the appointment of a receiver. The SEC alleged that Agridime, which claims to specialize in meat sales, distribution, and animal supply chain management, was engaged in a Ponzi scheme. The defendants promised returns of 15% to 32% from raising cattle and raised at least $191 million for more than 2,100 investors. On its website, Agridime states the company "is an online cattle and agricultural products brokerage company that utilizes a proprietary trading platform to connect buyers and sellers."

Motty Mizrahi, 51, of California, was sentenced to 9 years in prison in connection with a Ponzi scheme that defrauded 40 investors out of $6 million. Mizrahi’s brother, Sassi Misrahi, 58, was convicted earlier in the year, sentenced to 7 years and 3 months, and ordered to pay $4.4 million in restitution. They ran the scheme through MBIG Company and guaranteed returns of 2% to 3% monthly as well as annual returns of 30% to 102%.

Matthew Piercey, 27, was sentenced to 11 years and 3 months in prison in connection with a $35 million Ponzi scheme run through his companies, Family Wealth Legacy and Zolla. When Piercey’s fraud first came to light, he unsuccessfully attempted to evade the FBI in an underwater submersible.

David Gilbert Saffron aka David Gilbert aka Dave Gabe aka Blue Wizard aka Bitcoin Yoda, 51, of Australia, and Vincent Anthony Mazzotta Jr., 52, of California, were charged on allegations that they were running a crypto Ponzi scheme. More than $25 million was invested and investors were promised profits from trading programs that supposedly used an artificial intelligence automated trading bot. The investment programs operated under various names, including Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital. Saffron and Mazzotta created a fictitious entity called the Federal Crypto Reserve and solicited investors to pay the Federal Crypto Reserve to investigate and recover their losses in the investment programs. 

Rodolfo Villareal, 52, of California, pleaded not guilty to charges that he stole about $282,000 in an alleged Ponzi scheme. 

INTERNATIONAL PONZI SCHEME NEWS 

England

Stephen Rae, 63, was sentenced to 7 years in prison in connection with a £2.1 million Ponzi scheme to which he had previously pleaded guilty. The scheme defrauded 16 investors. Rae represented that he was a successful financial advisor and director of Mason Morton Ltd. Instead of investing the money, Rae spent it on himself and his family, living a lavish lifestyle. 

India

Ajeet Maurya, 41, a social influencer, was arrested on allegations that he was running a Ponzi scheme. Maurya is reported to have 2 wives, 9 children and 6 girlfriends.

Ramendu Chattophyay was taken into custody in connection with an alleged Ponzi scheme run through Tower Group.

Simpy Bhardwaj aka Simpy Gaur was arrested on charges that in connection with the bitcoin Ponzi scheme known as Gain Bitcoin Ponzi scheme through Variabletech Pte Ltd. The scheme was run with her husband, Ajay Bharadwaj, and her late brother-in-law, Amit Bharadwaj. The scheme involved over 100,000 investors and promised monthly returns of 10%.

Prince Kumar, the director of Digital Revolution Technologies Limited, was sentenced to 7 years in prison for his role in a Ponzi scheme that that defrauded hundreds of investors by promising false returns from digital products.

Nigeria

Barmise Samson Ajetunmobi and his company, Imagine Global Solution Limited, were charged on allegations that that they were running a Ponzi scheme involving N15 billion. Ajetunmobi pleaded not guilty to the charges.

Philippines

Joel Apolinario, Cristobal R. Baradad, and Joji A. Jusay were sentenced to life imprisonment in connection with the Kapa Community Ministry International Inc. Ponzi scheme. Investors were promised 30% monthly returns on their investments. 

Authorities warned the public against investing in Salon De Pamplona which is soliciting investments without required licenses. The investment program is operated by Ramillo Pamplona Pumbaya, and returns were promised of 15% after 30 days.

South Africa

Jacobus Geldenhuis was fined $143 million for running a Ponzi scheme, he was previously barred from selling financial services or acting as an advisor. 

Thailand

Nattasilp Chaiwisit, 48, and his spouse Nattawanon, 41, were held on charges that they allegedly ran a Ponzi scheme that defrauded 73 people out of about 54 million baht.

Turkey

Secil Erzan, a bank manager of a Denisbank AS branch, was accused of orchestrating a $44 million Ponzi scheme. Erzan promised returns of 250%, and authorities alleged that bags of cash were changing hands at candy shops.

November 2023 Ponzi Scheme Roundup

Below is a summary of Ponzi scheme activity reported for November 2023. Nine new Ponzi schemes hit the news this month and there were more than 35 years of prison sentences imposed on Ponzi schemers and 4 new guilty pleas. The average age of the fraudsters was about 43 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Stanislav Bril, 40, aka Stan Bril aka Slava Bril of Pennsylvania pleaded guilty to running a scheme that stole over $6 million of federal pandemic relief. The scheme was run through Mortgage Consultant Group and took in more than $1 million from investors, promising returns from loans on real estate and construction projects. Bril also fraudulently obtained funds from government programs through Mortgage Consultant Group as well as The Bril Group and SAB Services LLC.

Glen “Big Baby” Davis, 37, and Will Bynum, 40. were convicted in connection with a scheme that defrauded an insurance plan for NBA players and their families. Terrence Williams was sentenced in August to 10 years in prison as the ringleader of the scheme.

Maria Dulce Pino Dickerson and her business Creative Legal Services were sued by authorities in California accusing her of running a Ponzi scheme. Dickerson is alleged to have made misrepresentations to investors and targeted the Filipino community.

Irina Dilkinska, 42, pleaded guilty to charges in connection with the $4 billion One Coin cryptocurrency scheme. OneCoin mastermind Ruja Ignatova is still at large. Dilkinska helped a lawyer launder more than $400 million through a series of fake Cayman Island investment funds.

Garrett Elder, 30, of Alaska, was accused of running a Ponzi-like scheme that allegedly defrauded at least 177 investors. Elder ran two businesses through Tycoon Trading, LLC and Daily Bread Fund, LLC that brought in $30 to $34 million, of which about $25 million was allegedly lost. 

Anthony Farrer, 35, of California, was charged in connection with a Ponzi-like scheme that he ran through his watch company, Timepiece Gentleman. Farrer told clients he would sell their watches on consignment and keep a commission, but Farrer instead sold the watches and kept the proceeds for himself. Other clients would wire money to purchase watches, and Farrer would send a different timepiece than what they requested. He stole about $3 million from at least 20 victims.

Phillip Galles, 57, of Illinois, and his entities, Tyche Asset Management LLC, Tyche Master Fund Ltd, Tyche Asset Trade LLC, Tyche Offshore Fund Ltd., Tyche Onshore Fund LP, Tyche PML Master Fund Ltd., Tyche PML Onshore Fund LP, Tyche Onshore Fund GP LLC, and Tyche Asset Trade LLC had a judgment entered against them for more than $20 million in favor of the CFTC. The CFTC has sued the defendants earlier this year alleging that they were running a Ponzi scheme that fraudulently solicited funds into a commodity pool. Galles promised returns of more than 200% annually from supposed sophisticated technology and strategies to trade commodity futures and options.  About 65 victims suffered losses totaling more than $5.3 million.

Cedric Griffin, 47, remains on the run following the filing of a complaint by the SEC in May that accused him of defrauding 103 investors out of $5.9 million. Griffin ran the scheme through G8 Equity and G8 RE Capital. The SEC was granted additional time to locate Griffin.

Alaa Mohamed Hattab, 35, pleaded guilty to charges that he conspired with Eliyahu “Eli” Weinstein to run a $230 million Ponzi scheme. Two other conspirators, Christopher Anderson, 47, and Richard Curry, 36, previously pleaded guilty in connection with the scheme.

John Karony, 27, Kyle Nagy, 35, and Thomas Smith, 35, were arrested on charges that they were running a Ponzi scheme through SafeMoon and the SafeMoon crypto token. The scheme brought in over $8 billion.

Francius Marganda, an Indonesian national, was extradited from Singapore to face charges in connection with an alleged Ponzi scheme that targeted the Indonesian and Indo-American community. Marganda ran the scheme through Air Travel Ticketing Corp, a discount airline tickets company in New York, as well as MH Lux & Beauty Inc., a purported luxury goods company in California. Two sham programs, called Easy Transfer and Global Transfer, were represented to be short-term, high-interest loan programs, and investors invested more than $23 million with promises of returns as high as 200%.

John A. Masanotti, 40, and his company, Middlesex Mortgage Group, LLC, were charged by the SEC in connection with an alleged Ponzi-like scheme. The scheme took in at least $5.9 million and promised returns from a pooled investment fund called the Middlesex Fund or the MMG Fund.

Sassi Mizrahi, 58, of California, was sentenced to 7 years and 3 months and ordered to pay more than $4.4 million in restitution in connection with a $7 million scheme that defrauded at least 40 investors. His brother, Motty Mizrahi, 51, pleaded guilty in January. The Ponzi scheme was run through MBIG Company, targeted the Orthodox Jewish Israeli community, and promised returns of 2% to 3% per month, with annual returns ranging from 30% to 102%. The funds were not invested, however and were placed in the personal trading accounts of Motty Mizrahi. 

Long Nguyen, 35, of California pleaded guilty to charges relating to a Ponzi scheme that defrauded at least 20 people out of about $2 million. Nguyen told people he was a billionaire and that he was creating a hedge fund for investments in companies that had not yet made an initial public offering. He also promised returns from a real estate investment trust that he said he managed. 

Franklin Ray, 52, of Michigan, was sentenced to 17 years and 8 months in connection with a fraudulent scheme involving $40 million and about 275 investors. He ran the scheme through CSA Business Solutions LLC, representing that he had 4,704 trucks and 4,909 drivers when in reality he only had two trucks and four drivers. The investor funds were supposed to be used to purchase over 2,000 trucks. He promised 77% returns over a seven-year period. The scheme was one of four separate fraudulent schemes run by Ray in a two-year period.

Jon Darrell Seawright, 51, was sentenced to a year and a day in prison and ordered to pay $977,000 in restitution following his guilty plea in connection with the Ponzi scheme run through Alexander Seawright Timber Fund LLC. Seawright ran the scheme with Ted Brent Alexander. They promised returns from the loaning of funds to a timber broker to buy timber rights from landowners and then sell the rights to lumber mills at a higher price. Seawright is a former Baker Donelson partner. 

Craig Sherman, 81, of Florida, was sentenced to two years in prison in connection with a Ponzi scheme. Sherman promised returns of between 6% and 8% in connection with a real estate Ponzi scheme. The scheme brought in close to $7 million.

Jake Soberal, 39, and Imma Olguin Jr., 42, of California, were charged by the SEC in connection with an alleged scheme run through Bitwise Industries, Inc. The scheme raised approximately $70 million from investors. Criminal charges were also filed against Soberal and Olguin in connection with the alleged scheme. They pleaded not guilty to the charges. That they had altered bank statements to inflate the amount of cash that Bitwise had in its account.

Jeffrey H. Tamkin, of California, was indicted on charges that he operated an $8 million Ponzi scheme. Tamkin ran the scheme through Tamkin Development Corporation and the Public Facilities Investment Corporation, promising returns from the development of buildings for public agencies.

Albert Alejandro Tinoco, 27, of Texas, was sentenced to 7 years in prison in connection with a $9 million Ponzi scheme. Tinoco claimed he was investing funds into funds dealing with cryptocurrency and foreign exchange markets, but he only invested less than half of a percent of the investors’ funds.

INTERNATIONAL PONZI SCHEME NEWS 

England

Christopher Hamilton, 64, avoided extradition to the United States in connection with the OneCoin cryptocurrency Ponzi scheme. 

Spencer Steinberg, 46, Michael Strubel, 54, and Jolan Saunders, 40, were sentenced to six years, seven years, and seven years, respectively, in connection with a Ponzi scheme run through Saunders Electrical Wholesalers Limited. They claimed they had won a contract to supply electrical goods to the Olympic Village ahead of the 2012 London games. About £78 million was put into the scheme by about 91 investors.

India

Sushil Kumar Tudu, the head of Solar Techno Alliance, was arrested for his role in the alleged cryptocurrency Ponzi scheme. 

Authorities are investigating an alleged Ponzi scheme run through Universal Trading Solutions.

Authorities busted a cryptocurrency Ponzi scheme called “Yes World Crypto Token” aka Crypto Coin.  Sandeep Choudhary, 40, was arrested in connection with the scheme, along with Basant Pradhan and Manoj Patnaik. Choudary was arrested as he was trying to escape from India to Dubai. The amount involved is estimated to be more than Rs. 200 crore.

Prakash Raj was summoned in connection with an alleged Ponzi scheme linked to Pranav Jewellers. The scheme promised returns from a gold investment scheme involving 100 crore.

South Africa

Brandon Naicker aka Muruvan Egambaram and Abraham “Jason” Pillay were charged in connection with a scheme run through insurance brokerage firms called Infiniti and Branson Capital. They allegedly defrauded investors out of R2 million.

Thailand 

Suteewan “Baitoey” Thaweesin, 35, was released on bail following her arraignment along with her husband Pattanapon Minthakin aka DJ Man in connection with the Forex-3D Ponzi scheme. Forex 3D claimed to be an online dealer in foreign exchange, but thousands of investors were defrauded out of about 2 billion baht. The scheme was masterminded by Apiruk Kothi, who was arrested in 2021.

October 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for October 2023. While 4 new Ponzi schemes came to light this month, there were more than 49 years of prison sentences imposed on Ponzi schemers and there were 5 guilty pleas. The average age of the fraudsters was about 54 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Brett Barber, 44, of California, pleaded guilty to charges relating to a $17 million house-flipping Ponzi scheme. Barber ran the scheme through BNZ Capital One which promised returns between 8% and 10% and later through National American Capital after Barber closed BNZ because authorities were investigating. Another owner of BNZ Capital, Louis Zimmerle, 62, also pleaded guilty.

Darrin Blaine, of Indianna, was the subject of a restraining order in connection with an alleged Ponzi scheme involving the sale of securities. Blaine, an attorney, alleged took $680,000 from investors through his companies, Laser Tech Investment Club and Akamai Physics Inc. Another company, Porrima Photonix Inc, was also used in connection with the scheme.

Thomas Brenner, 60, of Ohio, was sentenced to 10 years and 5 months in prison and ordered to pay more than $3 million in restitution in connection with his role in a $102 million Ponzi scheme run through United RL Capital Services. The scheme defrauded more than 600 investors, and Brenner solicited clients to invest, promising them their money back with interest after 3 years. Brenner previously pleaded guilty to the scheme.

Jason Dodd Bullard, 59, of Minnesota, was sentenced to 4 years and 3 months in connection with a Ponzi scheme run through Bullard Enterprises LLC that defrauded approximately 100 victims out of over $3.1 million. The scheme involved a foreign currency investment program. Angela Romero-Bullard had previously been sued along with Bullard by the SEC in connection with the scheme.

Nayeen Choudhury, 27, pleaded guilty to charges relating to a $9.5 million Ponzi scheme run through his company, Dream Venture Capital Group. Choudry promised high rates of return from supposed investments into trading options, but Choudry instead suffered losses and lost about $5 million in options trading in 2022 and 2023. 

Joseph W. Floyd, IV, 76, of North Carolina, was sentenced to 6½ years in prison and ordered to pay more than $10 million in restitution in connection with a $20 million Ponzi scheme run through Floyd’s Insurance Agency. Floyd’s brother, William F. Floyd, Jr., was previously sentenced. The scheme offered returns to 150 investors through a loan program that promised returns of 6% to 19% and represented that is was a safe investment. 

Scott Hughes, 47, Cecilia Millan, 41, and Karina Chairez, 47, were sentenced in connection with the AirBit Club Ponzi scheme after they pleaded guilty. Hughes received an 18-month sentenced for laundering approximately $18 million. Millan received 5 years and Chairex received one year and one day. Co-founder Pablo Renato Rodriquez was sentenced to 12 years in prison last month. Gutemberg Dos Santos, 48, co-cofounder of AirBit Club, also pleaded guilty in connection with the cryptocurrency Ponzi scheme. Jackie Aguilar, who pleaded guilty, reportedly passed away a few weeks prior to sentencing. AirBit Club guaranteed daily returns from crypto mining and trading and brought in $100 million of investors’ money.

Jeffrey Ikahn aka Jeff Hill aka Jeffrey Santulan, 41, of California, and Safeguard Metals LLC consented to an order finding them liable for a $68 million scheme that defrauded elderly investors. The scheme involved precious metals in which overpriced silver coins were sold to investors. 

Paul Kimmins Lebo, 41, of Ohio, was sentenced to 4 years in prison and ordered to pay $635,000 in connection with a Ponzi scheme that defrauded about 100 people. Lebo promised equity ownership if they invested in his non-operational hedge fund called Paul Kimmins Investments (PKI), LP and promised that investors that their deposits were fully refundable. He previously pleaded guilty to the scheme.

Gopala Krishnan aka GK, Manivannan Shanmugam, and Sakthivel Palani Gounder, along with their company, Nanban Ventures LLC, were sued by the SEC on allegations that they were running a $130 million fraudulent scheme. The scheme allegedly targeted the Indian American community and involved more than 350 investors. Investors were promised returns of more than 100% from options trading.

Ari Lauer, 59, of California, was charged in connection with the DC Solar Ponzi scheme. He has already been sued by the SEC on charges that he aided and abetted the Ponzi scheme run by Jeffrey Carpoff, 52, and Paulette Carpoff, 49. They represented that DC Solar made solar powered mobile generators, and over $912 million was paid into the scheme. Lauer is a lawyer who allegedly assisted in creating documents to hide transfers and conceal the fraud. Jeffrey Carpoff was previously sentenced to 30 years in prison, Paulette Carpoff was sentenced to 11 years, 3 months, and Joseph Bayliss, 48, was sentenced to 3 years in prison.

Long Nguyen, 35, of California, pleaded guilty to charges relating to a Ponzi scheme that defrauded at least 20 people out of almost $2 million. Nguyen falsely claimed he was a billionaire, that he had access to pre-IPO investment opportunities, and that he managed a real estate investment trust.

Darrant Robinson and QYU Holdings Inc. were sued by the CFTC on allegations that they ran a $7.1 million scheme that defrauded at least 30 people into investing in a commodity pool. The CFTC alleges that instead of trading on commodity interests, QYU and Robinson instead deposited the funds into QYU’s corporate bank account and used the money to pay Robinson’s personal expenses including luxury cruises, luxury vehicles, and property purchases. Robinson allegedly created fake trading data and provided false account statements to show consistent profits for the participants. 

Christopher John Pettit, 56, of Texas, pleaded guilty to charges relating to a Ponzi scheme that defrauded investors out of up to $65 million. Pettit is lawyer who engaged in Ponzi-like conduct by taking money from his clients and persuading them to invest in his firm, Chris Pettit and Associates, PC. Pettit promised returns from his firm which provided services such as estate planning, investments and real estate transactions, but he instead used the funds for his personal benefit. Pettit claimed the funds would be used for trustee accounts, high-percentage bonds and 1031 real estate exchanges. 

Volodimyr Pigida, 49, of Florida, was arrested after failing to appear for his sentencing hearing in connection with a $22 million Ponzi scheme that caused $11 million in losses. Pigida and his wife, Marina Bondarenko, operated a "work-at-home" email scheme named Trend Sound Promoter. Pigida was convicted in 2022. Bondarenko pleaded guilty and was sentenced to 3 years and two months in prison in 2019.

Cesar Humberto Pina, 45, of New Jersey, was charged in connection with an alleged Ponzi scheme. Pina’s wife, Jennifer Pina, is also accused in connection with the scheme. The scheme promised returns of 20% to 45% from the alleged purchase, remodel, and sale of certain real estate projects. Raashaun Casey aka DJ Envy was Pina’s business partner and hosted real estate seminars with Pina, but has denied any involvement in the alleged fraudulent scheme. DJ Envy is not named in the criminal charges and has not been accused of any criminal wrongdoing. Pina owned Whairhouse LLC and FromStart2Flip LLC.

Carl Ruderman, 82, pleaded guilty to charges in connection with the 1 Global Capital LLC Ponzi scheme. Ruderman raised about $330 million for the scheme. Co-conspirators who have previously pleaded guilty are Alan Heide, 65, Jan Atlas, 78, Steven Allen Schwartz, 78, and Andrew Ledbetter, 81. 1 Global promised returns from pay day loans to small businesses at high interest rates.

Abner Tinoco, 27, of Texas, was sentenced to 7 years in prison in connection with a Ponzi scheme in which he solicited approximately $9 million into funds dealing with cryptocurrency and foreign exchange markets. 

Michael Wayne Williams, 48, of Florida, pleaded guilty to charges relating to a Ponzi scheme run through Highguard Capital, Guardian Opportunity Fund, and Guardian Opportunity Management. Over $16 million was invested into the scheme that promised returns from investments in the fund. 

INTERNATIONAL PONZI SCHEME NEWS 

Canada

April Vuong and Hao Quach were permanently banned from the capital markets in connection with their fraud convictions relating to a $5.2 million Ponzi scheme.

India

R Sivakumar, 57, was arrested in connection with an alleged Ponzi scheme run through Winstar India City Developers that defrauded 1,686 investors out of 74 crore.

Sangram Keshari Patra was sentenced to three years in prison in connection with a scheme run through Kolkata Weir Industries Ltd. 

Nigeria

BBH Films Nigeria Limited has been accused of running a Ponzi scheme that may have defrauded over 2.7 million Nigerians. BBH claims to be a Nigerian arm of a U.K.-based company, BBH Global. 

Philippines

Authorities have flagged 99 Dragons PH as a Ponzi scheme. The scheme promised guaranteed profits of 125% to 200% in 10 to 30 days.

South Africa

Patrick Stapleton, 66, received a 10-year prison sentence for his role in the Ponzi scheme run through his company, Dynamic Group CC. Stapleton and his son, Michael Stapleton, defrauded factor workers by persuading them to invest in “research” about developing an off-road mining vehicle and their paint company, Umbala Paints. Michael previously pleaded guilty and is serving a 5 year sentence.

Uganda

Authorities have received over 80 complaints from victims of the Capital Chicken Ponzi scheme. The fund promised a 15% monthly profit for amounts invested in the chicken business. Key suspects Pius Wamanga and Ernest Sempebwa are believed to have fled the country.

September 2023 Ponzi Scheme Roundup

Posted by Kathy Bazoian Phelps 

Below is a summary of Ponzi scheme activity reported for September 2023. At least 13  new Ponzi schemes came to light this month. More than 94 years of prison sentences were imposed on Ponzi schemers, and the average age of the fraudsters was about 49 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

Monise François Bien Aimé of Florida and her company MFB 111 Investment LLC were charged by the SEC in connection with an alleged $1.8 million Ponzi scheme that targeted the Haitian American community. The scheme ran from 2021 to 2022 and defrauded at least 170 investors. 

Stephen I. Bailey and his companies, Sapphire Exploration LLC and Harris Exploration, Inc., were charged by the SEC in connection with an alleged oil and gas Ponzi-like scheme that misappropriated $5 million of the $7.8 million raised from investors. 

Bin Hao, 48, and his company, Qidan LLC, a Virginia limited liability company, were charged by the SEC in connection with an alleged fraudulent scheme that raised approximately $10.3 million from at least 60 investors. The scheme, which promised returns of 8% to 25%, targeted the Chinese-American community predominantly in Virginia and Maryland. Investors were promised returns from a Miami-based real estate company.

Gary J. Dragul, 60, of Colorado, was sentenced to 120 days in jail in connection with a scheme run through GDA Real Estate Services. Dragul pleaded guilty earlier this year. The scheme misrepresented that returns would be paid from a shopping center project. Marlin Hershey and Dana Bradley were also charged in connection with the scheme.

Joe Firmage was sued on allegations that he was running a Ponzi scheme involving more than $25 million. Firmage represented that he had devised a new aerospace propulsion technology concept and needed financing for the lab operations until the government contracts were ready to be disbursed.

Tyler G. Gallagher, Leah Donoso, and their company, Regal Assets LLC, were charged by the CFTC and the California Department of Financial Protection and Innovation in connection with an alleged fraudulent $21 million scheme. Regal Assets is a California-based precious metals dealer, and the defendants are accused of diverting funds intended for the purchase of precious metals to pay personal expenses.

Karl Sebastian Greenwood, 46, the co-founder of the OneCoin cryptocurrency Ponzi scheme, was sentenced to 20 years in prison. His partner, Ruja Ignatova, 43, remains at large. OneCoin began in Bulgaria and brought in more than $4 billion from at least 3.5 million people between 2014 and 2016. Greenwood personally made $300 million from the scheme.

Pavel Ramon Ruiz Hernandez aka Pavel Ruiz, 30, of Florida, was sentenced to 9 years and 2 months in prison in connection with a Ponzi scheme run through MJ Capital Funding LLC. Ruiz solicited funds and promised returns from the funding merchant cash advances, a type of short-term financing used by small and medium-sized businesses.  Ruiz brought in over $42.9 million into the scheme that involved $190 million. The MJ Capital scheme was run by Johanna Garcia who has been charged by the SEC. The SEC also sued Steven Fernandez, Monica O'Mealia, Christian Cuesta, and Nathalia Burgos in connection with the scheme, alleging that they deceived investors in helping to raise money for MJ Capital.

Rolf Max Hirschmann aka Max Bergmann was sued along with WeedGenics, Integrated National Resources Inc. in connection with an alleged $62 million Ponzi-like scheme that defrauded approximately 350 investors. WeedGenics offered returns from a supposed marijuana investment opportunity but never owned or operated a cultivation facility as represented. WeedGenics executive is Patrick Earl Williams, a rapper known as “BigRigBaby,” who allegedly spent investor funds on his music career.

Robert J. Jesenik, 63, the former CEO of Aequitas Capital Management, was sentenced to 14 years in prison; Andrew N. MacRitchie, 59, the former executive VP was sentenced to 5 years and 10 months; and Brian K. Rice, 56, an executive VP, was sentenced to 3 years and 1 month in connection with the scheme. The scheme defrauded investors out of $300 million.

Jon Patrick Kubler, Aksarben Evolution, LLC, AV Bhill, LLC, CFH Texas, LLC, Green Saddle, LLC, and Kubler Consulting, LLC, along with relief defendants, Kubler Financial, Inc. and Midwest PEG, LLC, were sued by the SEC in connection with an alleged fraudulent scheme that defrauded at least 56 investors out of approximately $5.6 million. The defendants promised returns from investment opportunities, primarily in commercial real estate, but only a small amount was actually invested.

William Logsdon, 55, of Texas, was sentenced to 9 years in prison for his role in running a Ponzi scheme with his mother-in-law, Jamie Thompson. Thompson had previously pleaded guilty and was sentenced to 5 years in prison.  Logsdan is a lacrosse coach and teacher and persuaded members of his community and family to invest in royalty interests for oil, gas and mineral projects in Texas and New Mexico. The scheme was run through National Royalty Group, or NRG. More than 20 victims were defrauded out of more than $2.1 million.

Muhammad Murtuza Kazmi, MyForex Funds, and Traders Global Group Inc. were sued by the CFTC. The firm claimed to be a retail foreign exchange and commodities trading firm and it took in around $300 million from investors around the world. 

Mirror Trading International was ordered to pay $1.7 billion in restitution in connection with the fraudulent scheme run through the company and by its CEO, Cornelius Steynberg. Almost 30,000 bitcoins were collected from over 23,000 investors in a supposed commodity pool. 

Matthew M. Motil, 43, host of “The Cash Flow King” podcast, was charged by the SEC on allegations that he was running an $11 million Ponzi scheme that defrauded more than 50 people. Motil promised returns from promissory notes that he represented were backed by first mortgages on homes in Ohio. Motil told investors he would renovate, sell, refinance, or rent the properties to generate returns. He allegedly sold the same property to many investors and, in one instance, sold notes to 20 different investors and raised $1.3 million for a property he bought for $47,000.

Marco Ruiz Ochoa, 35, pleaded guilty to charges in connection with the cryptocurrency IcomTech Ponzi scheme. Ochoa was the CEO of the scheme that promised daily returns from a purported cryptocurrency mining and trading business. Carmona Juan Arellano, Moses Valdez, and David Brend were also charged in connection with the scheme.

Pablo Renato Rodriguez, 40, was sentenced to 12 years in prison in connection with the AirBit Club which he co-founded with Gutemberg Dos Santos, 48. Santos and other co-defendants, Soctt Hughes, 47, Celilia Millan, 41, and Karina Chairez, 47, have pleaded guilty. The scheme defrauded investors out of about $100 million.

Armando Gutierrez Rosas and Aras Investment Business Group S.A.P.I de C.V. were charged by the SEC in Texas with fraudulently raising at least $15 million from more than 450 investors. Efren Quiroz, Luis Quiroz, Maria Tolentino, and Diayanira Rendon were also charged for their roles in the alleged fraud. Aras is a Mexico-based company, and the scheme targeted members of the Mexican American community. The scheme promised returns as high as 10% from investments in U.S. real estate and mining operations in Mexico. The funds were not used for investment purposes, and Gutierrez instead used funds for personal expenses including a $2.5 million mansion in Texas.

Michelle Silverstein aka Michelle Silverstein Bisnoff and her company Esos Rings, Inc., were charged by the SEC in connection with an alleged Ponzi-like scheme. They raised $1.95 million from investors for investments in a company that allegedly manufactured and sold wearable rings which functioned as debit cards. They claimed that they owned patents for the smart rings and that Apple was supposedly in the process of buying their company.  

Walker Sumchai, 61, of California, was charged by the SEC in connection an alleged scheme that raised over $13 million from more than 1,000 investors in the Tongan American community. Investors were sold shares in “Tongi Tupe” which Sumchai represented used a secret algorithm to generate guaranteed high returns. Sumchai promised at least a $146,000 return in 16 weeks on a $3,000 investment. The SEC alleged that in reality Tongi Tupe did not generate any returns but that Sumchai was operating a Ponzi scheme. 

The estate of Stephen Romney Swensen, Crew Capital Group LLC, Wendy Swensen, Swensen Capital LLC and Wingman LLC settled claims with the SEC relating to an alleged Ponzi scheme run by the deceased Swensen. The SEC had alleged that Swensen ran the scheme from 2011 through his death in 2022 and that he defrauded more than 50 people out of at least $29.3 million. The scheme solicited funds into Crew Capital, which was supposedly a fund that invested in bank loans and options on the S&P 500 index with guaranteed minimum returns of 5% to 10% annually. Two other defendants in the action, Saria C. Rodriguez and WS Family IP LLC, have not settled. 

Evan Daniel Tromp, 37, was charged in connection with his operations of various company as an alleged Ponzi scheme. The scheme was run through Quanta Capital B.V., Operational and Financial Advisory, LLC, and Quanta Nominee, LLC. Investors were promised high returns from investments in cryptocurrency mining and trading with virtually no risk. 

Robert Wisnicki, 44, of New York pleaded guilty to charges in connection with his operation of an $18.8 million Ponzi scheme in which investors invested in real estate through his law firms, Wisnicki & Associates and Wisnicki Neuhauser LLP. Wisnicki used funds from his firm’s IOLA accounts for noninvestors to cover losses for other clients who had invested in the recommended real estate investments. Wisnicki also took part in an auto insurance fraudulent scheme by laundering proceeds of the scheme.

INTERNATIONAL PONZI SCHEME NEWS 

Canada

Greg Martel was ordered into a personal bankruptcy in connection with proceedings relating to an estimated $226 million run through his company, Shop Your Own Mortgage aka My Mortgage Auction Corp. The scheme involved supposed short term bridge loans to real estate developers, and nearly 1,200 investors were promised returns as high at 100% per year. Martel’s whereabouts remain unknown. Martel was also found guilty of civil contempt in connection with the matter.

Curtis Gordon Quigley, 56, and Kathleen Treadgold, 56, were charged in connection with an alleged Ponzi scheme that took $7.8 million from investors. The scheme was run through Group Venture Inc. and ran from 2008 to 2020, and investors were given promissory notes that guaranteed a return on their investment.  

England

Kenneth Campell was banned from running a business for 14 years following an investigation into his scheme run through HGEC Capital Ltd. The losses to investors were £2.8 million. Investors were told that they were investing in an oil and gas venture in Texas.

India

Authorities are on the lookout for 3 Chinese nationals known as Liu Huan, Wenhui Zheng, and Xu Xiaohu. They are associates of Guanhau Wang, 40, the master mind of the scheme run through 14 companies engaged in cyber-financial frauds. 

Dharmendra Sandu was arrested in connection with the Pearls Agrotech Corporation Ltd. Ponzi scheme. Hirdaypal Singh Dhillon, Sandeep Singh Mahal, and Sandhu were all removed as directors as they had allegedly submitted forced documents.

Agri Gold promoters AV Rama Rao, Seshanaryana Rao, and Hemasundara Varaprasad were charged in connection with the scheme. 

The assets of Ashesh Mehta and his spouse were frozen in connection with an alleged Ponzi scheme run through Bliss Consultants, led by Krishna Hegde. The scheme defrauded over 4,000 investors and promised investors 2.5% profits per month. Mehta and his wife have gone into hiding.

Prabhat Ranjan Biswal and his wife Laxmi Bilasini Biswal were charged in connection with the Seashore Group Ponzi scheme. 

Philippines

Authorities issued a warning about Sprhy Gold Investment/Sprhy Cash Paluwagan stating that it has the characteristics of a Ponzi scheme. Sprhy Gold allegedly solicits investments at a minimum of P5,000 up to P500,000, which is supposed to earn 15% up to 30% after 30 days.   

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.