May 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for May 2025. There were at least 7 new Ponzi schemes revealed this month, 6 guilty pleas, and prison sentences of 48 years. 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. 

Henry Abdo, 48, was sentenced to 15 years in prison and ordered to pay $375,479 in restitution in connection with a $6 million Ponzi scheme run through Abdo’s company, Titanium Capital LLC. The scheme involved a purported foreign exchange platform that guaranteed fixed returns for investors based on supposed proprietary software. The scheme solicited funds from over 200 investors. 

Christopher Aubin, 30, and his girlfriend, Ashley Corcoran, 27, of Rhode Island, were sued by the SEC on allegations that they were running a $2.5 million Ponzi scheme through Anchor State Capital LLC, formerly known as Anchor State Investments LLC, and Anchor State Properties LLC, that defrauded approximately 20 investors out of hundreds of thousands of dollars. Investors were promised returns from supposed short-term, high-interest rate loans.

Efrain Betancourt, Jr., 26, of Florida, pleaded guilty to charges relating to a $66 million Ponzi scheme run through his payday loan company, Sky Group USA, LLC. Sky Group purportedly was in the business of funding small-dollar short term loans to consumer borrowers.

Marcus Todd Brisco, 28, the CEO of Rolly Receipts LLC, was ordered to pay $2 million for his involvement in a $146 million Ponzi scheme run through Yas Castellum LLC and Yas Castellum Financial LLC. Co-defendants are Tin Quoc Tran, Francisco Story, Fredirick Safranko, Michael Sims, and SAEG Capital General Management LP. Brisco ran two fraudulent commodity pools involving retail foreign exchange and commodity transactions.

Patrick Britton-Harr, 41, of South Carolina, was indicted in connection with an alleged scheme through AeroVanti and affiliated entities that was a private car club offering members access to jets. “Top Gun” members each paid $150,000 upfront to secure block flight hours. In return, Britton-Harr allegedly promised to use their money to purchase specific aircraft, in which the Top Gun members would have a securitized interest. Britton-Harr allegedly recruited nearly 100 Top Gun members, who collectively paid nearly $15 million in upfront payments. He did not buy the aircrafts, however, but misappropriated the funds to buy yachts, jewelry and to pay other living expenses. 

Charles “Chas” Carrier, owner of C&C Residential Properties, had his home-flipping franchise of HomeVestors of America accused of operating a Ponzi scheme. Carrier allegedly issued multiple loans against the same properties, some of which he did not own, and failed to record deeds of trust to secure the loans.

Terrence Chalk aka “Dr. Cash,” 62, of Florida, was sentenced to 3 years in connection with a scheme known as Terrence Cash. Chalk marketed his scheme through wealth seminars that he held primarily at Black churches and held himself out as a man of faith. Approximately 28 investors invested approximately $4.8 million. 

Elana Cohen-Roth, 81, of California, was sentenced to 12 years in prison for running a Ponzi scheme that defrauded investors on promises of returns of 10% with no risk. Cohen-Roth is a retired IRS agent.

Cory J. Dawkins, of Iowa, was ordered to pay over $2.4 million in restitution in connection with a Ponzi scheme he ran through Elite Wealth Partners and EWP Permian Basin Fund II, LLC.

Milendophe Duperier, 33, and Vanessa Joseph, 26, of Massachusetts, pleaded guilty to charges that they defrauded investors out of more than $3.2 million in a scheme that promised returns from small business loans. 

David Gentile was sentenced to serve 7 years in prison for the $1.8 billion scheme run through GPB Capital Holdings. Gentile ran the scheme with Jeffry Schneider, who was sentenced to 6 years in prison.

Andrew H. Jacobus was accused by the SEC of running a Ponzi scheme that defrauded about 40 investors, mostly Venezuelan nationals, out of more than $17 million. His companies, Kronus Financial Corporation and Finser International Corporation, were also named in the lawsuit. Jacobus and his companies raised approximately $39.7 million from advisory clients who thought they were investing in securities, including the Corfiser SIMI Fund, later known as the Kronus High Yield Fund, and IPO stocks. 

Adam Jonathan Lowe, 43, of Pennsylvania, was sentenced to more than 6 years in connection with the Ponzi scheme run through Diamond Desk Corp. and PetersenLowe, LLC. Murray Todd Petersen, 73, was sentenced to 9 years in connection with the scheme.  Scott Schager, 63, received 5 years of probation. The scheme involved fancy-colored diamonds that Petersen would sell using deceptive appraisals and promised 5% to 8% returns to investors. 

Lillian Arielle Markowitz, 40, of California, was sentenced to 2 years in prison following a plea agreement for running a Ponzi scheme through My Donor Cycle, Surrogacy Beyond Borders and Expecting Surrogacy. Markowitz took hundreds of thousands of dollars from escrow accounts set up for her clients to pay for surrogacy services. 

Kenneth W. Mattson, 63, of California, was charged by the SEC on allegations that he ran a $46 million Ponzi scheme through his real estate investment business, LeFever Mattson. Mattson allegedly defrauded approximately 200 investors by selling them fake interests in real estate investment limited partnerships. Mattson was also indicted. Mattson offered “off book” investments in Divi Divi Tree LP, among other investments.

Joel J. Natario and Jefferson Scott “Patch” Baker were charged by the SEC on allegations that they were running a $10 million Ponzi scheme that defrauded 23 investors. The scheme involved a purported small-business loan venture.

Matthew Piercey, 48, of California, pleaded guilty to charges related to a $35 million Ponzi scheme. Piercey solicited as an investment advisor in Family Wealth Legacy and Zolla. He falsely promised returns from a trading fund known as “Upvesting Fund.” Piercy tried to evade arrest by attempting to escape in a submersible device, referred to as a “sea scooter” in a lake. 

William Lamar Rhew, III, of North Carolina, pleaded guilty to charges relating to a $20 million Ponzi scheme run through his company, Chadley Capital, LLC. Rhew represented that he would buy accounts receivable at a discount, sell them for a profit, and provide consistently high rates of return in excess of 20% per year. At least 117 investors were defrauded. 

Richard Scheich, of Ohio, pleaded guilty to charges in connection with a Ponzi scheme that involved $72 million of fraudulent investments. Scheich is believed to have defrauded investors out of $9 million.

Joshua Schuster was indicted on charges relating to an alleged $10 million Ponzi-like scheme relatign to real estate development projects in New York. The alleged scheme was run through Silverback Development. Schuster has pleaded not guilty.

Matthew J. Turnipseede, 51, of Nevada, was sentenced to 5 years in prison and ordered to pay approximately $4.7 million in restitution for running a $7.4 million sports betting Ponzi scheme. He defrauded 72 investors. Turnipseede ran the scheme through his betting companies, Edgewize and Moneyline Analytics.

INTERNATIONAL PONZI SCHEME NEWS 

Brazil

Authorities arrested more than 50 people in connection with Operation Fantasos, a cryptocurrency crime organization. Over $280 million was seized. The mastermind of Trade Coin Club, Douver Torres Braga, was extradited from Switzerland to the U.S. earlier this year.

India

Rabindra Prasad Singh, father of accused Amardeep Singh and Sandeep Singh, and Susma Raj, the wife of Sandeep Singh, were arrested in connection with the Falcon Ponzi scheme. They were arrested on charges that they engaged in a scheme that defrauded approximately 34,000 investors. They promised monthly returns of 11% and commissions for adding new members. 

Authorities charged Platinum Hern Pvt. Ltd. with running a Ponzi scheme that allegedly defrauded more than 14,000 victims.

Nigeria

Authorities arrested Sakariya Sadiq, 26, for his involvement in an alleged Ponzi scheme and  for holding 20 people against their will. The scheme was known as Quest International Company.

Authorities issued a warning about TOFRO.com, which holds itself out as a cryptocurrency trading platform. The platform is not registered to solicit investments. 

Authorities issued a warning about PWAN and PWAN MAX, which are not registered to solicit investments or to operate in the Nigerian capital markets.

Thailand

Ngo Thi Theu aka Madam Ngo, 30, a Vietnamese woman wanted by Interpol for her involvement a cryptocurrency scheme, was arrested in Thailand. The scheme promised monthly returns of 20% to 30% from investments in cryptocurrency and foreign exchange trading platforms. The scheme defrauded more than 2,600 individuals.

April 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for April 2025. There were at least 8 new Ponzi schemes revealed this month, 2 guilty pleas, and a single prison sentence of 128 years, plus several others totaling more than 32 years. The average age of the fraudsters was about 50 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

Brazil

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

England

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

Grenada

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

India

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

Malaysia

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

Nigeria

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

Zimbabwe

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

March 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

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

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

Canada

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

India

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

Nigeria

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

South Korea

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

February 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

Turkey

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

England

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

India

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

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

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

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

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

Nigeria

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

Norway

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

January 2025 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

Below is a summary of Ponzi scheme activity reported for January 2025. There were at least 5 new Ponzi schemes revealed this month, 3 guilty pleas, and 2 convictions. Ponzi schemers received more than 66 years of prison sentences this month and the average age of the fraudsters was about 48 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

India

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

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

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

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

Vietnam

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