February 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

England

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

India

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

New Zealand

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

Nigeria

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

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

Venezuela

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

January 2026 Ponzi Scheme Roundup

By Kathy Bazoian Phelps

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

INTERNATIONAL PONZI SCHEME NEWS 

Algeria

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

England

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

India

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

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

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

Nigeria

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

Philippines

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

Singapore

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

South Korea

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