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.
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