By Kathy Bazoian Phelps
Below is a summary of Ponzi scheme activity reported for May 2026. There were at least 7 new Ponzi schemes revealed this month, 7 guilty pleas, and more than 100 years of prison sentences. 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.
BG Wealth Sharing Ltd was the subject of a warning by the Washington State Department of Financial Institutions that investors should use extreme caution before sending more funds to BG Wealth on concerns that it is running a cryptocurrency scam on a purported trading platform called DSJ Exchange PTY Ltd. The scheme promised high returns and operated through social media recruitment. Investors are being directed to a new platform called HQI Exchange to invest more money. The scheme operates in New Zealand, Tonga, and Australia as well as in the U.S.
Joel Castellanos, of Florida, settled charges with the SEC in connection with the alleged Ponzi scheme run through MJ Capital Funding and MJ Taxes and More. The scheme raised $196 million from investors and was operated by Johanna M. Garcia. Castellanos raised at least $25.2 million from 1,222 investors by promising returns of 10% or more per month from purported merchant cash advance loans. Garcia pleaded guilty and received a 20-year federal prison sentence in December 2024. Co-conspirator Pavel Ramon Ruiz Hernandez, who raised approximately $46 million from more than 5,100 investors, pleaded guilty in 2023 and was sentenced to nine years and two months in prison. Investor losses were estimated at nearly $90 million.
Damian Castilla, 52, of Florida, who was previously convicted in connection with a Ponzi-style commodities investment fraud, was arrested again on new fraud charges while on probation from the earlier case. Authorities allege Castilla falsely held himself out as a commodities broker and diverted investor funds for personal use rather than legitimate investments. The original scheme allegedly defrauded at least one investor out of more than $300,000. Investigators now claim that while released on bond after his 2020 arrest, Castilla solicited another victim and obtained approximately $20,000 through similar misrepresentations. Castilla had been released from prison in November 2025 and was on probation until 2045.
Terrence Chalk aka “Dr. Terrence Cash,” 64, of New Jersey, was ordered to pay more than $1.7 million in disgorgement and interest in connection with his operation of a Ponzi-like investment fraud through Greenlight Investment Partners involving a fictitious “Chairman’s Fund.” Chalk pleaded guilty in 2024 to investment adviser fraud and was sentenced in May 2025 to three years in prison. He targeted approximately 40 primarily elderly investors, often through seminars held at Black churches, raising about $5 million between 2017 and 2020. He falsely promised high quarterly returns from pooled investments while using most investor funds for personal expenses, including a swimming pool, and to make Ponzi-style payments to earlier investors.
Sarah Chester, 44, of Maryland, was sentenced to five years in prison and order to pay approximately $600,000 in restitution for running a Ponzi-style fraud that stole hundreds of thousands of dollars from homeowners associations. She was hired to manage the HOA funds but instead diverted HOA funds into her personal accounts and spent them on travel and luxury memberships while using money from other accounts to cover shortfalls and conceal the scheme. The scheme defrauded 1,500 people.
Robert D. Christensen, 56, and Anthony M. Matic, 56, of Oregon, were sentenced to five years and three months in federal prison and two years and nine months, respectively, in connection with an $18 million Ponzi scheme run through their real estate investment company. The sentences exceeded prosecutors’ recommendations. They used investor funds for personal expenditures including casino trips, whiskey club memberships, massages, and cryotherapy treatments rather than legitimate investments.
Brook Church-Koegel, David Goldman and Nicole Walker settled with the SEC for no monetary sanctions but a one-year ban in connection with their role in soliciting investments into the Woodbridge Group of Companies LLC Ponzi scheme.
Brandon Ellington, known as “Mr. Finance,” of Illinois, was charged by state regulators with running a loan Ponzi scheme operation through Access Capital Today Inc. Authorities allege that about 300 clients invested in the real estate scheme promising high returns which Ellington broadcast on radio, television and billboards.
Joel Frank, of Washington and Equilus Group Ltd. were sued by Washington regulators on allegations that they were running a Ponzi-like scheme that allegedly raised more than $39 million from more than 90 investors. Frank was an investment advisor and allegedly diverted investor money for personal use, issued false account statements, and used incoming funds to make fraudulent payments to earlier investors. Regulators suspended his registration, froze operations, and appointed a receiver to take control of the investment funds and investigate losses.
Edwin Brant Frost IV, 68, of Georgia, founder of First Liberty Building & Loan, LLC, pleaded guilty to wire fraud in connection with a $140 million Ponzi scheme that defrauded at least 300 investors. Frost marketed the company heavily through conservative and Christian media outlets, branding it as part of a so-called “patriot economy” that would support small businesses and ministries while delivering annual investor returns of 8% to 16%. Frost claimed investor money would fund short-term bridge loans and real estate-backed lending opportunities, but instead used new investor funds to pay earlier investors while diverting millions for personal use. Prosecutors alleged Frost spent more than $5 million on luxury living expenses, including jewelry, a Patek Philippe watch, political contributions, rare coins, credit card bills, and a vacation home in Maine.
Nathan Fuller, of Texas, was charged by the SEC on allegations that he raised approximately $12.3 million from about 150 investors in a fraudulent scheme based on supposed proprietary AI-based trading bots that would engage in high-frequency arbitrage in trading crypto assets. He ran the crypto trading scheme through Privvy Investments LLC and Gateway Digital Investments and promised returns of 40-50% within 30 to 45 days. He also allegedly represented that investors could make profits exceeding 100% in as little as 21 days.
Rathnakishore “Ravi” Giri, 31, of Ohio, sentenced to nine years for operating a $10 million Bitcoin-related Ponzi scheme. He falsely portrayed himself as an expert in crypto derivatives trading while promising investors guaranteed profits with no risk. Authorities say he instead used new investor deposits to pay earlier participants and even continued soliciting funds after pleading guilty to wire fraud.
Ari J. Lauer was sentenced to 11 years and five months in prison for his role in the massive DC Solar fraud scheme. DC Solar claimed to manufacture portable solar generators eligible for lucrative federal tax credits and represented that the units were being leased to third parties for steady revenue generation. Approximately $759 million was raised from investors. Lauer played a central role by using his status as an attorney to provide legitimacy to the operation while concealing the lack of genuine business activity. Several other defendants, including company founders Jeff and Paulette Carpoff, have already received lengthy prison sentences.
Edwin Emmett Lickiss Jr., 78, of California, pleaded guilty to operating a long-running Ponzi scheme that defrauded more than 90 investors out of at least $9.5 million over more than two decades. The scheme, which promised returns of more than 20%, ran from 1998 to 2024. He falsely promised safe, high-yield bond investments but instead used new investor funds to pay earlier clients and on personal expenses. Lickiss faces up to 30 years in prison at sentencing scheduled for August 2026.
Carole Liston, of New York, settled with the SEC for $790,000 in connection with allegations that she misled investors about her trading expertise and strategy. The SEC claimed that Liston and her companies, Stock Purse Trading LLC and Liston Associates Inc., functioned as a Ponzi-style fraud in which investor funds were misused while clients were given false impressions about investment performance.
Christopher Knight Lopez, 40, of Texas, was sentenced to 10 years in federal prison after pleading guilty to conspiracy to commit wire fraud in connection with a $17 million Ponzi scheme that targeted more than 40 victims. Prosecutors said Lopez and his brother Jayson Lopez, 43, operated multiple investment entities, including Knight Nguyen Investments and Knight Advisory and Planning between 2015 and 2025. They used forged bank letters, fabricated account statements, and false claims about access to $2 billion in Treasury bonds to convince victims to invest. Instead of investing the funds as promised, they used new investor money to pay purported returns to earlier victims while diverting funds for personal use. Co-defendants Jayson Lopez and Nadir Abdel Torres, 46, also pleaded guilty and are awaiting sentencing.
Miles “Burt” Marshall, 74, of New York, pleaded guilty to charges in connection with a decades-long Ponzi scheme known as the Eight Percent Fund. Marshall raised more than $50 million from 988 investors from the 1990s through 2023, including neighbors, churches, and local organizations, by promising guaranteed 8% annual returns supposedly tied to profitable real estate investments. Marshall used new investor funds to pay earlier investors, financed his other businesses, and spent investor money on vacations, shopping, restaurants, and personal expenses. Bankruptcy filings showed liabilities of approximately $94.6 million
Warith Deen Muhammad, 39, of Virginia, was sentenced to four years and two months in federal prison in connection with a $1.5 million precious metals Ponzi scheme run through Niagara Gold and Silver LLC that defrauded more than 12 investors. Muhammad solicited more than a dozen investors by falsely promising guaranteed profits of 5% to 10% from precious metals trading, with repayment of principal and interest within approximately 30 days. Instead, Muhammad used new investor money to pay prior investors in Ponzi-style fashion and fund his lavish lifestyle, including luxury cars and rental properties, and purchases at high-end retailers.
Robert Newell and Black Hawk Funding, Inc., of California, agreed to pay $1.59 million to settle SEC allegations tied to a cannabis-related Ponzi-style investment scheme. Regulators accused Newell and Black Hawk of raising about $37.7 million from investors while diverting funds to unrelated uses, including payments to earlier investors and personal expenses. The settlement included disgorgement, penalties, and interest but no admission of wrongdoing.
Olena Oblamska aka Lola Ferrari, 42, a Ukrainian national, who had been accused of helping run the global Forsage cryptocurrency Ponzi scheme, has been extradited from Thailand to the United States to face federal fraud charges. Prosecutors allege Forsage operated as a pyramid scheme disguised as a crypto investment platform that defrauded investors out of roughly $340 million worldwide. Oblamska, described by authorities as the scheme’s self-styled “goddess,” has pleaded not guilty and is awaiting trial in Oregon.
Simon G. Outhwaite, Jr., 26, of Florida, pleaded guilty to charges that he defrauded investors through his investment company, Peoples Equity Group, run with Dakota Smith, who was sentenced this month in connection with the scheme.
Gregory Parker, 50, and Danielle Parker, 50, were charged in Ohio on allegations that they operated a real estate investment Ponzi scheme targeting potential investors through seminars, social media influence, and luxury lifestyle marketing. They promoted themselves online under the Instagram brand “bigbizzneesss,” portraying themselves as self-made millionaires while promising followers access to profitable Cleveland-area real estate investments. Authorities allege that investors were told their funds would purchase or renovate income-producing properties capable of generating above-market returns. Instead, prosecutors allege the couple used investor money to pay earlier victims and finance their own lavish lifestyle, including private jets, luxury vehicles, designer travel, and high-profile social media content.
Matthew Piercey, 49, was sentenced to 30 years and ordered to pay $25 million in restitution for a $35 million investment fraud scheme involving fake trading funds, false guarantees, witness tampering, and elaborate evasion attempts, including fleeing arrest using a submersible in a lake. Piercey pleaded guilty to the scheme that guaranteed profits from his investment advice. He falsely represented the nature and success of trading algorithms, his commissions and fees, and the financial stability of his investment companies, Family Wealth Legacy and Zolla. He paid back only $8.8 million of the $35 million invested.
Dakota A. Smith, 35, of Florida, was sentenced to 15 years and 8 months in federal prison for helping run a multimillion-dollar Ponzi scheme through Peoples Equity Group. Smith and his co-conspirators falsely claimed the company owned profitable aviation and e-commerce businesses, using fabricated financial records and online investor presentations to lure victims. Authorities say the scheme caused losses exceeding $20 million before collapsing.
Carl Channing Spence, 41, of Texas, was sentenced to 10 years in prison in connection with a $2.1 million Ponzi scheme run through AEI Financial. He promised 10% to 12% returns from investments in “meme stocks” that were popular during rapid stock market gains.
Richard Teplitsky, of New York, was charged in connection with an alleged scheme run through Woodhill Capital Corporation that defrauded more than 100 investors out of more than $40 million. Teplitsky promised the investors that their money would finance equipment loans for businesses. He then provided victims with fabricated loan documents and repayment schedules to support the illusion of legitimate transactions.
Jeffrey Jace Vernon and Matthew Shane Perkins, 47, of Utah, were sued by regulators alleging that they were operating an $89 million Ponzi scheme through RentDue Capital LLC that allegedly victimized more than 200 investors across 29 states. They claimed they used conservative strategies with no leverage in options trading but instead used margin trading and high-risk strategies that resulted in large losses. Investors were promised 70% of the profits. They ran the scheme through a number of entities, including RentDue Capital Fund 1, LLC, RentDue Capital Fund 2, LLC, RentDue Capital Fund 3, LLC, RentDue Capital Qualified Fund, LLC, Forged Oak, LLC, and 720 Empire, LLC. The scheme continued through “Qualified Fund” after the brokerage accounts were shut down. Perkins previously pleaded guilty in a criminal action relating to the scheme.
John Walters, 55, of Ohio, former chief compliance officer and chief risk officer of Northwest Capital, of Ohio, pleaded guilty to charges tied to a decade-long investment fraud scheme that defrauded at least 700 investors out of approximately $72 million. He received a two-year sentence. Northwest Capital used fraudulent documents to deceive investors and lending institutions while improperly diverting funds among affiliated businesses in classic Ponzi scheme. Co-defendants Richard Scheich, James Delverne, Doug Miller, and Nancy Rathbun, have also pleaded guilty in connection with the scheme.
INTERNATIONAL PONZI SCHEME NEWS
England
British travel agent Shelley Simpson was sentenced to 33 months in prison after pleading guilty to defrauding 47 customers out of approximately £300,000 through a luxury holiday Ponzi scheme. Simpson accepted large payments for luxury vacations, including high-end trips to destinations such as Barbados, but often failed to book flights or accommodations. Instead, customer funds were allegedly used to finance earlier bookings and cover personal expenses, including private school fees for her children. The fraud unraveled when customers discovered that flights and reservations they believed had been secured did not actually exist. The sentencing judge described Simpson’s operation as a “dance of deception.”
Declan Nowell, 31, was sentenced to 8 years and 1 month in connection with a Ponzi scheme that defrauded more than 600 people out of £9 million. The scheme promised returns from supposed investment in foreign currency markets, but Nowell instead spent the funds on a McLaren, a house, and designer clothing.
India
Authorities arrested fugitive Nowhera Shaik, accused of running a massive Ponzi scheme through Heera Group, that allegedly collected billions from investors with promised high returns, diverting funds into assets and delaying restitution efforts.
Authorities attached approximately ₹1.06 crore in assets tied to the alleged Global Media App Ponzi scheme, an online investment fraud that authorities say generated more than ₹45 crore from victims across India. Investigators allege the app masqueraded as an advertising-rewards platform that promised users passive daily income for watching videos and purchasing increasingly expensive VIP membership tiers.
Shivanand Neelannavar was arrested on accusations of promoting an illegal Ponzi-style financial operation that allegedly collected funds through unauthorized investment activities while promising high returns to participants.
Authorities uncovered a massive Ponzi fraud linked to the QFON app, which allegedly promised monthly returns of up to 10% through a fake digital business platform. Authorities say the operators used multi-level marketing tactics, social media campaigns, seminars, and cash networks to recruit investors. More than Rs 200 crore allegedly flowed through the scheme before several suspects fled abroad.
Nigeria
Nigerian police announced the arrest and repatriation of Chinese national Xu Qing, who is accused by Chinese authorities of masterminding a $245 million Ponzi scheme involving the illegal solicitation of public deposits. Qing fled China for Nigeria in late 2024 after allegedly defrauding hundreds of investors through a large-scale investment scheme. Authorities allege that the scheme involved illegally raising massive sums from the public under false investment representations before collapsing and triggering substantial investor losses. Qing has now been returned to China to face prosecution.
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