By Kathy Bazoian Phelps
Below is a summary of Ponzi scheme activity reported for August 2026. There were at least 6 new Ponzi schemes revealed worldwide this month, 3 guilty pleas, 3 convictions, and more than 67 years of prison sentences. The average age of the fraudsters was about 52 years old. Please feel free to post comments about these or other Ponzi schemes that I may have missed.
Todd Burkhalter, 59, was sentenced to 20 years in connection with the Ponzi scheme run through Drive Planning LLC. Julie Edwards, 59, was sentenced to 2 years and David Bradford, 53, was sentenced to 4 years and 3 months. All three had pleaded guilty to running the scheme that defrauded more than 2,000 investors out of $380 million. The scheme promised returns from several investment opportunities, including the Real Estate Acceleration Loan opportunity or REAL, and the Cash Out Real Estate Fund or CORE Fund. Investors were promised a 10% return every three months.
Matthew Campbell, 43, of California, was sentenced to 4 years and 4 months in connection with a $9 million Ponzi scheme run through Preferred Property LLC and Ampez Rehab Investments LLC. The real estate scheme promised returns from buying, renovating, and selling properties. More than 40 investors were defrauded in the scheme.
Michael Cox and Joshua Allen, of Texas, were found guilty of running a Ponzi scheme that took in $80 million from investors, leaving approximately 500 investors with losses. Allen owned Allen Financial Agency, and the scheme was run through Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. Brooklyn Chandler Willy has also been charged and previously pleaded guilty. She was the owner of Chandler Capital Holdings and Queen B Advisory LLC dba Texas Financial Advisory.
Christopher A. Delgado and his company, Goliath Ventures, Inc., were sued by the SEC on charges that they were running a $425 million Ponzi scheme that defrauded more than 1,300 investors. They promised returns of 3% to 10% from cryptocurrency trading. Delgado previously pleaded guilty to running the scheme.
Rey E. Grabato II has been added to the FBI’s Most Wanted Fraudsters list in connection with a $650 million scheme run through National Realty Investment Advisors LLC, or NRIA. The scheme allegedly defrauded about 2,000 investors.
Daryl Heller, 56, of Pennsylvania, pleaded guilty to charges that he ran a Ponzi scheme through Paramount Management Group, and the Prestige and WF Velocity ATM funds. He promised returns from the purchase and operation of ATMs and cryptocurrency teller machines. Heller raised approximately $770 million from 2,700 investors, causing losses of $400 million.
Barbara A. Hirschfield, 83, of Massachusetts, pleaded guilty to charges that she was running a $10 million Ponzi scheme that defrauded over 200 victims. She ran the scheme through Ideal Financial Services, Inc. and Ideal Financial Holdings and purported to operate a motor vehicle and small loan business. Investors were guaranteed high returns from the lending business and money generated from borrower’s loan repayments.
Jean Joseph aka Jon, 55, and Janalie Camille Bingham aka Janalie Camille Joseph, 44, were sentenced to 20 years and 4 years, respectively, for their role in the Ponzi scheme run through Wells Real Estate Investment, LLC. They represented that investor funds would be used to acquire and improve residential and commercial real estate. The scheme involved $50 million, and Joseph used $2 million for personal expenses.
Brent C. Kovar, of Nevada, was convicted on charges relating to a $24 million Ponzi scheme run through Profit Connect that defrauded at least 400 investors. The scheme promised returns of 15% to 30% from the supposed use of artificial intelligence software on a supercomputer to mine cryptocurrency.
Leor Moshe, 43, of New Jersey, pleaded guilty to charges that he ran a Ponzi-like scheme through Capital Funding ASAP LLC that defrauded more than 97 victims out of more than $47 million. He promised returns between 9% and 53% from short-term business loans. Moshe targeted his Orthodox Jewish community and took $11 million for gambling debts and other personal expenses. The SEC also charged Moshe and named Jacob Goldman and Isaac Odes in the complaint as unregistered broker-dealers who solicited more than $23 million from at least 25 investors
Christopher Parris, 46, former manager of First National Solutions, LLC, and John Piccarreto, 43, of New York, were banned by the SEC from the securities industry. In 2021, Parris pleaded guilty to charges relating to a Ponzi scheme that involved acquiring the books of retiring advisors and then selling their clients’ securities in issuers controlled by Parris. Parris was sentenced to 18 years and 8 months and ordered to pay $106 million in restitution. They were part of a larger Ponzi scheme run by Perry Santillo, 45. The scheme raised at least $115 million from approximately 1,000 investors. Paul LaRocco and Thomas Brenner were also barred by the SEC.
Heath Posey, of Colorado, was sentenced to 6½ years in prison for helping to conceal the collapse of a Ponzi scheme run through ROI Cash Flow Fund. The scheme took in approximately $8 million from more than 50 investors and promised 3% monthly returns from foreign currency exchange. Posey, along with the fund’s founder, Timothy McPhee, continued to promote the fund to new investors after it had started failing. McPhee also promoted a phony tax shelter and pleaded guilty in 2025. McPhee's wife, Marcia Predmore, along with Roderick Prescott, Suzanne Thompson, and Weldon Wulstein were convicted in June.
Darren Anthony Robinson, 56, of New York, was added to the Most Wanted Fraudsters list. Robinson allegedly raised $100 million from investors for a scheme run through QYU Holdings. Robinson promised returns from foreign currency exchange trading. He was released on bond and approved to travel but then removed the GPS tether and remains at large.
Joshua Schuster, 42, of Florida, was sentenced to 4 years in prison in connection with a $13 million Ponzi scheme through Silverback Development. He previously pleaded guilty to charges that he ran the scheme by falsely promising investors returns from the acquisition and development of certain New York-based projects.
Kenneth Thom aka K$ aka K Money, 42, of New Jersey, was sentenced to 2 years in connection with a Ponzi scheme that defrauded approximately 66 investors out of $800,000. He held himself out as a financial “luminary” and “beacon of knowledge.” He only invested $350,000 of the investors’ funds and lost approximately 73%.
Edward Zimbardi, 59, of Georgia, was deported back to the U.S. from Fiji to face charges relating to an alleged $165 million Ponzi scheme. Zimbardi called his scheme The Crypto Program that guaranteed 25% monthly returns to more than 6,000 investors. Authorities allege that he encouraged investors to invest more cryptocurrency into wallets to purchase advertising packages, but he secretly controlled the wallets and he spent at least $10 million on personal expenses.
INTERNATIONAL PONZI SCHEME NEWS
England
Authorities shut down Key Coin Assets Ltd. when they found no evidence of cryptocurrency trading. Investors were promised guaranteed returns of 40% to 100%. The scheme was promoted as “0 Fees, 0 Risks.”
India
Sankar Sarkar was arrested on allegations that he was running a cryptocurrency Ponzi scheme through “Yes World” with promises of high returns. Authorities believe that approximately 8,000 people invested in the scheme.
Authorities searched the premises of Shivam Associates and its managing director, Shivanand Neelannavar, who are accused of running a Ponzi scheme.
Sameer Agarwal is accused of masterminding a 11,000 crore Ponzi scheme through Endvazet Trade and Option One Industries. Agarwal remains in hiding.
Nigeria
Authorities arrested 23 foreign nationals suspected of running a Ponzi scheme and visa scam.
Pakistan
Authorities referred M/s Blink Capital Management (Private) Limited for investigation of an alleged scheme that promised fixed returns ranging from 3.7% per month to 48% per year.
Singapore
A woman, 49, and 7 others, were arrested on charges relating to an alleged Ponzi scheme run through Fun Coffee. Investors transferred cryptocurrency into wallets through the app and were promised high returns along with commissions for recruiting new members. Fun Coffee describes itself as a "lifestyle brand combining coffee, wellness and digital innovation into a community experience.” Authorities believe that approximately 200 people lost approximately $16.3 million. Fun Coffee claimed to have assets of more than $1 billion.
South Korea
Authorities are investigating eSIM on allegations that the company defrauded 1,440 victims in a scheme that sold eSIMs to foreign visitors.
Turkey
Mine Mumcu aka Ponzi Mine, 45, was arrested after being a fugitive since 2023. She was sentenced to 20 years.
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