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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCelsius Used New Customer Funds to Pay for Withdrawals: Independent Examiner
Celsius misled its investors – and on occasion used new customer funds to pay for other customers’ withdrawals, the usual definition of a Ponzi scheme, an independent examiner for the New York bankruptcy court said in a Tuesday filing. In September, Shoba Pillay was asked by the court to offer an outside view of goings-on […]
Investors in Alleged Crypto Ponzi Scheme EminiFX Are Cheering CEO Eddy Alexandre – Bloomberg
For Louisiana Francois, who sank $10,000 into what prosecutors say was a Ponzi-like crypto scheme, driving four hours from her home outside Boston to watch the man who allegedly took her money appear in court was an easy call. But she didn’t go to condemn him. She went to cheer him on. “I’m standing with Eddy Alexandre, […]
SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme
The Securities and Exchange Commission today charged 11 individuals for their roles in creating and promoting Forsage, a fraudulent crypto pyramid and Ponzi scheme that raised more than $300 million from millions of retail investors worldwide, including in the United States…. According to the SEC’s complaint, in January 2020, Vladimir Okhotnikov, Jane Doe a/k/a Lola […]
A Bigger Risk Than GameStop? Beware the Ponzi Scheme Next Door – The New York Times
A bigger issue for investors may well be the increasing number of Ponzi schemes, which use money from new investors to pay earlier investors until the fraud falls apart. Many of the latest fraudsters have been preying on people who feel they lost out on the big stock market gains of last few years. The […]
SEC Charges Husband and Wife with Nearly $1 Billion Ponzi Scheme
According to the SEC’s complaint, Jeffrey and Paulette Carpoff raised approximately $910 million from 17 investors between 2011 and 2018 by offering securities in the form of investment contracts through their two solar generator companies, DC Solar Solutions Inc. and DC Solar Distribution Inc. The Carpoffs allegedly promised investors tax credits, lease payments, and profits […]
In the Decade Since Madoff, Ponzi Schemers Try New Tactics – The New York Times
Whether the increase is the result of enhanced enforcement or a proliferation of scammers, records show that Ponzi victims lost $31 billion in the decade beginning 2009, more than three times the amount lost in non-Madoff schemes in the previous decade. (The figures are not adjusted for inflation.) Sioux Schaefer was one of those millions […]
US prosecutors charge three men in US$364 million Ponzi scheme – Reuters
Federal prosecutors have accused three men of portraying themselves as investment professionals and using a phony portfolio of consumer debt to defraud hundreds of unwary investors out of tens of millions of dollars as part of a US$364 million Ponzi scheme. via US prosecutors charge three men in US$364 million Ponzi scheme – Reuters
The “Dawn” of a New Day—and a New $20 Million Fraud Charge | Bloomberg BNA
But Bennett, a former radio personality in addition to her investment fund work, allegedly didn’t let that little setback slow her down. No, she picked herself up, dusted herself off, and, according to civil and criminal charges filed by the SEC and the Justice Department, started a brand new career as a Ponzi schemer and […]
U.S. Charges Ex-Radio Host Who Hoped ‘Spell’ Would Stop Fraud Probe – The New York Times
U.S. authorities on Monday charged a former radio host with fraudulently raising $20 million in a scam bearing the hallmarks of a Ponzi scheme, while hoping to cast a “spell” to silence lawyers trying to investigate her. *** Prosecutors also disclosed the discovery in an Aug. 2 search of Bennett’s penthouse in Chevy Chase, Maryland, […]
Martin Shkreli hit with another criminal charge | New York Post
“The most hated man in America” was hit Friday with an additional criminal charge related to an $11 million Ponzi scheme he allegedly ran. … Shkreli faces up to 20 years in prison for allegedly paying off debts from two failing hedge funds and covering up some personal expenses by skimming assets from Retrophin, a […]