The Secretary of the Commonwealth in Massachusetts, William Galvin, charged Stephen Eubanks for engaging in a Ponzi scheme. Eubanks solicited customers to purchase shares of a fund he managed named "Eubiquity Capital Fund." According to authorities in Massachusetts, instead of investing customer monies in the Eubiquity Capital fund, Eubanks used the funds to pay his personal expenses and pay off earlier investors. All together Eubanks misappropriated $529,000 from investors to perpetrate the scheme.
Patrick Churchville, the owner of Clear Path Wealth Management, plead guilty to five counts of wire fraud and one count of tax fraud. Mr. Churchville allegedly operated a $21 million Ponzi scheme. Investigators believe that the Ponzi scheme began in 2008 and Churchville used investor funds to fund a lavish lifestyle.
Louis Martin Blazer, III, a financial advisor from Pittsburgh, was charged by the Securities and Exchange Commission (SEC) for allegedly creating a Ponzi scheme. The SEC believes Blazer defrauded his pro athlete clients by taking about $2.35 million out of their accounts, without their authorization, and invested it into two films he was producing. One of Blazer's clients noticed that Blazer had taken $500,000 from his account for the films. When the client told Blazer he was going to file a lawsuit, Blazer said he would return the money. The SEC believes that he was able to make the repayment by using money misappropriated from another client's account.
Claus Foerster, a financial advisor from South Carolina, has been indicted on fraud charges. Mr. Foerster was barred by FINRA from the securities industry in 2014 after allegations that he was running a Ponzi scheme. Foerster allegedly ran the Ponzi scheme for 14 years and was able to defraud his clients out of $2.8 million. Foerster perpetuated the Ponzi scheme by providing his clients with fictitious account statements. The Ponzi scheme began while Foerster was a financial advisor employed by Smith Barney and continued through his employment with Raymond James. Raymond James terminated Foerster when they learned of the fraud and made restitution to the clients that were involved in Foerster's scheme.
William J. Wells, an investment manager for a New Jersey firm named Promitor Capital Management LLC, has been charged by the Securities and Exchange Commission (SEC) with fraud. According to the SEC, Wells operated a Ponzi-like scheme. Wells allegedly told investors he would invest their money into specific stocks, but then actually invested their monies in different stocks, some of which were highly speculative. When the stocks did not perform well, Wells created false statements to hide the losses. Wells was able to further conceal the losses by raising money from new investors to pay the established investors. According to the SEC, Wells misappropriated about $1.1 million from all of the investors, most of which has been lost.
Sean Meadows of Meadows Financial Group was sentenced to 25 years in prison after allegedly orchestrating a Ponzi scheme that cost 55 clients $13 million. Meadows promised clients that they would receive a 10% annual return on investments allegedly made in stocks and bonds. The money instead went to Meadows to pay both business and personal expenses. Prosecutors believe that at least $100,000 went to adult entertainment establishments. Prosecutors asked for a 30 year sentence because of the manner in which Meadows preyed on his clients. As part of the judgement, Meadows was ordered to surrender any real or personal property that had any ties to the Ponzi scheme. This included watches, real estate and a boat.
Financial planner and vice president of Capital Financial Planning, LLC, Frederick Monroe, was arrested for allegedly swindling clients out of $1.26 million. New York State Attorney General Eric Schneiderman believes that Monroe had been operating a Ponzi scheme since 2008. Monroe had clients issue checks to him, personally, which he then deposited into his own personal checking account. Monroe is facing multiple felony charges including scheme to defraud, grand larceny, money laundering, and securities fraud. Monroe faces 25 years in prison and was sent to jail after failing to comply with his bail requirements.
A former A.G. Edwards, Merrill Lynch, and Raymond James affiliated broker is facing up to twenty years in prison after allegedly running a $6 million Ponzi scheme. Sunil Sharma allegedly raised $8.36 million from investors over a six year period for a day-trading strategy involving high risk option securities. Unfortunately for Sharma, according to federal prosecutors, the strategy did not pay off and he acquired new investors to repay the old investors. Sharma pleaded guilty and is scheduled to be sentence in August. Sharma faces twenty years in prison.
Matthew Haab, president of Partners Inc., faces charges by the Securities and Exchange Commission (SEC) for allegedly running a Ponzi scheme. The SEC believes that Haab deceived eighty of his clients into investing in loans to farmers. The clients were told that the loans would be used to aid farmers in the 2013-2014 growing season. As a result, Haab and his firm was able to raise about $15 million through the scheme. Nearly half of the money earned went to past investors. According to a Wall Street Journal report, "$800,000 went to Mr. Haab and two other advisers, Jeffrey Risinger and Tobin Senefeld, in undisclosed fees." The SEC has frozen all accounts related to the scheme.
Will Allen, former Giants cornerback, has been sued by the Securities and Exchange Commission (SEC) after allegedly operating a Ponzi scheme. The SEC claims that Allen and his partner carried out the scheme in order to satisfy a $7 million debt. The investors believed that they were making loans to professional athletes and would be earning up to 18% on the loan. However, in reality, a large portion of the investor money was siphoned off to pay the pre-existing personal debt.