Ponzi Scheme News

Jenny Coplan and Immigration General Services – South Florida Affinity and Ponzi Scheme Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney

Published on: September 30, 2013 | By Russell L. Forkey, P.A.

SEC Charges South Florida Woman Behind Ponzi Scheme Targeting Colombian-American Community

The Securities and Exchange Commission recently charged a woman living in South Florida with defrauding investors in a Ponzi scheme and affinity fraud that targeted the local Colombian-American community and involved purported investments in immigration bail bonds.

The SEC alleges that Jenny E. Coplan told investors that her company Immigration General Services operated through an investment broker that would invest the funds she raised in immigration bail bonds and turn a profit. Coplan promised interest payments ranging from 60 to 108 percent annually. She also assured investors that their money was safe because it was insured by the Federal Deposit Insurance Corporation (FDIC). However, Coplan never placed investor funds with any investment broker, and their money was never FDIC insured. Instead, she paid supposed profits to earlier investors using funds from newer investors in classic Ponzi fashion, and she stole approximately $878,000 of investor money for her own personal use.

Jenifer E. Hoffman, Joch C. Boschert and Bryan T. Zuzga – Florida Prime Bank Offering and Ponzi Scheme Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney

Published on: September 21, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Jenifer E. Hoffman, John C. Boschert, and Bryan T. Zuzga, Civil Action No. 5:13-cv-00455 (U.S. District Court for the Middle District of Florida)

The Securities and Exchange Commission (“Commission”) has charged Jenifer E. Hoffman and John C. Boschert, the former principals of Assured Capital Consultants, LLC – a now-dissolved Florida company – and Bryan T. Zuzga, the company’s purported escrow agent, for their involvement in a fraudulent prime bank offering and Ponzi scheme.

According to the Commission’s complaint, filed in U.S. District Court for the Middle District of Florida, between approximately January and September 2009, Assured Capital, through Hoffman, Boschert, and Zuzga, raised at least $25 million from investors, through false representations and fake documents. The complaint alleges that Hoffman and Boschert represented to investors that their money would be invested in Assured Capital’s offshore, confidential trading program which, in turn, would invest in blocks of medium term notes. As the complaint further alleges, Hoffman and Boschert enticed investors with claims of exorbitant profits and with the illusion of safety by telling them that the investment would provide weekly returns of up to 50% and that it was performing, safe, and guaranteed. In addition, Hoffman and Boschert represented to investors their money would remain safe in an Assured Capital escrow account that would be used to secure a line of credit for investing in the company’s offshore trading program. Furthermore, Hoffman, Boschert, and Zuzga told investors that Zuzga controlled the escrow account as Assured Capital’s escrow agent and that he was a licensed attorney. Moreover, Hoffman provided investors with fake bank documents and a sham verification letter, notarized by Zuzga, purporting to confirm Assured Capital had $500 million at a Panamanian bank.

Affinity Fraud – Haitian-American Investors – South Florida Affinity Investment Fraud FINRA Arbitration and Litigation Attorney

Published on: September 12, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission Defendant Indicted in $30 Million Ponzi Scheme and Affinity Fraud Targeting Haitian-American Investors

The Securities and Exchange Commission recently announced that on July 2, 2013, the United States Attorney’s Office for the Southern District of Florida filed criminal charges against George Louis Theodule, a defendant in a now settled SEC action. The 40-count indictment charges Theodule with securities fraud, wire fraud, and money laundering. According to the indictment, Theodule, among other things, falsely presented himself as a financial expert who would double investors’ funds within three months by placing trades through their investment accounts. The indictment also alleges that Theodule operated a Ponzi scheme that raised more than $30 million from thousands of investors. Theodule allegedly perpetrated the fraud through Creative Capital Consortium, LLC and Creative Capital Concept$, LLC (the “Creative Capital entities”), among other entities he controlled.

In December 2008, the Commission halted Theodule’s on-going fraud at Creative Capital when it filed an emergency civil enforcement action against him and his companies. The SEC’s complaint alleged that the defendants had raised more than $23 million from thousands of mostly Haitian-American investors through a fraudulent, unregistered offering of securities nationwide, and operated a Ponzi scheme, having lost at least $18 million trading stocks and options through a network of purported investment clubs. The SEC obtained a restraining order to halt the fraudulent activity, and thereafter a receiver was appointed by the United States District Court for the Southern District of Florida to identify and trace assets. In October 2009, the Court entered a Judgment of Permanent Injunction and Other Relief against Theodule. The Judgment entered by consent, enjoined Theodule from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and also ordered Theodule to pay disgorgement with prejudgment interest and a civil penalty. In March 2010, the Court entered a Final Judgment ordering him to pay disgorgement in the amount of $5,099,512, prejudgment interest of $202,638 and imposed a civil penalty of $250,000.

Anthony John Johnson – Florida Civil Conspiracy and Investment Fraud FINRA Arbitration and Litigation Attorney

Published on: September 10, 2013 | By Russell L. Forkey, P.A.

SEC Enforcement Proceedings:

Anthony John Johnson Sanctioned:

The Securities and Exchange Commission recently announced that Anthony John Johnson (Johnson) has been barred from the securities industry. The sanction was ordered in an administrative proceeding before an administrative law judge, following an August 2011 conviction for conspiracy to commit securities, mail, and wire fraud and an August 2012 conviction for mail fraud. Some of his wrongdoing occurred between March 2002 and March 2003, while associated with Park Capital Securities, LLC, where he engaged in manipulative trading and where brokers under his direction engaged in misrepresentations and material omissions to induce customers to purchase and refrain from selling certain stock. From approximately August 2010 to April 2011, Johnson operated a Ponzi scheme while associated with RAHFCO Management Group LLC, an unregistered investment adviser.

Retirement Fraud, Mismanagement and Breach of Fiduciary Duty Litigation and FINRA Arbitration Attorney

Published on: August 28, 2013 | By Russell L. Forkey, P.A.

Senior and Retirement Fraud, Misrepresentation and Breach of Fiduciary Duty Litigation and FINRA Arbitration Attorney:

Commission Charges Indiana Resident with Conducting Ponzi Scheme Targeting Retirement Savings of Investors

The Securities and Exchange Commission (“Commission”) recently charged a Noblesville, Ind., resident and his company with defrauding investors in a Ponzi scheme that targeted retirement savings.

Gregory N. McKnight – Florida Investment and Securities Ponzi Scheme FINRA Arbitration and Litigation Attorney

Published on: August 14, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Gregory N. McKnight, et al., Civil Action No. 08-cv-11887 (E.D. Mich.)

15 Year Prison Term for Gregory Mcknight, Orchestrator of $72 Million Ponzi Scheme

The Securities and Exchange Commission recently announced that on August 6, 2013, the Honorable Mark A. Goldsmith of the United States District Court for the Eastern District of Michigan sentenced Gregory N. McKnight to 188 months (15 years and 8 months) in prison, followed by supervised release of 3 years, and ordered McKnight to pay $48,969,560 in restitution to his victims. McKnight, 53, of Swartz Creek, Michigan, had previously pled guilty to one count of wire fraud for his role in orchestrating a $72 million Ponzi scheme involving at least 3,000 investors. The U.S. Attorney’s Office for the Eastern District of Michigan filed criminal charges against McKnight on February 14, 2012. McKnight was taken into custody immediately after the sentencing hearing.

Steven B. Heinz and S.B. Heinz & Associates, Inc. – Florida Financial Planning and Insurance Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: August 13, 2013 | By Russell L. Forkey, P.A.

SEC Obtains Asset Freeze and Other Relief in $4 Million Offering Fraud

Recently, the Securities and Exchange Commission (“Commission”) obtained a temporary restraining order and an emergency asset freeze in a $4 million offering fraud and Ponzi scheme orchestrated by Steven B. Heinz (Heinz) and his company S.B. Heinz & Associates, Inc. (S.B. Heinz), a financial planning and insurance agency located in Provo, Utah.

The complaint alleges that since January 1, 2012, Heinz acted as an investment adviser and solicited nearly $4 million from more than fifteen former clients, family members, and friends to enable him, through his company S.B. Heinz, to execute rapid buy and sell orders of futures contracts. The complaint further alleges that investor funds are being used to falsely create the appearance of a successful investment business although S.B. Heinz has actually lost approximately $1.5 million executing Heinz’s high risk futures contract trading activities. In addition, the complaint alleges that Heinz pays “returns” to earlier investors using new investor funds, used investor funds for his own personal purposes and that S.B. Heinz used investor funds to pay business expenses, including the salary for its secretary and its office rent.

Cort Poyner and Mohammad Dolah – Florida Common and Penny Stock Manipulation and Fraud FINRA Arbitration and Litigation Attorney

Published on: August 6, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Cort Poyner and Mohammed Dolah, Civil Action No. 13 Civ. 4331 (SJ) (E.D.N.Y.)

SEC Charges Stock Promoters with Market Manipulation

The Securities and Exchange Commission recently announced that it filed a civil injunctive action against Cort Poyner (“Poyner”) and Mohammad Dolah (“Dolah”), alleging that they engaged in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of Resource Group International, Inc. (“Resource Group”) and Gold Rock Resources Inc. (“Gold Rock”).

Martin C. Hartmann III and Laura Ann Tordy – South Florida Securities and Investment Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: July 13, 2013 | By Russell L. Forkey, P.A.

The Securities and Exchange Commission Obtains Final Judgments against Martin C. Hartmann III and Laura Ann Tordy

The Securities and Exchange Commission recently announced that on July 9, 2013, the Honorable Denis R. Hurley of the United States District Court for the Eastern District of New York entered final judgments against defendants Martin C. Hartmann III and Laura Ann Tordy, sales agents for Agape World, Inc. (“Agape”), an offering fraud and Ponzi scheme that raised $415 million from at least 5,000 investors nationwide.

The final judgment as to Hartmann permanently enjoins Hartmann from violating Sections 5 and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and requires him to pay $3,591,388 in disgorgement, $560,932 in prejudgment interest, and a civil penalty of $3,594,818. The final judgment as to Tordy permanently enjoins Tordy from violating the same provisions of the federal securities laws as Hartmann, and requires her to pay $1,048,485 in disgorgement, $163,761 in prejudgment interest, and a civil penalty of $1,048,485.

Duncan MacDonald and Gloria Solomon – Florida Ponzi Scheme, Securities and Investment Fraud Litigation and Arbitration Attorney, Russell L. Forkey, Esq.

Published on: June 18, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Duncan J. MacDonald, III and Gloria Solomon, Civil Action No. 3:13-cv-02275 (Northern District of Texas filed June 17, 2013)

SEC Charges Two Executives in Ponzi Scheme At Dallas-Based Medical Insurance Company

The Securities and Exchange Commission recently charged two executives at a Dallas-based medical insurance company with operating a $10 million Ponzi scheme that victimized at least 80 investors.