Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Friday, August 10, 2007

SEC Efforts Against Ponzi Schemes

The SEC reports today on three enforcement actions against Ponzi or other fraudulent schemes targeted at elderly and retired investors -- a reminder that an important and perhaps under-publicized part of  SEC enforcement goes toward attempts to stamp out these blatant frauds that continue to appeal to unsophisticated and naive members of the investing public.  They are:

(1) A fraudulent foreign currency option scheme that collected more than $11 million from over 100 investors.  The creator of this Ponzi scheme was described by the SEC as a twice-convicted felon, with four decades of securities fraud, who embarked on this venture shortly after release from prison.

(2) A fraudulent offer and sale of Secured Debt Obligations (SDOs) that raised more than $55 million from investors.

(3) Fraudulent sales of mining claims that guaranteed 7-9% annual revenues from mining operations, but in reality was a Ponzi scheme that raised over $20 million from over 100 investors.

SEC Action | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference SEC Efforts Against Ponzi Schemes:


Post a comment