The Expert Podcast

• In today’s episode, we dive into a recent case where the SEC charged a CEO and their spouse in a $56 million Ponzi scheme.
• We explore the emergency relief obtained, what it means for victims, and how fraudsters create complex networks to trick investors.

• Ponzi Scheme Details:
  • SEC charged a real estate investment firm based in West Palm Beach, Florida, with fraudulently raising $56 million from 650 investors nationwide.
  • A significant portion of the funds came from investors’ retirement savings.
  • The fraud involved 23 related shell companies to deceive investors.
• How Scammers Operate:
  • Fraudsters often create a web of companies, promising high returns, like doubling your money in six months.
  • In this case, they falsely claimed a $450 million real estate portfolio and invested only a small portion of the raised funds into actual properties.
  • They misused $28 million of investor funds for speculative futures and options trading, losing $11 million in the process.
• Third Parties & Recovery Options:
  • Important note: If sales agents, accountants, or others received commissions, they may be held liable for recovery through a "clawback" or "chargeback."
  • Victims can sometimes recover funds through third parties, like banks or insurance companies, even when scammers have spent the money.
• SEC’s Role and Steps to Take:
  • SEC filed an emergency action, freezing assets, and appointed a receiver to manage the company’s finances and prevent further losses.
  • The first step for fraud victims is to report the incident (especially internet fraud) to IC3 and seek legal advice or contact a private investigator.

• If you’re a victim of fraud, don’t wait to report it. Seek legal counsel and understand your recovery options.
• Fraud is rampant, and scammers use various tactics to exploit people’s trust—crypto scams, real estate scams, and more.

• If you have been a victim, click below to learn more about your options for recovery.
• Be sure to check out other videos in this series for more insights on identifying, reporting, and recovering from scams.

• If you found this episode helpful, click below to get a consultation, share your story, and discover what steps you can take to protect yourself from fraud.