The SEC is charging Dennis Wright, an ex-Axa Advisors broker, with operating a Ponzi scam for 14 years and bilking customers of $1.5 million. According to the regulator, from 1998 and into 2012, Wright allegedly persuaded at least 28 customers to take money out of Axa variable annuity accounts under the guise that he would move the money to mutual fund accounts that had higher returns and also were run by the brokerage firm.
The Commission claims that rather than invest clients’ money, what ended up happening is that Wright put the money into a bank account under his control and used the funds to pay other investors. The SEC says that Wright purposely manipulated Axa Advisor clients so he could steal their savings. Alleged victims included members of Wright’s community, including childhood friends, and unsophisticated investors.
Axa Advisors let Wright go in 2012 after the firm found out about the alleged fraud. Axa has since paid back the customers whose funds were misappropriated.
In other Ponzi scam news, the SEC has filed charges against eAdGear Holdings Limited, which is based in Hong Kong, eAdGear, Inc., which is in California, Qian Cathy Zhang, Charles S. Wang, and Francis Y. Yuen of running an international Ponzi and pyramid scam that raised over $129 million. Investors are from the U.S., Taiwan, and China.
The regulator claims that the companies and its operators claimed to be running a profitable Internet marketing company when really it was a scam targeting Chinese communities. Investors’ money was allegedly used to pay off earlier investors and to buy million-dollar homes for Zhang, Wang, and Yuen.
Bogus websites were purportedly created on eAdGear’s site to make it look as if there were real paying customers and investors were getting revenue distributions, when, in fact, the “revenue” was, in actuality, investor money. The companies were not making money from their products and services.
Also facing SEC Ponzi scam charges is Joseph Laurer, the former president of the AARP’s South Dade Chapter in Florida. The regulator is accusing him of raising $4.6 million from primarily local investors.
The SEC says that Laurer told investors he was going to place their money into AAA-rated corporate and government bonds that had a guaranteed fixed income and would bring no risk to their principal balance. However, he hardly invested any money into the securities. Instead, he purportedly used their funds to pay for his own personal spending and pay earlier investors their returns.
Laurer allegedly ran the Florida Ponzi scam from 2004 until his death earlier this year. His widow is the relief defendant. The Comission wants to get back the money and pay back investors.
Former AARP leader in Miami-Dade ran offshore Ponzi scheme, SEC charges, South Florida Business Journal, September 16, 2014
NJ couple accused of operating $129 million pyramid scheme, NJ.com, September 27, 2014
SEC charges ex-Axa broker with running $1.5 million Ponzi, InvestmentNews, October 1, 2014
More Blog Posts:
SEC to Dismiss Lawsuit Against SIPC Over Payments to Stanford Ponzi Scam Victims, Stockbroker Fraud Blog, September 11, 2014
DOJ’s Fund for Madoff Victims Has Received 51,700 Claims Worth $40B, Institutional Investor Securities Blog, May 14, 2014
Resource Horizons Group’s Future Hangs in Balance Following $4M FINRA Arbitration Award, Stockbroker Fraud Blog, September 25, 2014