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Pennsylvania man defrauded investors for more than $2 million

| Nov 15, 2020 | Uncategorized |

As the saying goes, “if it sounds too good to be true, it usually is.” While it is hard to pass up a great deal, the reality is that some of these good deals are far from just that. When it comes to making an investment, this could result in serious detriments for individuals in Pennsylvania and elsewhere if they have fallen victim to a Ponzi scheme. Thus, it is important that one explores their rights and options when such an incident does occur.

Defrauding investors

Based on recent reports, a man from Salem County is accused of defrauding investors for more than $2 million. It was purported that he did this through a scam he launched from his apartment. Allegedly, the 29-year-old man posed as a licensed investment adviser as a means to collect more than $3 million from the individuals that fell victim to his Ponzi scheme.

Victims of scheme

The man, who is a former warehouse operator, is accused of diverting more than $1 million from his firm. It was estimated that around 122 individuals fell victim to this scheme, all of them providing more than $240,00 for the purchasing of luxury vehicles, more than $47,000 for the purchasing of guns and more than $21,000 for jewelry.

He allegedly promised investors ad 25% return in stock and cryptocurrencies; however, it was claimed that he only invested about $518,00 and lost more than $100,000 on those investments. Back in August 2018, he ignored a cease and desist letter that ordered him to stop selling unregistered securities and to stop serving as an unlicensed investment adviser.

Falling victim to a Ponzi scheme can be difficult to navigate, as it is not only a shocking event but also one that causes financial harms and a wide range of emotions. Thus, one should understand their legal rights when it comes to taking action and protecting their rights.