The US Securities and Exchange Commission (SEC) was reported to have filed charges against a very profitable Ponzi scheme. More specifically, SEC has obtained the right to file charges against an advisor heavily involved in the scam.
The official press release that covered the story detailed that SEC obtains an emergency action to stop the scheme operated by one John Woods from Marietta, Georgia. The culprit was said to operate two entities. Livingston Group Asset Management Company and Horizon Private Equity, III LLC investment fund.
John Woods was accused of soliciting $110 million. The victims are said to be around 400 scattered in some 20 States.
Acting quickly the US Northern District Court of Georgia granted SEC the ability to freeze all the defendant’s assets.
SEC revealed that the main culprit and his associate lied to investors that all their invested capital would be safe and used for investment purposes. The turning point was when the scammers lied about paying a fixed rate after a short waiting period. Of course these promises were not kept send the money was never returned.
Such schemes at times might pay a certain amount back just to prove thier false legitimacy. However the money that is paid back is just money from the investors themselves and never any profit.
The investigation is currently ongoing.