SEC Charges Marine Veteran in $2.5 Million Ponzi Scheme
The Securities and Exchange Commission (“SEC”) has charged Marine Corps veteran Christopher Aubin with fraud, accusing him of running a $2.5 million Ponzi scheme that defrauded dozens of investors, including several of his former military colleagues. Wealth Management reports that Aubin’s companies, Anchor State Capital and Anchor State Properties, also face charges as co-defendants.
Though neither Aubin nor his businesses registered with the SEC, Anchor State marketed itself as a financial firm offering capital access and tailored financial planning from so-called accredited professionals. Aubin promised investors lucrative opportunities through short-term, high-interest loans for real estate projects. He claimed investors would receive returns between 12 percent and 19 percent on investments lasting just one to eight months.
According to the SEC’s complaint, Aubin capitalized on his status as a veteran to earn the trust of his victims. Several Marines who had served alongside him invested in the scheme, along with other personal and professional contacts. Investors transferred funds through wire, check, and cash, relying on Aubin’s promises of reliable, high-yield opportunities.
In reality, Wealth Management reports that Aubin made very few legitimate loans. Instead, he used new investor funds to pay earlier investors, a classic Ponzi scheme structure. The SEC alleged that Aubin diverted much of the money for personal and business expenses, including luxury travel, vehicles, and extravagant meals. To sustain the scheme, Aubin persuaded investors to roll over both their principal and promised interest into new contracts, delaying repayments.
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