SEC Charges Minnesota Couple Over $17.6 Million Ponzi Scheme
From the Desk of Jim Eccleston at Eccleston Law:
The Securities and Exchange Commission (SEC) has obtained a temporary restraining order (TRO) and asset freeze against a Minnesota couple who allegedly operated a Ponzi scheme for nearly a decade, which impacted at least 200 investors and raised almost $18 million.
The SEC filed an emergency action against Jason Bullard and Angela Romero-Bullard along with their jointly-controlled entity, Bullard Enterprises. The SEC alleges that the Minnesota-based couple utilized funds from a Paycheck Protection Program (PPP) loan received during the pandemic to repay earlier investors. Bullard and Romero-Bullard began contacting investors in 2007 informed prospective clients that investor money would be used to trade foreign currencies through their “Flagship” and “Platinum” funds, according to the SEC. The SEC added that Bullard falsely informed investors that they could expect annual returns of 10% to 12%.
While Bullard Enterprises held brokerage accounts with TD Ameritrade, the business only transferred $193,125 to TD accounts out of $2.5 million it received from investors between 2019 and 2021. According to the SEC, the missing capital was used to fund other personal expenses include a horse-racing stable. Throughout the purported scheme, Bullard and Bullard-Romero provided clients with account statements, which falsely illustrated profitable performance from the funds, according to the complaint. However, Bullard Enterprises suffered “significant losses” in its trading account throughout the duration of the scheme and the SEC alleges that the couple had ceased trading of foreign currencies as early as 2015.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.
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