SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

Posted on June 22nd, 2022 at 1:17 PM
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors. 

According to the SEC, Mooney, Wright, and Flippen each worked for Livingston Group Asset Management d/b/a Southport Capital. The SEC alleges that the advisors recommended that their clients invest at least $62 million in Horizon Private Equity, which was a private investment fund operated by John Woods, Southport’s former owner and manager. The SEC previously charged Woods and Southport with several counts of securities fraud for operating Horizon as a Ponzi scheme in August 2021. 

The complaint further alleges that numerous clients were elderly or inexperienced investors who communicated that they were seeking safe investment opportunities. However, the advisors allegedly collected undisclosed compensation for recommending Horizon Private Equity to the clients. The SEC additionally alleges that the advisors falsely informed clients that Horizon would use the funds to purchase safe investments and that Horizon would pay investors a guaranteed rate of return. Nevertheless, Horizon utilized investor funds to make Ponzi-style payments to earlier investors. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.


Tags: eccleston law, sec, ponzi scheme

Return to Archive



I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.


June 9, 2023
Retrospective Review Deadline Approaching

The deadline for completing the initial retrospective review required by the Department of Labor (DOL) is quickly approaching.

June 8, 2023
Former David Lerner Branch Manager Receives FINRA Sanctions for Supervisory Lapses

The Financial Industry Regulatory Authority (FINRA) imposed a one-month suspension and a $5,000 fine on former David Lerner Associates branch manager Rande Aaronson.

June 7, 2023
SEC Files Fraud Charges Against Financial Advisor for Exploiting Elderly Clients

The Securities and Exchange Commission (SEC) has charged Douglas McKelvey, a former Morgan Stanley financial advisor, with fraud for misappropriating more than $1.7 million from two elderly customers who were his close relatives.