SEC Obtains TRO and Asset Freeze Against Alleged Perpetrators of $450 Million Ponzi Scheme

Posted on April 25th, 2022 at 12:21 PM
SEC Obtains TRO and Asset Freeze Against Alleged Perpetrators of $450 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has charged and obtained an asset freeze against numerous Las Vegas-based individuals and entities for allegedly operating a $450 million Ponzi scheme involving purported personal injury settlements. 

The SEC charged some defendants with violations of antifraud provisions of the federal securities laws, other individual defendants with acting as unregistered advisors, and all the defendants with conducting an unregistered securities offering. Attorney Matthew Beasley as well as cohorts Jeffrey Judd and Christopher Humphries falsely informed hundreds of potential investors, including several in their own church community, that they would receive 12.5% quarterly returns by making purportedly risk-free investments in J&J Consulting Services, according to the SEC’s complaint. The SEC alleged that Beasley and Judd launched the company to purportedly advance funds to tort plaintiffs who had agreed to settlements with insurance companies. However, the alleged perpetrators used $449 million generated from investors over a five-year period to instead purchase luxury homes, cars, boats and a private jet, while making Ponzi-style payments to earlier investors. 

The SEC charged Judd, Beasley, Humphries, J&J Consulting Services, Inc. (Nevada), J&J Consulting Services Inc. (Alaska), J and J Purchasing LLC, and Beasley Law Group PC with fraud. Additionally, the SEC charged Judd, Humphries, Shane Jager, Jason Jongeward, Denny Seybert, and Roland Tanner with acting as unregistered advisors. Finally, the entities and individuals named as relief defendants in this action are The Judd Irrevocable Trust, PAJ Consulting Inc, BJ Holdings LLC, Stirling Consulting L.L.C., CJ Investments, LLC, Rocking Horse Properties LLC, Triple Threat Basketball, LLC, ACAC LLC, Anthony Michael Alberto, Jr., and Monty Crew LLC. The SEC’s asset freeze against Beasley and the other defendants prohibits any further misuse of investor funds while the SEC is additionally seeking permanent injunctions and disgorgement of ill-gotten gains plus interest and penalties. 

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

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

February 27, 2026
Eighth Circuit Rejects Emergency Injunction in Advisor Departure Dispute

A federal appeals court ruled against an advisory firm seeking immediate, injunctive relief after a team of advisors left with hundreds of millions in client assets.

February 26, 2026
FINRA Bars Former Cambridge Advisor After Refusal to Cooperate With Communications Probe

A former advisor affiliated with Cambridge Investment Research has been barred from the securities industry after declining to comply with a regulatory investigation, according to the Financial Industry Regulatory Authority (FINRA).

February 25, 2026
Advisors Increase Crypto Allocations as Merrill Lynch Warns of Significant Risks

Financial advisors are placing more client assets into digital currencies, even as major firms caution investors about the asset class's volatility and speculative nature.