Tr?id=566623520170033&ev=PageView&noscript=1

SEC Uncovers Massive $500 Million Ponzi Scheme

Posted on February 17th, 2023 at 2:30 PM
SEC Uncovers Massive $500 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law

After Las Vegas investigative reporter Jeff German was killed outside his home in September 2022, The Washington Post and the Las Vegas Review-Journal collaborated to complete one of the stories German had planned to pursue prior to his death. 

The story revolved around court documents pertaining to an alleged Ponzi scheme that impacted hundreds of victims, including numerous Mormons. Authorities had suspected Matthew Beasley of orchestrating a massive Ponzi scheme with his business partner, Jeffrey Judd, which primarily targeted Mormons. According to the SEC, Beasley and Judd pitched a purported risk-free investment opportunity to earn annual returns of 50% by lending money to slip-and-fall victims who were awaiting damages from lawsuit settlements. However, the SEC alleges that the investment opportunity was a sham as Beasley and Judd paid existing investors with funds collected from new clients for at least five years. 

At least 900 individuals invested an estimated total of $500 million between 2017 and 2022, according to the SEC. The investors included surgeons, real estate developers, Mormon bishops, and retirees, according to a class-action suit filed in July against Wells Fargo, where Beasley had organized an attorney trust fund to disburse client funds. Some individuals emptied their retirement accounts while others were prompted to take out a second mortgage on their house, according to The Washington Post. 

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

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.