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.

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