SEC prices Titanium Capital with working Ponzi scheme

The Securities and Alternate Fee (SEC) has charged Florida-based Titanium Capital LLC and its founder Henry Abdo with working a Ponzi scheme that raised at the very least $5.3 million from greater than 160 retail traders in the USA and overseas. The SEC additionally charged Titanium consultant Carol Ann Barsh for her function soliciting traders.

In keeping with the SEC’s grievance, since 2014, Abdo and Titanium falsely claimed that Titanium invested investor funds in a “Multi Foreign money Funding Fund” backed by a proprietary foreign money alternate and that the funding had by no means had a month-to-month loss and generated giant returns for traders, together with as much as 102 % compounded curiosity for a five-year funding. In recruiting traders, Titanium and Abdo allegedly claimed that Titanium was registered with and intently examined by the SEC.

Nonetheless, in accordance with the SEC’s grievance, neither Titanium nor the provide or sale of its securities is registered with the SEC, and there’s no proof {that a} proprietary foreign money alternate exists. In keeping with the grievance, Abdo and Titanium used just about all investor funds to make Ponzi-style funds to earlier traders, pay associated events, and divert funds for Abdo’s private use on gadgets resembling jewellery and on line casino visits.

The SEC additionally alleges that Barsh promoted and bought Titanium’s securities to traders with out correct registration or pursuant to an exemption from registration.

The SEC’s grievance, filed in U.S. District Courtroom for the Southern District of Florida, prices Titanium and Abdo with violating the antifraud provisions and, together with Barsh, the registration provisions of the federal securities legal guidelines. The grievance seeks injunctive reduction, disgorgement, and civil penalties in opposition to Titanium, Abdo, and Barsh and a everlasting bar in opposition to collaborating in future securities choices and an officer and director bar in opposition to Abdo.

The grievance additionally names as reduction defendants, and seeks disgorgement from, Abdo’s relative, Elias Halim Abdo, and Abdo’s spouse, Ganna Migulina.