SEC Charges Accountant for Aiding and Abetting a $110 Million Ponzi Scheme and Orchestrating a Separate Fraudulent Scheme

The Securities and Exchange Commission has recently brought forward allegations against William V. Conn, Jr., who is a certified public accountant hailing from Sandy Springs, Georgia. These charges stem from his involvement in a Ponzi scheme orchestrated by John Woods. Woods utilized an investment vehicle he established and controlled, known as Horizon Private Equity, III, LLC (“Horizon III”). In addition to these charges, Conn is also facing allegations for his role in a separate fraudulent scheme tied to a different investment fund under his control, Horizon Private Equity, LLC (“Horizon I”).

As outlined in the official complaint, the period spanning 2007 to 2021 saw Conn assuming the role of the outward-facing manager for Horizon III. This strategic move by Woods allowed the Ponzi scheme to thrive, raising an excess of $110 million from more than 400 investors. Remarkably, these activities went undetected by the investment adviser firm where Woods was employed. Subsequently, Woods himself faced securities fraud charges related to his central role in engineering the Horizon III Ponzi scheme in August 2021.

The complaint also reveals Conn’s alleged actions between 2008 and 2022. During this timeframe, Conn purportedly encouraged 21 of his accounting clients to invest approximately $2 million into his own investment fund, Horizon I. He initially presented these investments as opportunities within carefully selected hedge funds. However, the funds, according to the complaint, were diverted and misused. Conn stands accused of channeling these investor funds to bolster his accounting business, cover personal expenses, and fund a failed real estate project.

The complaint, officially lodged in the United States District Court for the Northern District of Georgia, contends that Conn violated various sections of the Investment Advisers Act of 1940 (“Advisers Act”), including Sections 206(1), 206(2), and 206(4), along with Rule 206(4)-8. Additionally, Conn is implicated in aiding and abetting Woods and the entities under his control in their previously charged infractions, which involve violations of Sections 206(1) and 206(2) of the Advisers Act, Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5. The complaint seeks a range of remedies against Conn, encompassing permanent injunctive measures, disgorgement, prejudgment interest, and civil penalties.