SEC Charges Florida Resident for Operating $112 Million Ponzi Scheme that Targeted Haitian-American Community

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The Securities and Exchange Commission (SEC) has recently taken legal action against Sanjay Singh, a resident of Broward County, Florida, and his company, Royal Bengal Logistics Inc., for engaging in fraudulent activities. Singh and his company are accused of unlawfully raising around $112 million from approximately 1,500 investors, primarily targeting members of the Haitian-American community, through an unregistered securities offering.

According to the SEC’s complaint, Singh and Royal Bengal Logistics Inc. allegedly enticed investors between 2019 and 2023 by offering high-yield investment programs that claimed to guarantee returns ranging from 12.5 to 325 percent. Investors were led to believe that their funds would be used to expand the company’s operations and increase its fleet of semi-trucks and trailers. Singh and Royal Bengal Logistics assured investors that these investment programs were safe and claimed that the company generated up to $1 million in monthly revenue. However, the SEC alleges that Royal Bengal Logistics actually operated at a loss and utilized approximately $70 million of new investor funds to make payments resembling a Ponzi scheme to other investors.

The SEC’s complaint further alleges that Singh misappropriated at least $14 million of investor funds for personal gain and for individuals who did not provide any legitimate services in return. Additionally, Singh diverted over $19 million of investor funds to two brokerage accounts under his control and engaged in highly speculative equities trading, resulting in losses exceeding $1 million of investor money.

Eric I. Bustillo, Director of the SEC’s Miami Regional Office, stated, “As alleged in our complaint, Singh targeted many members of the Haitian-American community to raise money in a Ponzi-like scheme to enrich himself. We are committed to holding accountable individuals like Singh who prey on investors through lies and deceit.”

The SEC’s complaint, which has been filed in the U.S. District Court for the Southern District of Florida, charges Singh and Royal Bengal Logistics with violating federal securities laws related to registration and anti-fraud provisions. Sheetal Singh, Sanjay Singh’s spouse, and Constantina Celicourt, the spouse of Royal Bengal Logistics’ Vice President of Business Development, have also been named as relief defendants in the complaint. The District Court has granted the SEC’s request for emergency relief, including preliminary injunctive measures, asset freezes, the appointment of a Receiver, and an order to prevent the destruction of relevant documents. The SEC is seeking an officer and director bar against Singh, as well as permanent injunctions, civil money penalties, and disgorgement of ill-gotten gains with prejudgment interest against both Singh, Royal Bengal Logistics, and the relief defendants.

To educate and protect investors, the SEC’s Office of Investor Education and Advocacy, in conjunction with the Division of Enforcement’s Retail Strategy Task Force, has issued an Investor Alert outlining guidelines on how to avoid making investment decisions solely based on common affiliations with individuals recommending or selling the investment.

The SEC acknowledges the valuable assistance provided by Florida’s Office of Financial Regulation, the U.S. Attorney’s Office for the Southern District of Florida, the FBI’s Miami Field Office, and the U.S. Department of Transportation’s Office of Inspector General, Southern Region, during the investigation.

The SEC’s investigation, conducted as part of the Miami Regional Office’s Fraud Against Minority Groups Initiative, was led by Linda S. Schmidt and supervised by Sean M. O’Neill and Glenn Gordon, with support from Mark Dee, Fernando Torres, and Ivette Goizueta-Mendes. Russell O’Brien will lead the SEC’s litigation efforts, under the supervision of Teresa J. Verges.