SEC Names Multiple Defendants in Action Alleging $450 Million Ponzi Scheme

INVESTORS: The SEC filed charges against multiple individuals for promoting investments in a $450M Ponzi scheme.

On June 29, 2022, the Securities and Exchange Commission filed charges against eight additional individuals-Larry Jeffery, Jason A. Jenne, Seth Johnson, Christopher M. Madsen, Richard R. Madsen, Mark A. Murphy, Cameron Rohner, and Warren Rosegreen-for allegedly promoting investments in a nearly half-billion dollar Ponzi scheme in the Las Vegas, Nevada area. 

The SEC’s initial complaint, filed in April 2022, alleged that attorney Matthew Beasly, Jeffrey Judd, and Christopher Humphries made false statements to induce investors to buy interests in purported tort settlement agreements, when in fact investors’ money was used to finance the perpetrators’ luxurious lifestyles and to pay fictitious Ponzi-like returns to investors to keep the scheme going. The complaint also charged Judd, Humphries, and defendants Shane Jager, Jason Jongeward, Denny Seybert, and Roland Tanner with acting as unregistered brokers in promoting the alleged scheme.

After filing their initial complaint, the SEC obtained a temporary restraining order  and asset freeze against the defendants named in that  complaint. On April 21, 2022, the SEC obtained preliminary injunctions against the defendants and a continuation of the asset freeze for the duration of the SEC’s case. On June 3, 2022, the court appointed a receiver to, amongst other things, marshal and take control over the assets of the defendants named in the initial complaint for the benefit of investors.

The amended SEC complaint charges the eight additional defendants , Jeffery, Jenne, Johnson, Christopher Madsen, Richard Madsen, Murphy, Rohner, and Rosegreen, with violating the broker registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934 and the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties against all of the additional defendants.

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