WASHINGTON, DC – APRIL 25: The Securities and Exchange Commission headquarters is seen on April 25, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)
The Brief
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The Securities and Exchange Commission charged three DFW residents with running a $91 million Ponzi scheme.
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Kenneth Alexander II, Robert D. Welsh and Caedrynn E. Conner are accused of taking money from more than 200 investors by funneling money into a trust controlled by Alexander that was touted as an international bond trading business, the SEC said.
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The trio is accused of violating federal securities laws, specifically the antifraud and registration provisions.
DALLAS – Three Dallas-Fort Worth residents are accused of defrauding investors in a $91 million Ponzi scheme, the Securities and Exchange Commission said.
Kenneth Alexander II, Robert D. Welsh and Caedrynn E. Conner are accused of taking money from more than 200 investors by funneling money into a trust controlled by Alexander that was touted as an international bond trading business, the SEC said.
What they’re saying
“As we allege, the defendants conducted a large-scale Ponzi scheme that caused devastating losses to investor victims, while Alexander and Conner misappropriated millions of dollars of investor funds,” Sam Waldon, Acting Director of the SEC’s Division of Enforcement, said. “We remain unwavering in our commitment to hold individuals accountable for defrauding investors.”
What we know
According to the SEC, Alexander and Welsh operated a trust called Vanguard Holdings Group Irrevocable Trust and promised investors 12 guaranteed monthly payments of between 3% and 6%, with their principal investment returned in 14 months.
Conner is accused of moving more than $46 million in investor money to the trust through an investment program he operated and controlled through Benchmark Capital Holdings Irrevocable Trust.
The trio offered investors a way to protect their investments from loss by purchasing a “pay order.”
The SEC said the “pay order” was fake and that the trust had no material source of revenue and that all monthly returns were Ponzi payments.
Alexander and Conner are also accused of misappropriating funds for personal use. The SEC said Conner used part of the funds to purchase a $5 million home.
The trio is accused of violating federal securities laws, specifically the antifraud and registration provisions.
What’s next
Prosecutors are asking for the money to be returned to investors with interest, in addition to any civil penalties brought against the group.
The Source
Information in this article comes from the Securities and Exchange Commission.