Notable February 2022 Ponzi Schemes
From the Desk of Jim Eccleston at Eccleston Law:
As we turn the calendar over to March, let’s recap some of the notable investment advisors who were indicted for conducting Ponzi schemes in February 2022.
In one case, Dawn Bennett had a judgement entered against her related to the Ponzi scheme she orchestrated through DJB Holdings and DJBennett.com. Bennett, 58, was ordered to pay $14.5 million in restitution and is serving a 20-year prison sentence. Bennett, who generated nearly $20 million from 46 investors, allegedly informed investors that her company would become a sportswear behemoth that would rival Under Armour.
In another case, Rudy Avila received a 17-year prison sentence and was ordered to pay at least $14.9 million in restitution pertaining to a Ponzi scheme she allegedly conducted through Starwood Asset Management Fund and Commodities Investment Group International. Avila, 69, regularly wired nearly 90% of investment funds to co-conspirators in Costa Rica.
Arizona resident, Bradley Heinrichs, was indicted on charges pertaining to an alleged $82 million Ponzi scheme. Heinrichs, 41, and several co-conspirators orchestrated a scheme involving the sale of Arizona real estate. Heinrichs and the co-conspirators allegedly promised double-digit returns to at least 110 investors.
Finally, Zachary Horowitz allegedly conducted a $650 million Ponzi scheme, which defrauded at least 200 investors. Horowitz, 35, received a 20-year prison sentence and was ordered to pay nearly $230 million in restitution. The scheme was operated through 1inMM Capital LLC and involved sham film licensing deals. Horowitz allegedly promised returns from the purported license to distribute films to Netflix and HBO.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.