The Securities and Exchange Commission (SEC) recently filed a complaint in the U.S. District Court for the Eastern District of Texas charging three Dallas-Fort Worth residents with operating a Ponzi scheme that raised at least $91 million from more than 200 investors.
In the complaint, Kenneth W. Alexander II, Robert D. Welsh, and Caedrynn E. Conner are charged with violating the antifraud and registration provisions of the federal securities laws.
“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, SEC Division of Enforcement acting director, said. “We remain unwavering in our commitment to hold individuals accountable for defrauding investors.”
The SEC alleges that between approximately May 2021 and February 2024 Alexander and Welsh operated the scheme through a trust controlled by Alexander called Vanguard Holdings Group Irrevocable Trust (VHG). Conner funneled more than $46 million in investor money to VHG through Benchmark Capital Holdings Irrevocable Trust, a related investment program he controlled.
The complaint alleges the men told investors they would receive 12 guaranteed monthly payments of between 3 percent and 6 percent monthly with the principal investment returned after 14 months.