SEC Settles Charges Involving Ponzi Scheme Targeting U.S. Military Service Members
A Colorado man recently settled charges after he defrauded over 40 investors, including U.S. military service members and others.
The Securities and Exchange Commission alleges that Milton J. Dosal, Jr. raised around $100,000 over a two-year period from approximately 41 investors. Dosal met a number of these investors through car club events, the SEC says. Nearly a quarter of the investors that Dosal defrauded were cadets at the U.S. Air Force Academy
According to the complaint, Dosal, who has never held any securities license, falsely held himself out as a securities professional. The SEC finds that he misled investors about his trading activity and their investment returns. Dosal told investors that they could, with little risk, expect weekly returns of up to 10 percent, the complaint alleges. In reality, Dosal used fake stockbroker agreements and false account balances for some investors.
According to the SEC, Dosal used investor funds for personal expenses and diverted new investor funds to pay back prior investors, in a Ponzi-scheme fashion
Dosal, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of a final judgment permanently enjoining him from violating the antifraud and broker-dealer registration provisions of the federal securities laws. Dosal agreed to return $51,633 of allegedly ill-gotten gains plus prejudgment interest of $3,503, and to pay a $51,633 civil penalty.