DollarMonster a Monster of a Ponzi Scheme

The Securities and Exchange Commission has filed charges against a Georgia man it says operated a Ponzi scheme using a website to lure individuals into investing in a nonexistent hedge fund, raising more than $1.15 million in the process.

According to the SEC complaint, James A. Evans, Jr., of Villa Rica, Georgia, used the business name DollarMonster and established a website called CashFlowBot.com where he promoted DollarMonster as a private fund delivering large returns. The SEC alleges that from January 2012 to April 2014, Evans misrepresented DollarMonster as a private fund that invested in precious metals, real estate, stocks and bonds.

In addition, Evans is accused of informing investors that DollarMonster consistently paid out more to investors than they had invested in the fund. The website allegedly contained a number of misrepresentations, including that DollarMonster was “a successful group of experienced Internet investors” and that the company was a “financial advisor with more than 120 management teams and $38 million of assets under management.”

The SEC charges that Evans raised $1.15 million from investors and redistributed approximately $1.06 million of the money raised as investment returns, keeping the rest for his personal use.

Evans is charged with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 206(4) of the Investment Advisers Act of 1934.

The Cogdell Law Firm is a boutique law firm focusing on large, complex business and criminal financial-related litigation, including white collar criminal defense, securities fraud, health care fraud investigation, criminal appeals and state criminal defense. When results matter most, contact Dan Cogdell at (713) 426-2244 or info@cogdell-law.com.

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