Diversity Capital Investments Sued by SEC in Southern California Ponzi Scheme
July 31, 2009 - Damian Meneses, Edward Lantz Ferguson, Joel S. Ley, Jr. and their four business entities were charged with securities fraud on Monday by the Securities and Exchange Commission ("SEC"). The SEC claims they were& operating a Ponzi scheme primarily based on foreign currency trading. The alleged scheme was mostly operated out of Southern California and involved investors from both the U.S. and Mexico. The SEC claims that Meneses, Ferguson, and Ley raised at least $14 million on their promises of guaranteed returns on investment in foreign currency trading.
The SEC's complaint alleges that Meneses, 37, guaranteed a 4% monthly return to investors in his company Diversity Capital. Diversity Capital was allegedly affiliated with Diversity Capital Bancorp de Mexico, Ltd., located in New Zealand. Meneses claimed that Diversity Capital invested clients' money in foreign currency trading. He encouraged investors to refinance their mortgages and invest the earnings in his company. According to Diversity Capital's website, the company manages over $1.7 billion. The SEC claims that the funds invested in Diversity Capital were not used for currency trading, but instead for personal bills of Meneses and to pay earlier investors in a Ponzi-like fashion.
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