Sunday, March 7, 2010

Texas Ex-Con Charged With Running $6 Million Ponzi Scheme

Alan Todd May, 45, of Dallas, Texas, was accused by the SEC Thursday with running an Ponzi-type investment fraud scheme that bilked investors out of as much as $6 million. According to reports, May has 14 prior criminal convictions for fraud. According to the complaint, since his release from prison in 2007 on other charges, May operated Prosper Oil & Gas Co., and raised $6 million from at least 99 investors. Instead of investing the funds, which he promised that investors would earn between 25 and 38 percent annually from revenues based on oil and gas production, May used the money to support a lavish lifestyle and pay for luxury automobiles and an aircraft, according to the SEC. May also used investment funds to pay earlier investors, in classic Ponzi scheme style.

Read the story here.

Read the SEC complaint here.

No comments: