SEC alleges Inventis duo ran $26.5M Ponzi-like investment scheme

A California couple is accused by the SEC of orchestrating a $26.5 million Ponzi-like scheme that promised investors monthly returns as high as 15%. 

Federal regulators have charged Linh Thuy Le and her husband, Trong Hoang Luu, with running what they describe as a fraudulent investment operation that targeted more than 1,400 people across multiple states. According to a complaint filed in the U.S. District Court for the Central District of California, the pair allegedly solicited investors — many from Vietnamese and Latino communities — by touting guaranteed, high returns through their companies, Inventis Ventures, LLC and Inventis Ventures Holding, Inc. 

The SEC claims that from March 2022 to November 2023, Le and Luu raised at least $26.5 million in an unregistered securities offering. Investors were told they could expect returns of 15% per month or at least 360% per year, with their principal returned after one year, for a minimum investment of $5,000. The complaint alleges that Le and Luu gave varying explanations about how the money would be invested, including references to real estate, health insurance investments, and access to a bank providing 40% returns. The SEC says Le and her employees assured investors their money was “guaranteed,” “safe,” or “insured.” 

But the SEC contends that, instead of investing the money as promised, Le and Luu misappropriated funds for personal benefit, paid referral fees, and made Ponzi-like payments to earlier investors. According to the complaint, Luu signed more than 95% of the checks issued by Inventis, including over 96% of those used for approximately $16.5 million in distribution payments and about $1.5 million in referral fees. 

The complaint details how the scheme began to collapse in or about September 2023, when checks to investors started bouncing and payments stopped. Despite this, the SEC alleges, Le and Luu continued to solicit new investments and made further misleading statements, attributing payment delays to “bank audits” and “banking compliance issues.” As the operation unraveled, the complaint states, the couple directed investors to other ventures, including Apex Bank, which had been ordered to cease operations by the Georgia Department of Banking and Finance, and Trage Technologies, Ltd., which was later charged with securities violations in California and Texas. 

The SEC is seeking permanent injunctions, disgorgement of funds, and civil penalties against Le and Luu. The agency also seeks to bar them from participating in the issuance, purchase, offer, or sale of any security, except for their own personal accounts. 

These are allegations that have not yet been proven in court. Le and Luu will have the opportunity to respond to the charges.