Subscribe

SEC freezes assets of group charged with $55 million Ponzi scheme

The headquarters building of the U.S. Securities and Exchange Commission (SEC) stands in Washington, D.C., U.S. Photographer: Joshua Roberts/Bloomberg

Daniel B. Rudden and Denver-based Financial Visions allegedly defrauded 150 investors

The Securities and Exchange Commission froze the assets of a Denver-based group of companies and their principal, and charged the group with defrauding at least 150 investors in a $55 million Ponzi scheme.

Daniel B. Rudden and a group of companies operating under the name Financial Visions allegedly issued promissory notes to fund the companies’ operations providing short-term financing for funerals and related expenses. Investors were promised annual returns of 12% or more.

Mr. Rudden and Financial Visions could not be reached for comment.

(More: SEC charges RIA and CEO with putting $19 million of client money into risky investments)

Mr. Rudden is charged with using new investor funds to pay interest and redemptions to existing investors since 2010 or 2011. The SEC alleged that Mr. Rudden concealed the Financial Visions companies’ true financial performance and condition.

Mr. Rudden is also charged with representing the business as successful to existing and prospective investors when he knew he was running a Ponzi scheme.

(More: SEC charges eight in $102 million Ponzi scheme)

The SEC complaint was filed in federal court in Denver, Colo., on July 19. The SEC seeks permanent injunctions, disgorgement plus interest and penalties.

The SEC also named three entities, which the agency alleges were controlled by Mr. Rudden and received investor funds from the alleged Ponzi scheme, as relief defendants.

(More: SEC bars Washington State RIA for selling unregistered promissory notes)

Related Topics:

Learn more about reprints and licensing for this article.

Recent Articles by Author

Treasury options traders keep Fed hike on table

But they are also positioning for the potential for multiple rate cuts.

Deutsche buybacks at risk amid $1.4B legal action fund

The banking group is being challenged over a takeover in 2010.

New bid for song catalog fund puts Blackstone at #1

Board prefers the latest offer rather than Concord bid.

FX traders wonder when Tokyo will support the yen

Currency continues to fall but investors hope for assisted rebound.

Credent Wealth Management attracts two new partner-advisors

Indiana-based $2.5B RIA has added 12 firms since it was founded in 2018.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print