CaribWorldNews, WEST PALM BEACH, FL, Fri. Nov. 20, 2009: A Florida man has agreed to pay civil penalties for an alleged Ponzi scheme he executed that targeted Haitian-Americans.
George Theodule agreed to the deal and an injunction in the case without admitting or denying the allegation against him. He also agreed to pay disgorgement and prejudgment interest, according to court documents.
The U.S. Securities and Exchange Commission claimed last December that Theodule`s Creative Capital Consortium LLC and A Creative Capital Concept$, LLC began conducting the ponzi scheme as early as November 2007 by urging investors to form investment clubs to funnel funds to Theodule and Creative Capital.
Theodule allegedly solicited investors by guaranteeing a 100 percent return on their investment within 90 days based on his claimed successful trading of stocks and options. According to the SEC`s complaint, investors also were promised that Creative Capital`s trading profits were being used to fund new business ventures, including some to benefit the Haitian community in the U.S., Haiti, and Sierra Leone.
The SEC alleges that Theodule lost at least $18 million trading stocks and options just over the last year, and Creative Capital merely repaid earlier investors with monies collected from new investors in typical Ponzi scheme fashion. The SEC also alleges that Theodule has commingled investor funds with his personal funds and misappropriated at least $3.8 million for himself and his family.