The U.S. Securities and Exchange Commission charged Florida resident Sanjay Singh with operating a $112 million Ponzi scheme that targeted members of the Haitian-American community.
Singh and his trucking company, Royal Bengal Logistics Inc., have been charged with allegedly defrauding investors, primarily targeting Haitian-Americans, and raising approximately $112 million through an unregistered securities offering, according to a June 26 news release.
“As alleged in our complaint, Singh targeted many members of the Haitian-American community to raise money in a Ponzi-like scheme to enrich himself,” Eric I. Bustillo, director of the SEC’s Miami regional office, said in the release. "We are committed to holding accountable individuals like Singh who prey on investors through lies and deceit.”
Singh and his company reportedly offered high-yield investment programs with guaranteed returns ranging from 12.5 to 325%, the release reported. They promised investors the funds would be used to expand operations and increase their fleet.
However, the SEC alleges Royal Bengal operated at a loss and used new investor funds to make payments to other investors, resembling a Ponzi scheme, according to the release. Singh is accused of misappropriating at least $14 million of investor funds for personal use and diverting more than $19 million to brokerage accounts he controlled, resulting in substantial losses.
"Singh also allegedly diverted more than $19 million of investor funds to two brokerage accounts he controlled, engaged in highly speculative equities trading on margin in those accounts, and, as a result, lost more than $1 million of investor money," the news release said.
The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, charges Singh and Royal Bengal with violating securities laws, the release said. Singh's spouse, Sheetal Singh, and Royal Bengal's vice president of business development's spouse, Constantina Celicourt, are also named in the complaint.
The SEC has obtained emergency relief, including asset freezes and the appointment of a receiver, to protect investors' interests, according to the release.
The SEC acknowledges the collaboration of various organizations, including Florida's Office of Financial Regulation, the U.S. Attorney's Office, the FBI and the U.S. Department of Transportation, the release said. The investigation was conducted as part of the Miami Regional Office's Fraud Against Minority Groups Initiative.
The SEC's Office of Investor Education and Advocacy, along with the Division of Enforcement's Retail Strategy Task Force, issued an investor alert advising investors to avoid making investment decisions solely based on common ties with those recommending or selling investments, the release said.
