Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Federal authorities have charged Paul Regan with conspiracy, securities fraud, and wire fraud in connection with a scheme that allegedly defrauded more than 300 investors of over $60 million through two investment ventures, Next Level Holdings and Yield Wealth Ltd. The indictment was unsealed following Regan’s arrest in the Southern District of Florida on September 4, 2025, after his removal from Colombia. U.S. District Judge Valerie E. Caproni is assigned to the case.
“As alleged, Paul Regan promised high returns but, in reality, he simply used money from new investors to pay off old investors, keeping the fraud going until pointed questions were asked,” said U.S. Attorney Jay Clayton. “There is no place in our markets for scammers, particularly those who prey on Main Street investors. The women and men of the Southern District are committed to putting these scammers out of business permanently.”
“Paul Regan allegedly defrauded over 300 investors of more than $60 million through false promises of protected investments and guaranteed returns while using these deposits to quietly repay other entities,” said FBI Assistant Director in Charge Christopher G. Raia. “This alleged scheme was shrouded in deceit to entice hundreds of clients before ultimately betraying their confidence and their savings. The FBI will continue to investigate all widespread schemes exploiting the wallets of victims, regardless of where the defendant may be located.”
According to court documents, between 2022 and December 2024 Regan and associates marketed investment products through Next Level Holdings (“Next Level”) and Yield Wealth Ltd. (“Yield”), making misleading claims about how investor funds would be used and what protections would be provided against losses.
Regan presented himself as CEO of Next Level and claimed it supported mining operations in Colombia by providing capital and operational assistance in exchange for discounted precious metals that could be sold at a profit. He began selling “Next Level Holdings Principal & Interest Protected Guaranteed Notes” around mid-2022, promising double-digit annual yields—typically between 12% and 15%—with supposed insurance backing that would guarantee both principal and interest payments.
Marketing materials distributed by Regan stated that investments were fully insured by companies based in Colombia (Company-1) and the United States (Company-2), offering “ultimate safety” for retirement portfolios during uncertain times.
Between 2022 and late 2024, approximately 300 such notes were sold to investors who sent over $45 million to businesses controlled by Regan.
In early 2024, Regan launched Yield as an alternative banking venture claiming higher returns on savings with greater protections than traditional banks. By March 2024 he began selling “Mega High Yield Term Deposits” and “Super High Yield Term Deposits,” again promising high annual yields up to 10.5%, full insurance coverage up to $10 million per deposit, and secure returns generated from diverse portfolios including mining operations or investments related to the Affordable Care Act.
Yield reportedly sold about 85 term deposits totaling more than $15 million throughout 2024.
However, investigators allege that neither company invested meaningfully as advertised; instead they operated as a Ponzi scheme—using funds from new investors to pay earlier ones or commissions—and misappropriated investor money for personal use or transfers unrelated to generating promised returns.
Despite claims about robust insurance protection for investments made through Next Level Notes or Yield Term Deposits, authorities say most policies were either not purchased or not maintained; many documents sent as proof of insurance were allegedly forged.
On August 30, 2024 a news article raised skepticism about Yield’s legitimacy; despite this scrutiny Regan encouraged sales staff via videoconference to continue promoting deposits. Both ventures closed around November 2024 leaving losses exceeding $50 million among investors.
Regan faces charges including one count each of conspiracy (maximum five years imprisonment), securities fraud (up to twenty years), wire fraud (up to twenty years), and aggravated identity theft (mandatory two-year sentence).
U.S. Attorney Jay Clayton acknowledged assistance from several agencies including the U.S. Securities and Exchange Commission—which has filed a civil enforcement action—the Justice Department’s Office of International Affairs, officials from Bogotá’s Office of Judicial Attaché within the Criminal Division’s Narcotic and Dangerous Drug Section, as well as Colombian authorities.
The case is managed by the Securities and Commodities Fraud Task Force within the U.S. Attorney’s Office; Assistant U.S. Attorneys Thomas S. Burnett and Maggie Lynaugh are prosecuting.
All charges remain allegations at this stage; Regan is presumed innocent unless proven guilty in court.
