U.S. SEC announces asset freeze against those allegedly behind nearly $450 million Ponzi scheme

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) on Friday announced charges and an asset freeze against several Las Vegas-area individuals and companies allegedly behind a nearly $450 million Ponzi scheme.

In a complaint filed in U.S. District Court in Las Vegas, the SEC said attorney Matthew Beasley, as well as Jeffrey Judd and Christopher Humphries, falsely told hundreds of investors that they would earn 12.5% quarterly returns by making purportedly risk-free investments in J&J Consulting Services.

“Beasley and Judd created the company to supposedly advance funds to tort plaintiffs who had reached settlements with insurance companies. But, according to the complaint, none of the $449 million raised from investors over a five-year period was used for this purpose,” the SEC said.

(Reporting by Kanishka Singh in Washington; editing by Jonathan Oatis)