The Securities and Exchange Commission (SEC) filed charges against two Maryland companies and their principals for allegedly defrauding around 1,200 investors in a Ponzi scheme.
The defendants, 1st Million LLC and Smart Partners LLC, and their principals, Dennis Jali, John Frimpong, and Arley Johnson fraudulently raised $27 million from unsuspecting investors, according to the SEC in the lawsuit.
Allegations against the Ponzi scheme operators
The Commission alleged that the defendants’ offered and sold purported investment contracts and limited partnership agreements to investors in Maryland, Georgia, Florida, Texas, and other states.
Their victims are mostly African immigrants, health care workers, and Church members whom they promised guaranteed monthly or quarterly returns of around 6% to 42% or a minimum investment of $5,000. Jali, Frimpong, and Johnson earned the trust of their victims by exploiting their common ancestry and religious affiliation.
In addition, the defendants allegedly falsely claimed that a team of licensed and skilled traders in cryptocurrency and forex will be managing the funds. Jali claimed to be a pastor, an expert trader, and a self-made millionaire.
