Additionally, the department alleged that Schmidt’s investment funds had insufficient funds to pay investors and expenses by January 2014. He deposited fake and forged checks into the bank accounts of his investment funds and then transferred the money to the bank accounts of related investment funds to pay investors and expenses. He also lied to investors about their investments.
When his Ponzi scheme continues to collapse, Schmidt fled to London on April 10, 2014. He stayed there until his arrest and extradition.
A federal court entered a final judgment against Schmidt in the SEC lawsuit
In June 2014, the U.S. Securities and Exchange Commission (SEC) sued Schmidt and his investment funds for operating a Ponzi scheme. The federal court in DC entered a final judgment against Schmidt in October 2018 and his investment funds in 2019.
Schmidt is a classic scammer who repeatedly violated securities laws. Over the years, he has been convicted of financial crimes.
In 2003, he engaged in a payday scheme. The Pennsylvania Securities Commission stopped him from continuing to operate that payday scheme.
