In addition, they allegedly told investors that Horizon will generate income by investing their funds in government bonds, stocks, or small real estate properties. In reality, Horizon did not generate any substantial profits from legitimate investments.
Instead, the defendants raised money from new investors to pay returns to earlier investors, a classic Ponzi scheme.
“The assets owned by Woods and the entities under his control, including Southport and Horizon, are worth far too little for there to be any realistic prospect that the Ponzi scheme will be able to pay back existing investors their principal, let alone the promised returns. Investors trusted Woods and the Southport investment advisers working at his direction, and they stand to lose significant portions of their retirement savings when the Ponzi scheme inevitably collapses. The longer the scheme continues, the larger the losses will be for those left holding the bag,” according to the SEC in the lawsuit.
In a statement, SEC Atlanta Regional Office Director Nekia Hawke said the defendants exploited their “client’s fears of losing their hard-earned savings and convinced them to place millions of dollars into a Ponzi scheme by falsely promising them a safe investment with steady returns.”
