Dallas Residents Charged in $91 Million Ponzi Scheme: SEC Takes Action
WASHINGTON, DC — April 25, 2025 — The Securities and Exchange Commission (SEC) has accused three Dallas-Fort Worth residents of orchestrating a $91 million Ponzi scheme that defrauded over 200 investors. The individuals named in the charges are Kenneth Alexander II, Robert D. Welsh, and Caedrynn E. Conner.
The SEC alleges that the defendants misled investors by promoting an international bond trading venture through a trust controlled by Alexander, which was named Vanguard Holdings Group Irrevocable Trust. Investors were enticed with promises of 12 guaranteed monthly payments ranging from 3% to 6%, along with the return of their principal after 14 months. However, the SEC claims that the trust lacked any genuine revenue streams and instead relied on funds from new investors to pay earlier ones—a hallmark of Ponzi schemes.
According to SEC officials, Sam Waldon, Acting Director of the SEC’s Division of Enforcement, stated, “As we allege, the defendants conducted a large-scale Ponzi scheme that caused devastating losses to investor victims, while Alexander and Conner misappropriated millions of dollars of investor funds.” Conner is accused of transferring over $46 million into the trust through a separate investment program, and he allegedly used part of the funds to acquire a $5 million home.
Both Alexander and Conner face accusations of using the misappropriated funds for personal gains. The SEC has charged the individuals with violations of federal securities laws, particularly the antifraud and registration provisions.
Moving forward, prosecutors aim to recover the lost funds for investors with added interest, as well as pursue civil penalties against the accused. The case underscores the SEC’s commitment to holding financial wrongdoers accountable.
For further information, visit the SEC’s official announcements.
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