SEC Charges Wilson Baston with Defrauding Investors in Ponzi Scheme
The Securities and Exchange Commission (SEC) has taken legal action against Wilson Baston for his involvement in a Ponzi scheme that defrauded numerous investors. Baston raised millions of dollars through multiple transactions, claiming the funds would be used for real estate investments. However, he misappropriated the money to pay off earlier investors and fulfill personal expenses. This fraudulent scheme has led to serious consequences for Baston, who previously pleaded guilty to deceiving hundreds of investors in a similar Ponzi scheme back in 2008.
Baston’s Use of Aliases
Following his release from prison in 2017, Baston adopted various aliases, including the name Chanon Gordon, to present himself as an expert in the real estate industry. He approached investors, promoting Gordon Management Group LLC as a genuine real estate company and enticing them to invest. Baston assured them that their funds would be utilized for specific real estate transactions. In return, he provided investors with short-term promissory notes, promising quick returns within days or weeks, accompanied by a significant fee, often amounting to 25% of their investment. Additionally, Baston offered some investors a share of the profits generated from the transactions.
Misuse of Investor Funds
Unfortunately, instead of fulfilling his promises and utilizing the funds for the intended real estate transactions, Baston diverted the money to pay earlier investors and cover his personal expenses. The SEC’s complaint reveals that he manipulated investors by using an alias to conceal his criminal history and by initially making payments to create the illusion of a successful investment strategy. Baston’s deceitful actions and misuse of investor funds are clear violations of the antifraud provisions outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934.
Tejal D. Shah, Associate Regional Director of the SEC’s New York Regional Office, stated, “As we allege in our complaint, Baston deceived investors by using an alias to conceal his criminal history and by initially making payments to create the false appearance of a successful investment strategy. This case is yet another example of the SEC’s constant efforts to stop those who profit from lies at the expense of investors.”
Legal Consequences and Charges
The SEC has filed a complaint against Wilson Baston in the Federal District Court for the Southern District of New York. The complaint accuses him of violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC seeks the following remedies: permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, imposition of a civil penalty, a conduct-based injunction prohibiting his participation in the sale of promissory notes and investment contracts, and an officer and director bar.
Simultaneously, the U.S. Attorney’s Office for the Southern District of New York has also announced criminal charges against Wilson Baston, further intensifying the legal repercussions he faces.
For more information, or to speak to a securities attorney, visit New York Securities Lawyer at www.securitieslawyer.us.
