Washington D.C., Dec. 14, 2023- The SEC has charged Titanium Capital LLC, a Florida-based firm, and its founder, Henry Abdo, with operating a multi-million dollar Ponzi scheme.
Unraveling the Deceptive Web of Titanium Capital
Titanium Capital, spearheaded by Henry Abdo, is accused of raising at least $5.3 million from over 160 retail investors in the United States and internationally.
The Fabrication of a “Multi Currency Investment Fund”
According to the SEC’s complaint, Titanium’s strategy was to claim to invest in a “Multi Currency Investment Fund,” backed by a proprietary currency exchange. They boasted of consistently high returns, including up to 102 percent compounded interest over five years. The SEC alleges that such claims ere unsubstantiated and misleading.
Carol Ann Barsh’s Role in Soliciting Investors
Carol Ann Barsh, a representative of Titanium, played a crucial role in attracting investors to this scheme. Her involvement highlights the significance of due diligence in the role of financial representatives and advisors.
The False Pretense of SEC Registration and Scrutiny
Titanium and Abdo falsely claimed their firm was registered with and closely examined by the SEC. This deceit was a major factor in convincing investors of the legitimacy and safety of their investments.
Misappropriation of Funds: A Ponzi Scheme Hallmark
In a typical Ponzi scheme fashion, Titanium and Abdo allegedly used investor funds for personal gain, including luxury items and entertainment, while making Ponzi-style payments to earlier investors. This misuse of funds is a classic red flag in investment fraud.
The SEC’s Legal Action: Seeking Accountability
The SEC’s complaint, lodged in the U.S. District Court for the Southern District of Florida, charges Titanium and Abdo with violating anti-fraud provisions. Along with Barsh, they face charges for failing to register the offering of their securities. This legal pursuit underscores the SEC’s dedication to protecting investors and maintaining market integrity.
The Legal Consequences Sought by the SEC
The SEC seeks injunctive relief, disgorgement of ill-gotten gains, and civil penalties against Titanium, Abdo, and Barsh. Additionally, the complaint seeks to bar Abdo from participating in any future securities offerings and from serving as an officer or director of any public company.
Additional Defendants and Relief Sought
The complaint also names Elias Halim Abdo and Ganna Migulina, relatives of Henry Abdo, as relief defendants, indicating the broad scope of the alleged fraudulent activities.
Parallel Criminal Proceedings
In a concurrent development, the U.S. Attorney’s Office for the Southern District of Florida has announced criminal charges against Abdo, adding a new dimension to the legal repercussions he faces.