North Texas Trio Accused of Masterminding $91M Investor Scam

The Securities and Exchange Commission has filed charges against three individuals residing in DFW for allegedly running a Ponzi scheme that defrauded over 200 investors out of approximately $91 million.

According to the SEC complaint, the three individuals—Kenneth Alexander, Robert Welsh, and Caedrynn Conner—carried out their operation via a trust named Vanguard Holdings Group Irrevocable Trust from May 2021 to February 2024.

As stated in the complaint, they assured investors of receiving 12 secured monthly payouts ranging from 3% to 6%, with the initial capital expected back after 14 months.

These three allegedly provided investors with an opportunity to purchase what was described as a "payment bond" aimed at safeguarding their investments. Nevertheless, according to allegations from the SEC, VHG did not have any legitimate income stream. These regular payouts were supposedly part of a Ponzi scheme, and the so-called "payment bond" protection appears to be entirely fictitious.

The three are accused of misappropriating millions of investor funds for personal use in the complaint, including the purchase of a $5 million home.

“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,” said Sam Waldon, Acting Director of the SEC’s Division of Enforcement, in a statement. “We remain unwavering in our commitment to hold individuals accountable for defrauding investors.”

The trio has faced accusations for breaching antifraud and registration laws. The SEC aims to obtain permanent injunctions against them, along with the recovery of illicitly obtained funds including interest and imposition of civil fines.