The U.S. Securities & Exchange Commission filed a civil complaint charging Dallas-Fort Worth residents Kenneth W. Alexander II, Robert D. Welsh, and Caedrynn E. Conner with operating a Ponzi scheme that raised at least USD 91 million from more than 200 investors. According to the complaint, between approximately May 2021 and February 2024, Alexander and Welsh ran the scheme through Vanguard Holdings Group Irrevocable Trust, which Alexander controlled, promising 12 “guaranteed” monthly payments of 3% to 6% per month and return of principal after 14 months. The SEC alleges the defendants falsely portrayed the business as a highly profitable international bond trading operation, while Conner funneled more than USD 46 million to Vanguard through a related program operated via Benchmark Capital Holdings Irrevocable Trust, which he controlled, and marketed purported “pay orders” as investment protection despite the SEC alleging there was no material revenue source and the protections were illusory. The complaint further alleges Alexander and Conner misappropriated millions in investor funds for personal use, including Conner’s purchase of a USD 5 million home. The case was filed in the U.S. District Court for the Eastern District of Texas and alleges violations of antifraud and registration provisions of the federal securities laws; the SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties.
U.S. Securities & Exchange Commission 2025-04-29
U.S. Securities & Exchange Commission charges three Texans over a $91 million Ponzi scheme
The U.S. SEC filed a civil complaint against Kenneth W. Alexander II, Robert D. Welsh, and Caedrynn E. Conner for a Ponzi scheme raising at least USD 91 million from over 200 investors. Run through Vanguard Holdings Group Irrevocable Trust, it falsely promised high returns and misappropriated funds for personal use. The SEC seeks permanent injunctions, disgorgement, and civil penalties for antifraud and registration violations.