The Securities and Exchange Commission (SEC) has charged a popular “Cash Flow King” podcast host in connection with an $11 million Ponzi scheme. The podcast host, Paul R. Harper, ran an investment fund called the Full Disclosure Fund. The SEC alleges that Harper misled investors by making false statements about the fund’s performance and the use of investor money.
The SEC’s complaint charges Harper with making fraudulent, material misstatements and omissions about the Full Disclosure Fund to solicit investments from at least 72 investors. Harper also allegedly used investors’ proceeds to pay earlier investors, as well as himself.
Harper allegedly told investors that the fund was consistently generating risk-free returns of 14 to 18 percent per year. In reality, the fund lost money and Harper used investor money for his own personal expenses. According to the complaint, Harper diverted nearly $3 million from the fund to his personal bank accounts.
The SEC is seeking final judgment against Harper that would permanently enjoin him from future violations of the federal securities laws, and also disgorgement of all ill-gotten gains, plus interest and penalties. Harper also faces criminal charges in connection with the fraud.
