Garfield M. Taylor, of Bethesda, Maryland, was recently charged by the
Securities and Exchange Commission (SEC) with running a
Ponzi scheme that took millions from investors. The alleged investment scam is said
to have affected about 130 investors over the five years it ran.
According to the charges, Taylor targeted mostly unsophisticated and beginner
investors in Washington, DC to put money into promissory notes issued
by his companies. He allegedly enticed investors by claiming the promissory
notes would be a low-risk investment that could yield returns of 20% annually.
There are reports that he encouraged investors to dip into retirement
funds, refinance their homes, and use their savings to invest.
Unfortunately, according to the SEC's complaint, Taylor instead used
investor cash to dabble in risky investments and pay off prior investors.
Officials allege that he used at least $5 million of his investors'
cash for himself, including sending his children to private school and
giving payments to family and friends.
Beyond the Ponzi scheme structure of the deal, Taylor and his alleged
co-conspirators also allegedly violated registration requirements, made
false and misleading statements to investors, and preyed on organizations
such as churches and charities.
Ponzi scheme lawyers with Meyer Wilson represent investors who have lost money in Ponzi schemes,
investment scams, and securities fraud in
stockbroker mediation, arbitration, and litigation nationwide.