Maryland Man Faces Ponzi Scheme Charges; Investors Lost Millions
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.
The 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.