U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23240 / April 13, 2015
Securities and Exchange Commission v. James A. Evans, Jr., d/b/a Cashflowbot.com, d/b/a DollarMonster, Civil Action No. 1:15-cv-01118-RWS (Northern District of Georgia)
SEC Charges Georgia Resident with Engaging in a Ponzi Scheme
The Securities and Exchange Commission today filed charges against the perpetrator of a Ponzi scheme that raised money from more than 3,000 investors between January 2012 and April 2014.
According to the SEC's complaint filed in federal court in the Northern District of Georgia, James A. Evans, Jr., who lives in Villa Rica, Georgia, operating a website at the domain name "Cashflowbot.com," and using the business name "DollarMonster", falsely promoted DollarMonster as a "private fund" where investors could make "big profits." Among other things, Evans misrepresented to investors that DollarMonster: (a) paid out investment returns that exceeded the amount of money investors had contributed to the fund; (b) was a "financial advisor" with more than 120 management teams and $38 million in assets under management; (c) managed a hedge fund that purchased stocks on behalf of investors in the fund; (d) was a "private Holding Company" that invested in assets such as gold, silver, real estate, stocks and bonds, and (e) had used investor funds to profitably invest in stocks with a market value of $3.2 million.
The complaint alleges that Evans raised approximately $1.15 million from investors. He redistributed approximately $1.06 million to investors as purported investment returns, and withdrew approximately $30,405 for his own personal use. Ultimately, Evans' scheme collapsed.
The SEC's complaint alleges that Evans violated the registration and antifraud provisions of the federal securities laws: Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 206(4) of the Investment Advisers Act of 1934. The complaint seeks a permanent injunction, disgorgement with prejudgment interest and civil monetary penalties pursuant to Sections 21(d)(3) of the Exchange Act and Section 209(e) of the Advisers Act.