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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23770 / March 6, 2017

Securities and Exchange Commission v. Nathanial D. Ponn, No. 16-civ-10624 (D. Mass. filed Mar. 31, 2016)

United States v. Nathanial D. Ponn, No. 1:16-cr-10245 (D. Mass. filed Mar. 31, 2016)

Massachusetts Resident Sentenced to 15 Months Imprisonment for Orchestrating a Scheme to Defraud Numerous Broker-Dealers

On March 1, 2017, Nathanial D. Ponn, a defendant in an ongoing SEC litigation, was sentenced to 15 months imprisonment for orchestrating a three-year scheme that defrauded numerous brokerage firms. In addition, the Court ordered Ponn to pay over $20,000 in restitution to three brokerage firms for losses caused by his fraudulent conduct.

The SEC previously charged Massachusetts resident Ponn with conduct arising from the same facts underlying the criminal charges. According to the SEC's complaint, filed on March 31, 2016 in federal court in Massachusetts, beginning as early as 2007, but escalating in 2014 and continuing into at least April 2015, Ponn defrauded numerous brokerage firms through bogus bank transfers to newly opened brokerage accounts that created the false appearance the brokerage accounts would have cash available upon the settlement of Ponn's purchases of stocks and mutual fund shares. Ponn used temporary credits from the bogus transfers to purchase stock and mutual fund shares, which he repeatedly attempted to cash out or transfer to other financial institutions before the brokerages discovered that Ponn did not have actual money to fund the bank transfers.

On December 7, 2016, Ponn pled guilty to three counts of wire fraud in the parallel criminal action.

The SEC's litigation against Ponn continues. The SEC's complaint seeks a permanent injunction plus disgorgement, prejudgment interest, and penalties. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Massachusetts and the Federal Bureau of Investigation.

 

https://www.sec.gov/litigation/litreleases/2017/lr23770.htm


Modified: 03/06/2017