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SEC Charges Ponzi Scheme Targeting U.S. Military Service Members


Washington D.C., Sept. 21, 2020 —

The Securities and Exchange Commission today announced settled charges against a Colorado man for defrauding investors, including cadets at the U.S. Air Force Academy.

The SEC’s complaint alleges that over a two-year period, Milton J. Dosal, Jr. raised nearly $100,000 from approximately 41 investors under the guise that he would day-trade stocks on their behalf. According to the complaint, Dosal, a car enthusiast, met a number of investors through car club events, including an Air Force Academy cadet who Dosal then used to gain access to other cadets Dosal convinced to invest. The complaint alleges that Dosal falsely held himself out as a securities professional and misled investors about his trading activity and their investment returns. The complaint further alleges that Dosal’s empty promises included telling investors that they could, with little risk, expect weekly returns of up to ten percent. Dosal also allegedly used fake stockbroker agreements and false account balances for some investors. The complaint alleges that Dosal used investor funds for personal expenses and diverted new investor funds to pay back prior investors, in a Ponzi-scheme fashion.

“As alleged in our complaint, Dosal enticed military service members and others to invest with false claims that he was a highly successful day-trader,” said Kurt Gottschall, Regional Director for the SEC’s Denver Regional Office. “The SEC will continue to vigilantly pursue fraudsters who prey upon those who serve our nation.”

Without admitting or denying the allegations in the SEC’s complaint, Dosal consented to the entry of a final judgment permanently enjoining him from violating the antifraud and broker-dealer registration provisions of the federal securities laws. Dosal further agreed to return $51,633 of allegedly ill-gotten gains plus prejudgment interest of $3,503, and to pay a $51,633 civil penalty.

The SEC is dedicated to fighting fraud and educating retail investors, including through its Military Service Members’ Initiative. The SEC’s Office of Investor Education and Advocacy has published a guide regarding saving and investing for military personnel.  Additional information for services members and their families can be found on

The SEC’s investigation was conducted by J. Lee Robinson and supervised by Ian S. Karpel and Jason J. Burt of the SEC's Denver Regional Office.


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