The Securities and Exchange Commission (SEC) has charged Florida-based Titanium Capital LLC and its founder Henry Abdo with operating a Ponzi scheme that raised at least $5.3 million from more than 160 private investors in the United States and abroad. The SEC also charged Titanium spokeswoman Carol Ann Barsh for her role in soliciting investors.
According to the Securities and Exchange Commission’s complaint, since 2014, Abdo and Titanium falsely claimed that Titanium invested investment funds in a “Multi-Currency Investment Fund” backed by proprietary foreign exchange and that the investment never had a monthly loss and had high returns for investors. including up to 102 percent compound interest on a five-year investment. In recruiting investors, Titanium and Abdo claimed that Titanium was registered and closely scrutinized by the SEC.
However, according to the SEC complaint, neither Titanium nor the offering or sale of its securities have been registered with the SEC, and there is no evidence of proprietary currency. According to the complaint, Abdo and Titanium used nearly all of the investors’ funds to make Ponzi payments to previous investors, pay related parties and divert funds for Abdo’s personal use on items such as jewelry and casino visits.
The SEC also alleges that Barsh promoted and sold Titanium’s securities to investors without proper registration or under an exemption from registration.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, accuses Titanium and Abdo of violating the anti-fraud provisions and, along with Barsh, the registration provisions of the federal securities laws . The complaint seeks injunctive relief, relief and civil penalties against Titanium, Abdo and Barsh and a permanent injunction against participating in future securities offerings and an officer and director injunction against Abdo.
The complaint also names as defendants in relief, and seeks relief from, Abdo’s relative, Elias Halim Abdo, and Abdo’s wife, Ganna Migulina.