Today the SEC alleged a new Ponzi scheme. The interesting part of the story is that the alleged Ponzi operator, Kenneth Wayne McLeod, is now deceased. Hmmm, how are they going to handle this one?
The SEC has frozen the estate of Mr. McLeod, along with assets from his benefits consulting firm, Federal Employee Benefits Group, Inc as well as his Registered Investment Advisor (RIA) firm, F&S Asset Management Group, Inc.
Mr. McLeod targeted government and law enforcement employees. His tatic: “free” seminars, where he made his pitch. He was able to collect more than $34 million from victims. Similar to other Ponzi schemes, he promised high rates of return (8-13%) by investing in a “tax free bond” account, that was not real. He also told investors that their principal would be “locked up” for periods of up to eight years due to the supposedly long-term nature of the government bonds he was investing in. In addition, he also issued false statements with fake interest earnings, etc.
This is so sad and unfortunate that so many people entrusted their life savings, college funds, and inheritances to this fraudster. Always remember that there is no such thing as a “free” seminar. Know who you are hiring!