SEC v. Bullard, et al. is a new complaint filed by the SEC in the District of Minnesota on August 27, 2021.  The complaint alleges Jason Dodd Bullard and his wife Angela Romero-Bullard (the “Bullards”), the owners of Bullard Enterprises LLC (collectively “Defendants”), defrauded around 200 investors of approximately $17.6 million as part of a Ponzi scheme where the Bullards falsely claimed investors funds would be used to trade foreign currencies. The complaint alleges Defendants violated Section 17(a) of the Securities Act and Section 10(b) and Rule 10-b-5 of the Securities Exchange Act.

According to the complaint, beginning in around 2007 through August 2021, Defendants raised approximately $17.6 million from about 200 investors by word of mouth.  Defendants claimed the investors’ funds would be invested in two investment funds to trade foreign currencies.  Investors were told the funds were “pay for performance,” meaning Defendants only earned a fee if the funds earned a profit and regularly provided account statements to investors falsely showing profitable investments.  However, the vast majority of investment funds were used to pay other investors, for personal use, and to fund four unrelated businesses in which the investors had no stake.  Defendants also used funds received from the Paycheck Protection Program to fund investor payments until they received new investor money.

The complaint requests a temporary restraining order, preliminary and permanent injunctions, an accounting of funds raised and used, disgorgement and prejudgment interest, civil penalties, an asset freeze as to each Defendant, and an order to prevent Defendants from destroying or concealing documents.