The U.S. Securities and Exchange Commission (SEC) had filed a complaint today against Charlottesville resident John Donnelly and several of his firms for allegedly conducting a multi-million dollar Ponzi scheme.
The SEC’s complaint contends that, since 1998, Donnelly has fraudulently dissipated at least $11.2 million from approximately 31 investors. According to the filed complaint, Donnelly claimed to generate returns of up to 22 percent, but instead redistributed investor’s principal to other investors rather than executing trades.
On February 9, he allegedly admittedly the scheme to one of his investors.
The firms in question are Tower Analysis, Inc., Nasco Tang Corp., and Nadia Capital Corp. To protect investors, the SEC has filed and obtained a court order to freeze Donnelly’s assets.