SEC Hunts Prosperity Investments for Ponzi Scheme

The Securities and Exchange Commission (SEC) has taken legal action against Prosper E. Beyond Moore, a resident of Loganville, Georgia, and his controlled entity, Prosperity Investments & Solutions, LLC. The charges involve the defrauding of numerous investors.

As detailed in the SEC's complaint, spanning from October 2021 to September 2022, Moore and Prosperity engaged in unregistered securities offerings, amassing over $1.4 million from more than 60 individual investors. Notably, many of these investors were either affiliated with Moore's church or became aware of his offerings through shared religious connections. The misleading representation portrayed Prosperity as an exclusive investment and lending platform, led by a seasoned team capable of delivering profits of up to 50% monthly.

The complaint asserts that despite Moore lacking prior experience in the financial industry, he singularly made investment decisions, and Prosperity, contrary to its claims, did not invest the majority of the funds it received. Instead, the SEC contends that Moore operated Prosperity as a Ponzi scheme, utilizing funds from new investors to make payments to existing investors and cover personal expenses. Meanwhile, fabricated account statements were used to create the illusion of profits.

This legal action, filed in the United States District Court for the Northern District of Georgia, charges Moore and Prosperity with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

In response to the SEC's complaint, Moore and Prosperity, without admitting or denying the allegations, consented to a permanent injunction order. This order prohibits them from violating the charged provisions, with the court later determining disgorgement, prejudgment interest, and civil money penalties.

Furthermore, Moore agreed to a permanent officer-and-director bar under Section 20(e) of the Securities Act and Section 21(d)(2) of the Exchange Act. Additionally, he consented to an injunction permanently barring his participation in the issuance, purchase, offer, or sale of securities, except within his personal account.