Horizon Private Equity III
Investor Losses Estimated to Exceed 25 Million
According to a US Attorney’s Office press release, John J. Woods has pleaded guilty to operating a Ponzi scheme, Horizon Private Equity, that defrauded more than 400 investors from 20 different states out of more than 25 million.
Woods, who is 58 and resides in Marietta, GA, “promised investors low-risk investments, profitable returns, and a diversified portfolio, all while secretly using money raised from new investors to primarily pay earlier investors,” said U.S. Attorney Ryan K. Buchanan. “Investors should respond with caution to financial offers that sound too good to be true and are cloaked in the promise of low risk and high rates of return.”
In 2021, the U.S. Securities and Exchange Commission shut down Horizon Private Equity, which promised investors returns of 6 to 7% with minimal risk. In classic Ponzi scheme form, money collected from new investors was paid to previous investors, giving the appearance of a profitable venture.
Ponzi scheme
A Ponzi scheme is a type of fraud which pays “profits” to earlier investors using funds raised from recent investors, which creates the impression that the business is an ongoing profitable venture. The scheme can maintain this illusion of a legitimate, ongoing profitable operation as long as victims can be lured in to provide the cash needed to pay “profits’ to earlier investors and so long as most of the investors do not demand full repayment of their investment.
The scheme is named for Charles Ponzi, who operated such a fraud in the 1920’s.
Charles Ponzi
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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