SEC v. Jose D. Rocha

Jose D. Rocha allegedly ran a Ponzi scheme in which he took over $1 million from 13 investors. Rocha allegedly promised investors he would invest their money in securities with returns of 12% per month. According to the complaint, Rocha used only a small percentage of the money to make highly leveraged, and highly unsuccessful, trades of stock and stock options. Rocha allegedly spent the balance of the funds to feed his gambling habit and embark on a luxury lifestyle. According to the complaint, Rocha also used money from later investments to pay out on earlier investments.

Summary generated from official Securities and Exchange Commission press release