The authorities allege that Ricardo Bonilla Rojas, through his unregistered firm Shadai Yire, targeted groups such as evangelical Christian gatherings and factory workers, aiming to hit upon novice investors. This was done primarily in Puerto Rico but also in Florida, New York and North Carolina. He collected “at least” $7 million from up to 200 investors.

He assured investors money was “100 per cent guaranteed,” the SEC says, promising returns of up to 50 per cent derived from commodity investments. However, instead of investing the money he allegedly used it to repay earlier investors while taking a $700,000 cut.

Alongside the civil charges, the US Attorney’s office for the District of Puerto Rico has announced criminal charges against Rojas.

The scheme was ongoing from August 2005 through to February 2009. As part of it, Rojas hired sales agents and paid them commission based on the investor funds they raised. Investors were targeted via phone, in person, and through presentations to groups. Phony account statements were created and sent to investors to hide the misuse of funds and show that investments were growing, the SEC alleges.

The SEC’s complaint seeks disgorgement of ill-gotten gains, financial penalties, and injunctive relief against Rojas and Shadai Yire to enjoin them from future violations of the federal securities laws.