SEC Charges Florida Resident in $1.6 Million Ponzi Scheme Case

On October 30th, 2024, the Securities and Exchange Commission (SEC) announced that a Florida resident has been charged as part of a $1.6 million Ponzi scheme. The scheme in question was reportedly targeted at the Serbian-American community. Dusan Varga allegedly used his company Pannon Investment Advisors LLC to defraud investors. Within this article, our Miami Ponzi scheme lawyer for investors provides a more comprehensive overview of the case.

SEC: At Least 20 Investors Lost $1.6 Million in a Ponzi Scheme 

The SEC filed a civil securities fraud complaint against Pannon Investment Advisors LLC and its Chief Executive Officer (CEO) Dusan Varga in the United States District Court for the Southern District of Florida. The federal agency contends that Mr. Varga carried out a Ponzi scheme between May of 2020 and early 2024. According to the SEC, Pannon Investment Advisors LLC obtained funds from at least 20 different investors. The total amount was around $1.6 million. The affected investors were primarily Serbian-Americans from South Florida.

Mr. Varga allegedly lied about the use of funds, the fund’s profits, his qualifications, and the investment risks. Pannon Investment Advisors LLC was sold to actual and prospective investors as using a complex, proprietary system to trade covered stock options in a manner that would generate above-market returns while carrying very limited downside. However, the SEC believes that Pannon Investment Advisors and Mr. Varga made Ponzi-like payments to keep the scheme afloat. Funds were misappropriated and investors were deceived.

Note: Investors were promised a dividend of three percent to four percent on a monthly basis. That represents an annual return of nearly 50 percent. In reality, there were no legitimate gains.

 An Affinity-Based Ponzi Scheme 

It is notable that the alleged Pannon Investment Advisors LLC Ponzi scheme was specifically targeted at the Serbian-American community in South Florida. Unfortunately, this type of scheme is not especially uncommon. You may hear this referred to as an affinity-based Ponzi scheme. Broadly defined, it is a type of financial fraud that targets members of identifiable groups—such as religious groups, ethnic communities, the elderly, or professional groups. The perpetrators—who often are actual or pretend to be members of the targeted group—exploit the trust and common bonds within the group to promote the scheme. They typically promise high returns on investments with low risk. Money from new investors is used to pay returns to earlier investors. There is an illusion of a profitable investment returns. Sadly, it can lead to serious losses for the affected investors.

 Contact Our Miami Ponzi Scheme Lawyer for Immediate Help

At ​Carlson & Associates, P.A., our Miami Ponzi scheme attorneys are skilled, experienced, and committed to going the extra mile for investors. Did you suffer investment losses in a Ponzi scheme? Do not go it alone. Our firm is here as the resource that you can rely on. Contact us now for a fully confidential initial consultation. We represent investors throughout all of South Florida.

Source:

sec.gov/enforcement-litigation/litigation-releases/lr-26167