SEC obtains final judgments in case against $345M Ponzi-like scheme
The Securities and Exchange Commission (SEC) has obtained final judgments against eight defendants and one relief defendant in its case against them for their role in a $345 million Ponzi-like scheme.
The case, which was launched in September 2018, targets Kevin Merrill, Jay Ledford, and business entities controlled by them. The defendants were charged with operating a Ponzi-like scheme that raised more than $345 million from over 230 investors across the United States. The Commission later amended its complaint to add Mr. Merrill’s wife, Amanda Merrill, and Mr. Ledford’s wife, Lalaine Ledford, as relief defendants.
The United States Attorney’s Office for the District of Maryland brought a parallel criminal action against Kevin Merrill, Jay Ledford, and Cameron Jezierski for their roles in the scheme. All three pleaded guilty. The Court sentenced Merrill to 264 months in prison and Ledford to 168 months in prison and ordered both to pay $189,166,116 in restitution. The Court sentenced Cameron Jezierski to 24 months in prison and ordered him to pay $45,093,384 in restitution.
The final judgments state that Jay Ledford, Global Credit Recovery, LLC, Delmarva Capital, LLC, Rhino Capital Holdings, LLC, Rhino Capital Group, LLC, DeVille Asset Management Ltd., and Riverwalk Financial Corporation are liable, on a joint-and-several basis, for $183,973,833 in disgorgement, plus $5,671,794 in prejudgment interest. The final judgment against Cameron Jezierski orders him to pay $105,000 in disgorgement and $2,913 in prejudgment interest.
These judgments are deemed satisfied in light of the recoveries made by the Court appointed receiver and the restitution ordered against Kevin Merrill, Jay Ledford, and Cameron Jezierski in the criminal matter.
The judgment against Relief Defendant Lalaine Ledford provides for the equitable disgorgement of certain vehicles and luxury items which the SEC has alleged were obtained with the proceeds of Jay Ledford’s fraud.