The Securities and Exchange Commission accused a Las Vegas lawyer and six other men of violating federal securities law for their involvement in an alleged Ponzi scheme that raised around $450 million from investors, the Wall Street Journal reported. Authorities said the alleged scheme unraveled last month when attorney Matthew Beasley confessed to running a Ponzi scheme after he was shot by federal agents who had come to his house March 3. In a Ponzi scheme, early investors are paid with funds raised from later investors while the money raised is generally not invested. Mr. Beasley and Jeffrey Judd, president of J&J Consulting Services Inc. and two similarly named entities involved in the alleged scheme, were identified as defendants in an SEC suit, along with five men who worked to promote the companies and attract investors in return for commissions. A lawyer for Mr. Judd in civil matters said he was a victim of Mr. Beasley’s misrepresentations. A lawyer for Mr. Beasley didn’t immediately respond to requests for comment. J&J raised funds from investors, saying the firm was providing advances to people who had settled personal-injury lawsuits. Promoters for the firm said the investments provided high returns with no risk.
