Does the SEC claim that Millennium Bank operated as a Ponzi scheme?
Yes. On March 25, 2009, the U.S. Securities and Exchange Commission filed an action in the United States District Court for the Northern District of Texas, alleging a Ponzi scheme involving the sale of certificates of deposit (“CDs”) by Millennium Bank of St. Vincent and the Grenadines, and others. United States District Judge Reed O’Connor granted a temporary restraining order, asset freeze, and other emergency relief against Defendants, including the appointment of a receiver to take control of their assets. The SEC’s complaint alleges that from July 2004 to the present, Millennium Bank raised at least $68 million from over 375 investors. According to the Commission’s complaint, Millennium Bank and others solicited the funds for purported investment in self-styled “CDs” which promised returns up to 321% higher than the national overnight average rates offered on traditional bank-issued CDs. Furthermore, according to the SEC’s allegations, a majority of the $68 million raised from inv
