Texas Ponzi Schemer Slapped With $3.8M Penalty In SEC Suit

Law360, Houston (October 17, 2013, 8:14 PM ET) -- The operator of a $10 million Ponzi scheme involving bogus investments in U.S. Small Business Administration loans was hit with a steep, $3.8 million civil penalty by a Texas federal judge on Wednesday, in a suit brought by the U.S. Securities and Exchange Commission.

U.S. District Judge Gray H. Miller said that although a court-appointed receiver had recovered all but approximately $183,000 in losses sustained by victims of Evolution Capital Advisors LLC, firm principal Damian Omar Valdez’s fraud was so appalling that he should be socked...
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Case Information

Case Title

Securities And Exchange Commission v. Evolution Capital Advisors, LLC et al

Case Number

4:11-cv-02945

Court

Texas Southern

Nature of Suit

850(Securities/Commodities)

Judge

Judge Gray H. Miller

Date Filed

August 10, 2011

Sections

Government Agencies Mentioned