The Securities and Exchange Commission (SEC) has charged a podcaster known as the “Cash Flow King” for running an $11 million Ponzi scheme. According to the SEC’s complaint, Carlos Andres Ramirez (Ramirez), through his podcast, blogs, YouTube videos, and seminars, promised his investors high returns with no risk. He allegedly used these means to solicit funds from over 120 investors, which Ramirez falsely told investors would be invested in private investments. Instead, as alleged by the SEC, Ramirez misappropriated the investor funds and used them for his own personal expenses and to pay purported and fictitious returns to earlier investors.
The complaint charges Ramirez with violations of federal securities laws, including the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The SEC is seeking permanent injunctions, disgorgement plus prejudgment interest, and civil penalties against Ramirez. The SEC is also seeking a penny judgment against Ramirez.
The SEC’s ongoing investigation is being coordinated with law enforcement efforts from other federal and state agencies. The public is advised to remain vigilant when considering an investment opportunity. In particular, individuals should be suspicious of investment promises that promise a high return without risk. They should be especially wary if such investments are offered through podcasts, blogs, YouTube videos, or other online media.
