The Securities and Exchange Commission has charged Michael Neu, a “Cash Flow King” podcaster and purported financial guru, with orchestrating a $11 million Ponzi scheme that left more than 275 investors around the country out of pocket. The SEC’s complaint, filed in the U.S. District Court for the Eastern District of Louisiana, alleges that Neu and his affiliated companies swindled investors out of their money by promising high returns on fraudulent investments. According to the complaint, Neu and his companies promised investors a 7 to 15 percent compound return on the investment and the ability to pull out their initial money at any time. However, the SEC alleges that Neu and his companies were instead using investor funds to pay for personal expenses, such as travel and rent. In addition, the SEC alleges that Neu and his companies were pocketing some of the money for themselves and only giving investors a portion of what they initially invested. The SEC is seeking disgorgement of ill-gotten gains, penalties, and injunctive relief against Neu.
SEC charges ‘Cash Flow King’ podcaster in $11 million Ponzi scheme
