Securities and Exchange Act

On July 2, 2015, the SEC froze a fraudulent venture headed by DFRF Enterprises, its leader, and six promoters. The SEC alleges that DFRF Enterprises operated a Ponzi scheme by promoting and selling membership interests in over 50 Brazilian and African gold mines.  The company recruited investors by promising large profits on fully insured funds used to mine gold.  The company further claimed that 25% of all profits would be used for African charity work. DFRF Enterprises marketed the Ponzi scheme by asserting that the company was registered with the SEC and that  the gold mine stock would be publicly traded. However, instead of using investor funds in Brazilian and African gold mines, the company, its leader, and promotors sold membership interests to investors through private meetings held in homes, businesses, and hotel rooms.  Newly recruited members’ investments were paid to long-term members. In 2014, the company illegally raised over $15 million from at least 1,400 investors, most of which lived in [...]