A self-described “Social Capitalist” was running a Ponzi scheme that targeted socially-conscious investors in church congregations. The Social Capitalist lured investors with false promises and information into investing into two programs through City Capital Corporation, where he was the CEO. The false promises involved money going to charitable causes and economically disadvantaged businesses, but in reality the money went towards publishing the schemer's books, refining his public image, and his wife's singing career.
“[He] professed to be in the business of socially-conscious investing. Instead, he was in the business of promoting [himself],” said David Woodcock, Director of the SEC’s Fort Worth Regional Office. “He preyed upon investors’ faith and their desire to help others, convincing them that they could earn healthy returns while also helping their communities.”
SEC Charges Ponzi Schemer Targeting Church Congregations