Raleigh man accused of running Ponzi scheme
Posted August 19, 2012 6:12 p.m. EDT
Updated August 20, 2012 4:36 p.m. EDT
Raleigh, N.C. — A 56-year-old Raleigh man was charged Friday with securities fraud in connection with a Ponzi scheme that crossed state lines, police said.
Michael Anthony Jenkins, of 2512 Gregmoor Ct., is charged with three felony counts of securities fraud after police say he took at least $100,000 from several investors between March and October 2011.
According to police, Jenkins told investors he would be trading E Mini Futures through his company, Harbor Light Asset Management LLC. Instead, Jenkins used the money for personal use and to repay earlier investors, police said.
The North Carolina Secretary of State Division of Securities said Jenkins was never registered with the state to sell securities or with the National Futures Association to act as a commodities trader.
Greg Frank, one man who gave Jenkins money, said he started noticing issues shortly after investing in September.
"From the beginning, we started having issues," he said. "We were not getting a statement."
Frank said the occasional statements he did receive contained good news, but once it was time to collect his money in January, it was gone.
"We only had $500, so it wasn't a huge thing," Frank said. "Our friends invested thousands of dollars. They had been hit hard with the economy and pretty much invested what's left of their savings."
Jenkins was in the Wake County jail Sunday evening under a $500,000 bond and had his first court appearance Monday.
Secretary of State Elaine F. Marshall said the investigation is continuing and anyone who has made investments with Harbor Light Asset Management LLC should contact the securities division at 1-800-688-4507 or 919-733-3924.
She also warned residents to double-check before investing their money with anyone.
“Calling our securities division would have revealed that Mr. Jenkins was not registered to sell securities, and that should send up a red flag for anyone considering an investment,” Marshall said in a statement. “We strongly urge everyone considering an investment to call...to make sure that the person pitching the investment, and the investment itself, are properly registered with us before they sign over any of their money.”