The US Securities and Exchange Commission (SEC) has charged a financial podcaster and entrepreneur claiming to be the “Cash Flow King” with running an $11 million Ponzi scheme. The SEC alleges that the podcaster employed fraudulent tactics to solicit money from investors.
The SEC alleges that Anthony Sierra, who ran a finance podcast called the Cash Flow King Show, used his platform to promote his own investments, which he called “Jay Banks Deals.” In reality, the SEC says, the investments were not legitimate and the money was used to pay returns to earlier investors and for Sierra’s own personal expenses. Sierra also allegedly recruited listeners of his podcast to invest in a fraudulent online trading platform.
The SEC alleges that Sierra misappropriated over $11 million of investor funds, most of which went toward paying returns to earlier investors and for Sierra’s own personal expenses. The SEC also alleges that Sierra created a phony documents to conceal his activities, as well as false accounts to generate fake returns for investors.
The SEC is seeking financial penalties, disgorgement of ill-gotten gains, and a permanent bar from participating in any securities offerings.