SEC Charges Ernest Ossei Boateng in Alleged $16 Million Ponzi Scheme
SEC alleges Ernest Ossei Boateng and two New Jersey firms raised $16 million from over 200 investors in a Ponzi scheme from January 2020 to at least March 2026.
Summary
The SEC charged Ernest Ossei Boateng and his New Jersey companies, Intercontinental Wealth Network LLC and I Wealth Network LP, with allegedly raising about $16 million from more than 200 inexperienced investors in a Ponzi scheme operating from at least January 2020 through at least March 2026. Boateng allegedly sold interests in a purported low-risk fund offering guaranteed fixed returns, primarily targeting Christians of Ghanaian heritage in New York and New Jersey. Investors included retirees, taxi drivers, home health care providers, students, an ailing widow with young children, at least two churches, and one prayer group. Some were falsely told their money was protected by so-called financial or investment insurance.
The complaint alleges Boateng diverted more than $5.8 million to personal expenses, including buying, renovating, and furnishing his home, and used about $6.6 million for Ponzi-like payments to earlier investors. Limited funds were placed in high-risk speculative day trading rather than promised low-risk investments, producing more than $750,000 in losses. Filed in the U.S. District Court for the Eastern District of New York, the complaint charges all defendants under the Securities Act of 1933 and Exchange Act of 1934, and charges Boateng and Intercontinental under the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct-based injunctions against Boateng and Intercontinental.
Positives
- The SEC filed a federal complaint naming Boateng, Intercontinental Wealth Network LLC, and I Wealth Network LP as defendants.
- The SEC seeks disgorgement of alleged ill-gotten gains with prejudgment interest, potentially returning recovered funds through later proceedings.
- Permanent injunctions and civil penalties are sought against all defendants, with additional conduct-based injunctions requested against Boateng and Intercontinental.
- The complaint quantifies approximately $12.4 million allegedly diverted to personal spending and earlier-investor payments.
Risks & concerns
- More than 200 investors allegedly supplied approximately $16 million during the scheme’s operation from January 2020 through March 2026.
- More than $5.8 million was allegedly misappropriated for Boateng’s personal expenses, including purchasing, renovating, and furnishing his home.
- Approximately $6.6 million allegedly funded Ponzi-like payments to earlier investors rather than the promised investment strategy.
- High-risk speculative day trading allegedly generated more than $750,000 in losses despite promises of low-risk, fixed-return investments.
- The alleged victims included inexperienced investors, retirees, students, an ailing widow, churches, and a prayer group.
- Guaranteed returns and purported financial or investment insurance were allegedly used to portray the investments as safe and without risk.