SEC Alleges $16 Million Ponzi Scheme Included Speculative Day-Trading Losses

The U.S. Securities and Exchange Commission has charged Ernest Ossei Boateng and two New Jersey-based companies he controls, Intercontinental Wealth Network LLC and I Wealth Network LP, over an alleged $16 million Ponzi scheme. The SEC alleges that the defendants raised money from more than 200 inexperienced investors from January 2020 through at least March 2026.

According to the SEC’s complaint, investors were told their money would generate guaranteed fixed returns through a low-risk strategy. The agency alleges that more than $5.8 million was misappropriated for personal expenses and about $6.6 million was used for Ponzi-like payments to earlier investors. It further alleges that, where money was invested, it was not placed in the promised low-risk investments.

The SEC says investor funds were instead used for high-risk speculative day trading, resulting in more than $750,000 in trading losses. The complaint seeks injunctions, disgorgement with prejudgment interest, civil penalties and conduct-based injunctions. The allegations have not been proven in court.

Why it matters

The case is a clear reminder that guaranteed returns and claims of a no-risk trading strategy are red flags. Day trading carries substantial risk, and it cannot credibly provide certainty of return. Traders considering managed accounts or investment pools should verify registration, understand custody arrangements and independently review performance claims.

What to watch next

The action was filed in the U.S. District Court for the Eastern District of New York. Watch for court filings, any response from the defendants and further SEC updates on the enforcement case.