U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25912 / December 14, 2023
Securities and Exchange Commission v. Titanium Capital LLC, et al., Civil Action No. 23-cv-81558 (S.D. Fla. filed December 14, 2023)
SEC Charges Titanium Capital and Founder Henry Abdo with Operating Ponzi Scheme
The Securities and Exchange Commission today charged Florida-based Titanium Capital LLC and its founder Henry Abdo with operating a Ponzi scheme that raised at least $5.3 million from more than 160 retail investors in the United States and abroad. The SEC also charged Titanium representative Carol Ann Barsh for her role soliciting investors.
According to the SEC’s complaint, since 2014, Abdo and Titanium falsely claimed that Titanium invested investor funds in a “Multi Currency Investment Fund” backed by a proprietary currency exchange and that the investment had never had a monthly loss and generated large returns for investors, including up to 102 percent compounded interest for a five-year investment. In recruiting investors, Titanium and Abdo allegedly claimed that Titanium was registered with and closely examined by the SEC. However, according to the SEC’s complaint, neither Titanium nor the offer or sale of its securities is registered with the SEC, and there is no evidence that a proprietary currency exchange exists. According to the complaint, Abdo and Titanium used virtually all investor funds to make Ponzi-style payments to earlier investors, pay related parties, and divert funds for Abdo’s personal use on items such as jewelry and casino visits. The SEC also alleges that Barsh promoted and sold Titanium’s securities to investors without proper registration or pursuant to an exemption from registration.
The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges Titanium and Abdo with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and, along with Barsh, the registration provisions of Section 5 of the Securities Act. The complaint seeks injunctive relief, disgorgement, and civil penalties against Titanium, Abdo, and Barsh and a permanent bar against participating in future securities offerings and an officer and director bar against Abdo. The complaint also names as relief defendants, and seeks disgorgement from, Abdo’s relative, Elias Halim Abdo, and Abdo’s wife, Ganna Migulina.
In a parallel action, the U.S. Attorney’s Office for the Southern District of Florida yesterday announced criminal charges against Abdo.
The SEC’s ongoing investigation is being conducted by Adrienne L. Adkins, Brook Jackling DeVeas, and Deborah Russell and supervised by Carolyn M. Welshhans and Amy Friedman. The litigation is being conducted by Daniel Maher and Rebecca Dunnan and supervised by James Carlson. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Florida, the FBI, and the Florida Office of Financial Regulation.
If you are an investor in Titanium, or if you have information related to this investigation and you wish to contact the SEC staff, please reach out to ENF-TitaniumVictims@sec.gov. The SEC encourages investors to check the backgrounds of anyone selling or offering them an investment using the free and simple search tool on Investor.gov. Investors also can learn more about the risks of investing in unregistered offerings by reading an alert issued by the SEC’s Office of Investor Education and Advocacy.