The SEC has obtained final judgments against eight defendants and one relief defendant in its case against them for their role in a $345 million Ponzi-like scheme.

On September 13, 2018, the Commission filed an emergency civil injunctive action in United States District Court for the District of Maryland against Kevin Merrill, Jay Ledford, and business entities controlled by them, charging them with operating a Ponzi-like scheme that raised more than $345 million from over 230 investors across the United States. The Commission later amended its complaint to add Mr. Merrill's wife, Amanda Merrill, and Mr. Ledford's wife, Lalaine Ledford, as relief defendants.

The United States Attorney's Office for the District of Maryland brought a parallel criminal action against Kevin Merrill, Jay Ledford, and Cameron Jezierski for their roles in the scheme. United States v. Merrill, et al., No. 18-cr-00465 (RDB). All three pled guilty. The Court sentenced Merrill to 264 months in prison and Ledford to 168 months in prison and ordered both to pay $189,166,116 in restitution. The Court sentenced Cameron Jezierski to 24 months in prison and ordered him to pay $45,093,384 in restitution.

The final judgments state that Jay Ledford, Global Credit Recovery, LLC, Delmarva Capital, LLC, Rhino Capital Holdings, LLC, Rhino Capital Group, LLC, DeVille Asset Management Ltd., and Riverwalk Financial Corporation are liable, on a joint-and-several basis, for $183,973,833 in disgorgement, plus $5,671,794 in prejudgment interest. The final judgment against Cameron Jezierski orders him to pay $105,000 in disgorgement and $2,913 in prejudgment interest. These judgments are deemed satisfied in light of the recoveries made by the Court appointed receiver and the restitution ordered against Kevin Merrill, Jay Ledford, and Cameron Jezierski in the criminal matter.

The judgment against Relief Defendant Lalaine Ledford provides for the equitable disgorgement of certain vehicles and luxury items which the SEC has alleged were obtained with the proceeds of Jay Ledford's fraud.

The ongoing litigation against defendant Kevin Merrill and Relief Defendant Amanda Merrill is being handled by Julia C. Green, John T. Crutchlow, and Gregory R. Bockin of the SEC's Philadelphia Regional Office. The investigation was conducted by Norman P. Ostrove and Dustin E. Ruta. Scott A. Thompson, Associate Regional Director, is supervising the action. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Maryland, the Baltimore field office of the Federal Bureau of Investigation, and the Federal Housing Finance Agency.