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A court-appointed insolvency administrator is still working hard to recover as much as possible for investors caught up in a Ponzi scheme orchestrated by a local businessman.
In July last year, the U.S. Securities and Exchange Commission (SEC) filed charges against Naples resident Brent Seaman and several companies he ran under the name Accanito for fraudulently collecting around $35 million from at least 60 investors by issuing unregistered securities. He met many of the investors through a local church.
He and his wife Jana attended the nondenominational Grow Church in North Naples.
Since her appointment as bankruptcy trustee for the fraud case in October 2023, Melanie Damian has been working alongside Damian Valori Culmo in Miami to uncover the conspiracy, mobilize and secure assets, and recover as much money as possible for the benefit of the victims.
In recent months, it has found more money for investors, but compared to the losses, this is still not much.
The latest report from the bankruptcy trustee showed a fund balance of over $3.66 million in June, compared to about $3.17 million in March.
The fund will also be used to pay the bankruptcy trustee’s expenses while she continues to do her job. Her expenses totaled $4,260 in the second quarter from April 1 to June 30, with the majority of that spent on “cyber discovery.”
During the quarter, Damian stole more than $487,000 in cash. Much of that came from Grow Church, which had to forfeit $249,110 in profits. Additional money came from the defendants’ former lawyers and accountants and several others who profited from the scheme.
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More about the alleged scheme
According to the SEC, Brent Seaman told investors that he would only put their money into young technology and software companies and use it for profitable foreign exchange and commodity trades. He described the investments as “safe” and the returns as “guaranteed.”
He is accused of making risky trades with the funds and using them for a lavish lifestyle that included exotic cars, expensive jewelry, private charter flights and luxury vacations. He agreed to settle the SEC case without admitting or denying the fraud allegations.
In a Ponzi scheme, early investors are paid off with the money of new investors.
Some investors profited from others.
Although the SEC does not accuse his wife, Jana, of wrongdoing, they and two limited liability companies, Valo Holdings Group and Surge Capital Ventures, are named as “auxiliary defendants” in the case because they received funds from investors that they are now seeking to recoup.
More: The Naples man accused in a $35 million Ponzi scheme has been in trouble before. What we know
What was restored?
To date, the bankruptcy trustee has recovered more than $1.96 million from several business and trading accounts with direct ties to Brent – while simultaneously collecting more than $1.3 million in “disgorgement payments” from the defendants.
The bankruptcy trustee also recovered seven pieces of jewelry from Jana that she originally purchased for just over $328,409 with investor money through one of her husband’s companies. The most expensive piece: a platinum diamond ring with a 6.98-carat radiant diamond and 67 side diamonds – purchased for $153,500.
According to her last report, Damian was still marketing and negotiating the sale of the jewelry, in bulk and individually, with the exception of one Rolex watch. She sold the gold watch with a Jubilee bracelet for $15,650.
The bankruptcy trustee has taken over the defendants’ ownership interests in three limited liability companies: Surge Trader, Blue Diamond Home Solutions Dallas and Blue Diamond Home Solutions of Naples. She has demanded repayment of loans the defendants made to these companies and is also exploring the sale of the interests to recover more money for investors in the Accanito scheme.
Through her investigation, the bankruptcy trustee was able to identify 63 investors who had lost money in this attempted fraud. In total, they lost almost $27.3 million.
In solving the case, Damian was able to trace the transfer of at least $20.1 million in investor funds from four Accanito Equity LLCs to 11 foreign exchange trading accounts maintained by Surge LLC, an affiliate and defendant. However, less than $509,000 was recovered from those accounts.
By the time of the next report, Damian will have a claim process and distribution plan in place for investors. She still hopes to recover more money as she continues to investigate and demand payments from those involved in the fraud.
The names of the investors are not mentioned in the bankruptcy trustee’s reports for privacy reasons. According to the SEC, many of the investors were elderly people and retirees who were associated with Grow Church.
Complaints from investors
Two securities lawsuits have been filed in Collier Circuit Court by investors seeking compensation for their losses.
One case is inactive, awaiting the outcome of the bankruptcy trustee’s efforts. At Damian’s request, the court granted a “stay” to protect the assets for the benefit of all investors and to avoid involvement in litigation.
The other, more recent case, however, is still pending. The lawsuit names Brent and several of his affiliates as defendants, as well as Jana and her company, Valo. Ryan and Cristal Blasko, who now live in Kentucky, filed the suit in May.
According to their lawsuit, the couple lived on Florida’s east coast in Palm Beach when they invested in several Accanito stock companies. They estimate their total losses at more than $250,000, including a $20,000 loan to Surge LLC that they say was never repaid, either principal or interest.
The Blaskos demanded a jury trial. Their claims include breach of fiduciary duty, negligence, embezzlement, breach of contract and unjust enrichment.
The defendant has not yet responded to the lawsuit.
In the lawsuit, the Blaskos claim that Brent solicited their investments through promotional materials and one-on-one meetings, suggesting that his business success was “sent to him by a higher power.”
Although he boasted of his proven success in foreign exchange trading, Seaman was neither registered with the SEC nor did he have a license to sell securities.
Seaman promised his investors annual returns of between 18 and 48 percent. In November 2022, he stopped the monthly distributions.