Florida Trucking Execs Charged in $112M Ponzi Scheme

The Securities and Exchange Commission (SEC) charged former Royal Bengal Logistics executives Ricardi Celicourt and Brisly Guillaume with violations of the securities registration and broker-dealer registration provisions. Here is the information matters:

The key facts:

• $112 million raised fraudulently
• 1,500 investors affected
• Scheme ran from April 2021 to June 2023

The Scam

Royal Bengal Logistics promised big returns on trucking investments. But it was all a lie.

• Four investment programs offered (RBL raised around$109 million of the total $112 million raised from investors)
• Guaranteed returns on investments ranged from 12.5% to a staggering 325%
• Short-term investment programMinimum investment: $25,000
• Long-term owner financing programMinimum payout: $60,000
• Trailer sponsorship programMinimum investment: $50,000Purpose: Funds to be used to build trailers in India for shipment to the U.S.
• Equipment management programMinimum investment: $55,000Purpose: Funds to be used to purchase and operate a truck

The company targeted South Florida's Haitian-American community and investors from 17 states and several countries.

The Accused

Ricardi Celicourt and Brisly Guillaume, the former Royal Bengal execs, are in hot water.

• Charged with securities violations
• Never registered as brokers
• Received $1.3 million in bonuses

"[They] sold investments to public investors despite never being registered as brokers or dealers with the SEC," the SEC complaint states.

The Aftermath

Royal Bengal Logistics has suffered greatly due these fraudulent activities.

• Lost over $18 million between 2019-2023
• Needed $70 million from new investors to pay existing ones
• Bank accounts dwindled to $2.1 million by February 2023

What's Next

The SEC next moves are the following:

• Seeking permanent injunctions
• Civil money penalties
• The return of ill-gotten gains to the rightful owners

This follows a June 2023 action against Royal Bengal and its ex-president, Sanjay Singh. Singh faces criminal charges, with a trial set for September.

Source: Sourcing Journal