SEC Charges Pennsylvania Insurance Agent with Running Ponzi Scheme
The Securities and Exchange Commission has charged a Bellefonte, Pennsylvania insurance agent with engaging in a Ponzi scheme that targeted retail investors who lacked significant investment experience.
The Securities and Exchange Commission has charged a Bellefonte, Pennsylvania insurance agent with engaging in a Ponzi scheme that targeted retail investors who lacked significant investment experience.
According to the SEC’s complaint, from at least 2010 through 2017, James Hocker began his relationship with a number of investors by selling them insurance. He later encouraged them to invest with him by falsely promising guaranteed returns of between 10 percent and 30 percent from investments he would make on their behalf in the S&P 500 and other unspecified investment vehicles.
Some investors allegedly withdrew money from their life insurance policies or retirement accounts to fund their investments. The SEC claims that Hocker did not invest any of the investors’ funds, but instead, pocketed the money and used it for his personal living expenses such as credit card bills and to make payments to other investors.
Over the last five years, Hocker raised approximately $1.27 million from about 25 investors. The investors were largely elderly retirees or individuals nearing retirement, without significant investment experience. The SEC claims that some investors were widows who relied on Hocker to manage their money following the death of their husbands.
The SEC’s complaint was filed in the U.S. District Court for the Middle District of Pennsylvania and seeks an injunction, disgorgement and penalties.
