George Santos raised 6 figures for alleged Ponzi scheme company: report
The SEC says Harbor City Capital operated as 'a classic Ponzi scheme'
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Rep. George Santos, R-N.Y., raised at least six figures for a Florida-based company the U.S. Securities and Exchange Commission (SEC) says operated as a Ponzi scheme, the Wall St. Journal reported Sunday.
The company, Harbor City Capital, reportedly hired Santos in 2020 to recruit investors, and he secured at least one investment in the six-figure range. The SEC sued the company in 2021, alleging that Harbor City and its CEO, Jonathan Maroney, operated the company as "a classic Ponzi scheme," according to court filings.
"This an emergency action to stop an ongoing, fraudulent Ponzi scheme victimizing hundreds of investors across the United States," the SEC wrote in its lawsuit, alleging Maroney had misused virtually all of the $17.1 million he had secured from investors.
" Maroney used investor money to enrich himself and his family, and to perpetuate the Ponzi scheme by making payments of fictitious returns to existing investors using other investor funds," the suit continues. "Specifically, of the $17.1 million raised from Harbor City’s investors, Maroney misappropriated more than $4.88 million for his own personal use."
U.S. Rep.-elect Matt Gaetz (R-FL) (L) talks to Rep.-elect George Santos (R-NY) in the House Chamber during the second day of elections for Speaker of the House at the U.S. Capitol Building on January 04, 2023 in Washington, DC.
WASHINGTON, DC - JANUARY 12: Rep. George Santos (R-NY) leaves the U.S. Capitol on January 12, 2023 in Washington, DC. (Win McNamee/Getty Images)
Maroney's outfit recruited Santos to enlist more investors in 2020, and he succeeded in securing at least one major investor, according to WSJ. The investor soon complained about not receiving the returns Santos had initially promised, however, and Santos reportedly told him he had personally raised $100 million for the company.
The investigation into Maroney's company is ongoing no criminal charges have been filed. Santos did not immediately respond to a request for comment from Fox News Digital.
Santos is facing burgeoning calls for his resignation following revelations that he lied about swaths of his work and education history during his congressional campaign.
The Nassau County GOP, which lies in his congressional district, rebuked Santos on Thursday. It was the first major Republican group to call for his resignation, but Santos refused to budge.
"George Santos campaign last year was a campaign of deceit, lies, and fabrication," Nassau County GOP Chairman Joe Cairo said in a statement. "He has no place on the Nassau County Republican committee, nor should he serve public service, nor as an elected official. He's not welcome here at GOP HQ."
WASHINGTON, DC - JANUARY 05: U.S. Rep.-elect Marjorie Taylor Greene (R-GA) (L) talks to Rep.-elect George Santos (R-NY) in the House Chamber during the third day of elections for Speaker of the House at the U.S. Capitol Building on January 05, 2023 i
During his congressional campaign, Santos falsely claimed he graduated from college with degrees in finance and worked for Goldman Sachs and Citibank. Nassau County District Attorney Anne Donnelly opened an investigation into Santos in late December.
"The numerous fabrications and inconsistencies associated with Congressman-elect Santos are nothing short of stunning," Donnelly said in a statement. "The residents of Nassau County and other parts of the third district must have an honest and accountable representative in Congress. No one is above the law and if a crime was committed in this county, we will prosecute it."
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Santos is also facing a criminal investigation from Brazil, which reopened a nearly decade-old case of fraud against him. The case relates to a stolen checkbook.