SEC Busts Alternative Certificates of Deposit Ponzi Scheme

Defendants sold $1.7 million worth of alternative CD’s to 16 investors who were primarily senior citizens and individuals who spoke limited English, falsely representing that they paid a guaranteed 6% annual return and were FDIC insured. In reality, the Aldridges used new investor money to pay the purported guaranteed returns to other investors, to pay their personal expenses, to attempt to run an undisclosed high-risk mortgage business, and to pay undisclosed commissions to Casmay. The Aldridges and Casmay were all criminally convicted, and the entity defendant went defunct.