Summary Judgment in Zada Ponzi Scheme

Defendants raised at least $27.5 million from at least 60 investors between January 2006 and August 2009 through the fraudulent offer and sale of unregistered securities in the form of promissory notes with interest rates ranging from seven to twelve percent per year, purportedly to support oil-related investments. Defendant Zada falsely claimed that he had contacts and exclusive access to certain oil investments in the Middle East, and had earned substantial returns from prior oil-related investments. In reality, Zada was conducting a Ponzi scheme, utilizing approximately $12.4 million of new investor funds to pay earlier investors, and misappropriating the rest for personal use.