Maryland Attorney General Anthony G. Brown announced over $17 million in fines and a permanent business ban against Prosperity Partners, Inc., Prosperity Medical, and three individuals for operating a Ponzi scheme that defrauded over 585 investors of nearly $29 million in Maryland and beyond.
Per the news release, “Attorney General Anthony G. Brown’s Securities Division announced the issuance of a Consent Order and a Final Judgment and Consent Order for Permanent Injunction by the Prince George’s County Circuit Court (collectively, the “Orders”) involving Mathias Bama, Valentine Bama, and Hilaire Leunkam (the “Individual Respondents”). The Orders, based on violations of the registration and antifraud provisions of the Maryland Securities Act, bar the Individual Respondents from engaging in securities and investment advisory business in Maryland and impose fines totaling $17,200,540.
The investigation revealed that the Individual Respondents, through Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC (collectively “Prosperity”), offered and sold over $28,909,000 in securities to more than 585 investors in Maryland and across the country. Prosperity promised investors a 6% monthly return for 12 months, equating to an annual return of 72%. However, the investigation found that Prosperity failed to invest in anything capable of sustaining such returns and appeared to operate as a Ponzi scheme, using funds from new investors to pay earlier investors.
“When Marylanders give their hard-earned money to companies, they trust that it will be protected and used wisely. Investments are made with the hope of a better future, and companies that put hardworking families’ futures at risk will be held accountable,” said Attorney General Brown. “We will continue to protect Maryland investors by holding fraudsters accountable.”
The Consent Order includes “Findings of Fact” derived from a Securities Division investigation launched after investors filed complaints when Prosperity stopped making interest payments on its promissory notes. In March 2023, the Securities Division issued a Summary Cease and Desist Order to halt the scheme immediately.
Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC have entered Chapter 7 Bankruptcy, with independent trustees appointed to manage Prosperity’s assets for the benefit of creditors, including investors. Prosperity has also entered into a Consent Order with the Securities Division, and the Prince George’s County Circuit Court issued a Final Order permanently barring Prosperity from conducting securities and investment advisory business in Maryland.
Attorney General Brown expressed gratitude to Securities Commissioner Melanie Lubin, Assistant Securities Commissioner Kelvin M. Blake, Assistant Attorney General Katharine M. Weiskittel, and Securities Investigator Joshua Schafer for their work on the case.
The relevant orders can be accessed here:
https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20230026_Final_ Judgment_CO_Permanent_Injunction_111424.pdf https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20230026_Conse ntOrder_Individuals_final_Prosperity_111424.pdf • https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20240026_SETT LEMENTAGREEMENT_111424.pdf • https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20230026_Prospe rity_Medical_CO_11142024.pdf
If you have questions or concerns about your investments or financial professional, please contact the Maryland Securities Division at 410-576-6360 or [email protected].”