Brothers Accused of $2.7M Ponzi Scam Involving Elderly Investors

The Securities and Exchange Commission has filed charges against brothers Daniel Rivera and Matthew Rivera with fraud. The two men are accused of running a $2.7 million Ponzi scam that targeted unsophisticated older investors.

According to the SEC, from ’08 to ’14, Daniel told investors that they could make money from Robbins Lane, which was a real estate venture in Pennsylvania. On occasion, he even purportedly recommended to some of them that they sell their retirement assets to invest in the venture.

In truth, said the Commission, Robbins Lane, which the Rivera brothers founded, lacked an investment portfolio and the ability to provide the senior investors any income. Yet Daniel set up a Robbins Lane website and produced a brochure touting the opportunity as one that gave older investors “guaranteed” income every month.

However, rather than invest the fund Daniel used the money to cover his own expense and his daughter’s college tuition. He diverted some of the money toward a janitorial business that he ran with Matthew. Hundreds of thousands of dollars in investor money went to pay other investors.

The two men are not denying or admitting to the SEC charges. Daniel must pay over $1.9M and a $160K penalty. Matthew must pay $20K and a $100K civil penalty. Rivera & Associates and Daniel Rivera Inc., which are controlled by Daniel, must pay $591K.

Unfortunately, time and again, older investors are targeted by fraudsters seeking to take advantage of their finances. For many retirees, they have no way to replenish income lost in a Ponzi scam or another type of securities fraud. We at Shepherd Smith Edwards and Kantas, LTD LLP are committed to helping elder investors and other investors to recoup their securities losses. Contact one of our elder financial fraud lawyers today.

SEC Charges Two Brothers with Running Ponzi Scheme Targeting Seniors, SEC, March 24, 2016