SEC halts alleged Ponzi scheme

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U.S. securities regulators obtained an emergency court order to stop an alleged Ponzi scheme that collected more than $23 mln from thousands of investors in Florida's Haitian-American community, the Securities and Exchange Commission said.
The SEC alleged that Creative Capital and its principal, George Theodule, launched a scheme as early as November 2007 urging investors to form investment clubs to funnel funds to Theodule and Creative Capital.
The SEC alleged Theodule has lost at least $18 mln trading stocks and options over the last year and that Creative Capital repaid early investors with money from later investors. Theodule combined investor funds with his personal funds and misappropriated at least $3.8 mln for himself and his family, the SEC alleged.