Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases

Entries in treasury strip (1)


Hip-Hop Promoter Accused of $4 Million Ponzi Scheme

Federal authorities arrested a former hip-hop mogul and accused him of operating a $4 million Ponzi scheme that purported to invest in derivatives of United States Treasury bonds.  Tyrone Gilliams Jr., 44, was arrested last week on federal wire fraud charges, which carry a maximum prison sentence of twenty years and up to a $250,000 fine.  If convicted, he may also be ordered to pay restitution to victims.

Gilliams, a former hip-hop promoter, is now an internet preacher, and maintains a page at StreamingFaith, a provider of internet broadcast services to faith-based corporations.  According to a bio on the site, Gilliams formerly worked with "music mogul Sean Puffy Combs creating Bad Boy Sports.  Tyrone was eventually called to collaborate with the ultimate mogul our Lord and Savior Jesus Christ."

According to a recently unsealed criminal complaint, Gilliams operated TL Gilliams, LLC, and held himself out as a successful investor in United States Treasury Strips. Treasury Strips are derivatives of Treasury bonds, and operate by separating each periodic interest payment and corresponding future return of principal into individual securities.  During the spring of 2010, an individual investor made a $4 million investment with Gilliams' company with the stated purpose of obtaining income to operate a charitable foundation.  Two contracts signed between the victim and an intermediary stated that the funds would be invested in "treasury strips, treasury bills [and] U.S government paper."  

Instead, Gilliams is alleged to have misappropriated at least $2 million of the original $4 million investment, using over $1 million to fund a black-tie gala called the 'Joy to the World' festival at the Philadelphia Ritz-Carlton.  Additionally, approximately $1.6 million was sent to Ghana in what Gilliams described as an investment in gold.  Funds were also used to sustain a lavish lifestyle that included international travel.  Gilliam represented himself in an earlier civil suit filed by the victim, and in a motion to dismiss, alleged that the original contract called for an investment in gold and commodities in West Africa, specifically Ghana.  

Gilliams was arrested on October 5th, and was scheduled to be arraigned later that day.  

A copy of the Justice Department's press release is here.

A copy of the unsealed criminal complaint is here.