SILVER SPRING, Md.: Three Maryland men presenting themselves as pastors targeted church members and other investors in a Ponzi scheme that defrauded victims out of more than $28 million, according to a federal indictment unsealed Friday.
Instead of providing customers with high rates of return and helping with charitable religious causes, the three men used the money to pay off other investors and to fund lavish lifestyles that included luxury cars, private jets and family vacations, Justice Department prosecutors said.
The July 27 indictment against Dennis Mbongeni Jali, 35; John Erasmus Frimpong, 40; and 61-year-old Arley Ray Johnson includes charges of wire fraud, securities fraud and money laundering.
Federal regulators say the men fraudulently raised millions of dollars from approximately 1,200 investors, many of them African immigrants. The indictment identifies nine of the victims as residents of Maryland, Indiana or Texas and says they included nurses, an accountant, an engineer and a car dealership manager.
Jali was the owner and CEO of a Largo, Maryland-based company called 1st Million Dollars, which had satellite offices in Florida and elsewhere. Frimpong served as the companys chief marketing officer. Johnson was its chief operating officer.
Jali, Frimpong and Johnson attended church functions to recruit investors and tried to portray themselves as religious men more interested in the philanthropic financial freedom of others than personal financial gain, the indictment says.
The three men presented themselves as pastors and told prospective investors that 1st Millions work was in furtherance of Gods mission in that it helped churches and their members achieve personal wealth and financial freedom, it adds.
The defendants persuaded numerous victims to pay them in wire transfers, checks and cash under the false pretense that their money would be invested in the foreign exchange and cryptocurrency markets, U.S. Attorney Robert Hurs office said in a news release. Their company offered contracts that guaranteed investors monthly rates of return ranging from 6% to 35% of their initial investments regardless of market volatility, according to the indictment.
Frimpong, a native of Ghana who isnt a U.S. citizen, was arrested Friday at his Upper Marlboro home. He later pleaded not guilty to all 10 counts he faces. A federal magistrate judge ordered him to remain in custody pending a detention hearing Wednesday. Frimpongs attorney didnt immediately respond to a phone call and email seeking comment.
Johnson, of Bowie, is expected to surrender to authorities on Monday, according to a spokeswoman for Hurs office. Sarah Hall, an attorney for Johnson, declined to comment.
Jali, formerly of Upper Marlboro, fled the U.S. in May 2019 but has been arrested in South Africa, Hurs office said. Office spokeswoman Marcia Murphy said Jali doesnt have an attorney here yet.
The Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission also filed related civil actions against the defendants Friday.
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