BALTIMORE, MD — Maryland Attorney General Anthony G. Brown’s Securities Division has announced significant legal actions against three individuals involved in a multi-million-dollar Ponzi scheme linked to Prosperity Partners, Inc. The case involves violations of the Maryland Securities Act, leading to fines and permanent bans from the securities and investment advisory industry in the state.
The individuals—Mathias Bama, Valentine Bama, and Hilaire Leunkam—have been ordered to pay a total of $17.2 million in fines and are permanently prohibited from engaging in any securities-related activities in Maryland. These actions stem from their involvement in the sale of over $28.9 million worth of securities to more than 580 investors across Maryland and other states, through Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC (referred to collectively as “Prosperity”).
According to the Securities Division’s investigation, Prosperity promised investors a 6% monthly return (72% annualized) on promissory notes, a return that the company could not substantiate. Prosperity failed to invest funds in any legitimate ventures capable of generating the promised returns, instead allegedly operating a Ponzi scheme, using new investors’ money to pay returns to earlier investors.
“Investors in Maryland deserve protection from fraudulent schemes that put their hard-earned money at risk,” said Attorney General Brown. “This case is a reminder that companies must be held accountable for undermining public trust and financial security. Our office will continue to safeguard Maryland investors and pursue fraudsters who exploit the system.”
The Securities Division’s investigation was triggered by complaints from investors after Prosperity stopped making interest payments on its promissory notes in 2023. In response, the Division issued a Summary Cease and Desist Order in March 2023, halting the fraudulent activities and prompting further legal action.
Both Prosperity Partners, Inc. and Prosperity Medical and Health System, LLC have filed for Chapter 7 Bankruptcy, and independent trustees have been appointed to manage the liquidation of the companies’ assets for the benefit of creditors, including defrauded investors. Additionally, a Consent Order has been issued for Prosperity, permanently barring the company from conducting securities or investment advisory business in Maryland.
Attorney General Brown thanked the team of investigators and legal professionals who helped bring the case to a resolution, including Securities Commissioner Melanie Lubin, Assistant Securities Commissioner Kelvin M. Blake, and Assistant Attorney General Katharine M. Weiskittel.
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_ConsentOrder_Individuals_final_Prosperity_111424.pdf
- https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20240026_SETTLEMENTAGREEMENT_111424.pdf
- https://www.marylandattorneygeneral.gov/Securities%20Actions/2024/20230026_Prosperity_Medical_CO_11142024.pdf
Investors who believe they have been affected by this scheme or who have concerns about their investments can contact the Maryland Securities Division at 410-576-6360 or via email at securities@oag.state.md.us.
