DALLAS—The U.S. Securities and Exchange Commission (SEC) has charged three North Texas residents with orchestrating a massive Ponzi scheme that defrauded more than 200 investors out of at least $91 million, federal authorities announced today.
According to the SEC’s complaint, Kenneth W. Alexander II, Robert D. Welsh, and Caedrynn E. Conner lured investors with claims of a lucrative international bond-trading operation through Vanguard Holdings Group Irrevocable Trust (VHG), controlled by Alexander.
From May 2021 to February 2024, the trio allegedly promised:
- “Guaranteed” monthly returns of 3% to 6%
- Full principal repayment after 14 months
- “Pay orders” to “protect” investments from losses
In reality, the SEC says, VHG had no real revenue, and returns were paid using new investors’ money—the hallmark of a Ponzi scheme. Meanwhile, Alexander and Conner allegedly siphoned millions for personal luxuries, including Conner’s $5 million home purchase.
How the Fraud Unfolded
- Alexander and Welsh allegedly portrayed VHG as a billion-dollar bond-trading empire, though it was a sham.
- Conner, through his Benchmark Capital Holdings Irrevocable Trust, funneled $46 million into the scheme.
- The so-called “pay orders”—marketed as insurance against losses—were completely fake, the SEC says. SEC’s Response: “We Will Hold Fraudsters Accountable”
“The defendants operated a large-scale Ponzi scheme that caused devastating losses, while misappropriating millions for personal gain,” said Sam Waldon, Acting Director of the SEC’s Division of Enforcement.
The SEC’s lawsuit, filed in Texas federal court, seeks:
🔹 Permanent injunctions against the trio
🔹 Repayment of stolen funds plus interest
🔹 Civil penalties
The case, investigated by the SEC’s Fort Worth Regional Office, will now move to litigation. If convicted, the defendants could face severe financial penalties and possible criminal charges.
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