SEC Charges Two More Executives in $112 Million Trucking Ponzi Scheme
The U.S. Securities and Exchange Commission (SEC) has expanded its crackdown on a $112 million Ponzi scheme tied to the now-defunct Royal Bengal Logistics (RBL) of Coral Springs, Florida, by charging two more executives. This scheme predominantly targeted Haitian-Americans in Florida.
New Charges Filed
Ricardi Celicourt, 40, of Coconut Creek, and Brisly Guillaume, 39, of Boynton Beach, are the latest individuals named in the SEC’s lawsuit. Filed in the U.S. District Court for the Southern District of Florida, the lawsuit alleges that from April 2021 to June 2023, the two helped raise nearly $109 million from 1,500 investors through an unregistered securities offering by RBL. Both are accused of violating securities registration and broker-dealer registration provisions.
Role and Compensation
Celicourt, RBL’s vice president of business development and investor relations, and Guillaume, the director of business development and investor relations, allegedly sold investments to the public without being registered brokers. They reportedly received approximately $1.3 million in transaction-based bonuses for their participation in the scheme.
Background of Royal Bengal Logistics
Royal Bengal Logistics was granted common carrier authority in August 2018, which was revoked in August 2023 when the SEC shut down the company. At its peak, RBL claimed to have 91 drivers and 166 power units. The company offered several investment opportunities, including short- and long-term programs requiring minimum investments ranging from $25,000 to $60,000.
The Man Behind the Scheme
Sanjay Singh, 43, the founder of RBL, was arrested in June 2023 and charged with conspiracy to commit wire fraud, wire fraud, and engaging in transactions with unlawful proceeds. According to federal investigators, Singh and his co-conspirators misrepresented RBL as a thriving business while it was losing money. They allegedly used new investor funds to pay previous investors, a hallmark of a Ponzi scheme.
Misuse of Funds
The SEC's complaint against Singh details how he misappropriated nearly $14 million for personal expenses, including home renovations and mortgage payments. Additionally, Singh allegedly diverted over $19 million into two brokerage accounts he controlled, engaging in risky trading that resulted in losses exceeding $1 million.
Legal Proceedings
Singh’s attorney has filed a pretrial motion to exclude evidence related to the SEC case and investor losses incurred after RBL entered receivership. Singh’s jury trial is scheduled for October 7 in U.S. District Court in Fort Lauderdale.
Conclusion
The SEC’s expanded charges underline the severity of the alleged Ponzi scheme operated by Royal Bengal Logistics. As the legal process unfolds, it serves as a stark reminder of the importance of regulatory compliance and the severe consequences of financial fraud.
Click here to learn more about SEC Charges Two More Executives in $112 Million Trucking Ponzi Scheme.