SEC Charges Sales Agents in $112 Million Royal Bengal Ponzi Scheme
The U.S. Securities and Exchange Commission charged Broward County, Fla., residents Ricardi Celicourt and Brisly Guillaume with violations of the securities registration and broker-dealer registration provisions of the federal securities laws in connection with their participation in an unregistered securities offering by Royal Bengal Logistics Inc. The trucking and logistics company fraudulently raised approximately $112 million from 1,500 investors and targeted Haitian-Americans.
The SEC’s June 2023 complaint reported previously by AltsWire alleged that, from at least 2019 through 2023, Royal Bengal’s then-president Sanjay Singh offered and sold investors high-yield investment programs that purportedly generated 12.5% to 325% in guaranteed returns. As alleged, Singh and Royal Bengal promised investors the company would use their money to expand operations and increase its fleet of semi-trucks and trailers. Defendants touted the success of its business model, promising investors that their money would be used to grow Royal Bengal’s operations and increase its fleet of semi-trucks and trailers.
The complaint alleges that, from 2021 through 2023, defendants raised at least $109 million through Royal Bengal’s unregistered offering and received combined compensation of $1.3 million in purported bonuses tied to their efforts. As alleged, during this time period, the defendants were not registered with the commission as brokers or dealers. Also, Royal Bengal’s securities were not registered with the commission, and there was no valid exemption from registration.
The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges Celicourt and Guillaume with violating the registration provisions of Section 5 of the Securities Act of 1933 as well as violating the broker-dealer registration provisions of Section 15(a) of the Securities Exchange Act of 1934. The SEC’s complaint seeks permanent injunctions, civil money penalties, and disgorgement of ill-gotten gains with prejudgment interest against both defendants.
The SEC has been assisted by Florida’s Office of Financial Regulation, the U. S. Attorney’s Office for the Southern District of Florida, the FBI’s Miami Field Office, and the U.S. Department of Transportation, Office of Inspector General, Southern Region.
This was the second enforcement action in the matter. In June 2023, the SEC filed an emergency action against Royal Bengal and Singh, and obtained emergency orders freezing Royal Bengal’s/Singh’s assets and appointing a receiver over Royal Bengal.
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