August 26, 2021
The attorneys at ChapmanAlbin LLC and the Law Office of Craig H. Kuglar, LLC have been speaking with many Horizon Private Equity investors in recent days regarding the allegations that Horizon Private Equity is a Ponzi scheme, operated by John Woods and Southport Capital. Investors are devastated by the news that they may have lost all of the hard-earned savings they invested in Horizon. However, investors should not lose hope. The attorneys are preparing claims against third parties responsible for their losses including the brokers, advisors, accountants, and attorneys who helped Woods and Southport perpetrate the scheme.
Horizon investors were convinced the scheme was safe and were assured they would receive guaranteed returns of 6-7% annually. Unfortunately, Horizon and Southport advisors lied to them. They were told their money was invested in legitimate enterprises including government bonds, stocks, and small real estate projects. They were not informed that their money would be used to pay back earlier investors, like a Ponzi scheme. Ultimately, Ponzi schemes such as Horizon are doomed to fail when the perpetrators cease to find new investor capital. In this case, the Securities and Exchange Commission (“SEC”) – the regulator tasked with protecting customers in securities markets – stepped in prior to the Horizon Ponzi scheme collapsing, because it was concerned new investors would continue investing money, which would have further perpetuated the alleged fraud and caused additional losses to new investors.
The SEC has since brought legal action against Horizon, John J. Woods, and Southport Capital in an attempt to ensure the Ponzi scheme ceased operating, curb investor losses, and try to collect and return what money it is able to back to investors. In our experience, it is difficult for the SEC to recover more than a small percentage of the losses because perpetrators of Ponzi schemes often use investor money to pay for personal expenses, hide the money, or pay it out to other investors leaving most investors, especially the ones who invested late, with near total losses. The SEC has bolstered our belief that there won’t be enough Horizon and Southport assets for investors through the following statement in its Complaint:
“Southport and Horizon, are worth far too little for there to be any realistic prospect that the Ponzi scheme will be able to pay back existing investors their principal, let alone the promised returns.”
Fortunately, investors do have other options. The attorneys at ChapmanAlbin, a Cleveland, Ohio-based law firm, and the Law Office of Craig H. Kuglar, an Atlanta, Georgia-based law firm, believe certain third parties who were involved, in various capacities, with the Horizon Ponzi scheme, are culpable for their misconduct. Jason Albin, a partner at ChapmanAlbin states: “We believe several third parties the SEC is not pursuing are liable to investors. We have been contacted by several Horizon investors who have confirmed third party involvement. We are preparing to file legal claims for them in court and arbitration with the goal of maximizing their recovery of the Horizon losses.”
ChapmanAlbin LLC and the Law Office of Craig Kuglar have helped investors across the country recover millions of dollars in savings lost in Ponzi schemes, fraudulent investment schemes, or due to the misconduct of financial advisors and brokers. If you lost money in the Horizon Private Equity scheme, call us today at 1-877-410-8172, to speak with an investor rights attorney about your recovery options.