September 10, 2025
Ponzi Scheme
On September 9, 2025, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against Paul Regan, alleging he ran a high-yield investment scheme tied to Next Level Holdings and Yield Wealth that left investors with more than $50 million in losses. Prosecutors say Regan promised “guaranteed” returns, misled investors about insurance protections, and operated the businesses like a Ponzi scheme. He was arrested on September 4, 2025, and the case is assigned to U.S. District Judge Valerie E. Caproni, according to the DOJ press release.
In a parallel civil action issued the same day, the SEC filed Litigation Release No. 26392, charging Regan with orchestrating a $63 million offering fraud from September 2022 through November 2024 through entities including Next Level Holdings LLC, Yield Capital Management Inc., and Yield Wealth Ltd. The SEC alleges he promised returns as high as 15.5 percent and then used new money to pay earlier investors and sales commissions.
According to prosecutors, Regan sold “Next Level Notes” and later “Mega High Yield Term Deposit” and “Super High Yield Term Deposit” investments through Yield. Marketing materials claimed double-digit, “fully insured” yields, described Yield as a digital bank, and touted additional insurance protections up to $10 million. The indictment alleges these claims were false and that investor funds were not used as represented. Details appear in the DOJ filing summary and in the SEC’s litigation release.
In late 2024, interest payments reportedly stopped and wind-down notices followed, leaving many families uncertain about their savings and potential tax issues. Prior reporting describes how investors were unable to access retirement funds and how regulators issued subpoenas while state investigations began. See the Wall Street Journal’s coverage: “Federal Prosecutors Charge Financier Who Offered ‘Guaranteed’ High Yields”.
“A path to loss recovery is open for some of those who lost money in these Next Level or Yield programs,” says John Chapman, founding principal at ChapmanAlbin. “These folks may have valuable legal rights, and they should not be sitting on the sidelines waiting to see what happens next; it is time to take action.”
Chapman also notes that while government investigations may take years, investors who depended on monthly distributions need near-term options to pursue recovery.
Many investors were introduced to these programs by brokers or investment advisers. If a financial professional recommended or sold these products, there may be claims for unsuitable recommendations, failure to conduct due diligence, or misleading statements. Those claims can often be pursued through FINRA arbitration or court actions against the firms and individuals involved.
These patterns track what prosecutors and the SEC now allege about Next Level and Yield, as outlined in the DOJ announcement and the SEC’s Litigation Release No. 26392.
For more than thirty years, ChapmanAlbin has represented investors nationwide and helped recover over $150 million in losses. If you invested in Next Level or Yield Wealth on the advice of a broker or adviser, contact us for a free evaluation of your potential claims.
Call 877-410-8172 or visit chapmanalbin.com to speak with an attorney.
Allegations summarized here are drawn from charging documents and regulatory filings as of September 10, 2025. Regan is presumed innocent unless and until proven guilty.
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