Ponzi Scam Targeted Minorities, SEC Says

LOS ANGELES (CN) - Cydney Sanchez used her Beverly Hills company Horizon Property Holdings to target blacks and Latinos in a $6 million Ponzi scheme, the SEC claims in Federal Court. She promised 40 percent returns from an alleged foreclosure rescue business, but swiped more than $2 million, and spent more than $536,000 of it on airline tickets, jewels, cars and other luxuries, the SEC says.

Sanchez, 59, of Los Angeles, owned and managed Horizon, the SEC says. It claims she raised $6 million from more than 150 unsophisticated investors, returned $3.7 million of it "in a Ponzi scheme," and spent the rest however she liked.

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