PLANO, Texas (CN) – Titan Wealth Management and its owner Thomas Irby II took more than $3 million from 30 clients in a Ponzi scheme, the SEC claims in Federal Court.
Beginning in 2007, Irby recommended that clients invest in European mid-term notes, known as MTNs, and promised short-term returns of 10 percent to 50 percent, the SEC says. He claimed that Titan would not receive any compensation from the purchase or sale of the MTNs, which he said were protected by a $10 million MTN he owned that could be liquidated to pay back his clients, according to the complaint.
But the SEC says Irby diverted nearly $1 million to his personal account at Titan and distributed the rest to other defendants that had no possible connection with making investments.
Irby, 38, lives in Farmers Branch, Texas.
Relief defendants – Joseph Romanow, David Romanow, Karen Bowie, and France Michaud, all of Canada, allegedly received at least $845,000 of the investors’ money, for “no apparent consideration.” John J. Kim, 39, of Rancho Santa Margarita, Calif., and his company, Pegasus Holding Group, allegedly received at least $120,000 for no apparent consideration.
The SEC wants the money back, an injunction and penalties.