Ponzi Scheme Client Alert

    By W. Edgar Spivey, Litigation

    When a Ponzi scheme collapses, recovery can be difficult, yet experienced legal advisors can help victims attempting to recover fair compensation. Kaufman & Canoles has experience recovering fair compensation for victims of Ponzi schemes and other forms of financial fraud.

    Edward L. Moody, Jr. and CM Capital Management, LLC

    The SEC alleges a Ponzi scheme perpetrated by Richmond, Virginia based money manager, Edward Lee Moody, has harmed at least 60 individuals and entities and may have cost these investors nearly $5 million. Instead of investing client funds, Mr. Moody, according to the SEC complaint, used the money to purchase and remodel a house, buy a car, travel, and entertainment. According to the SEC, he also used the money to fund his own speculative trading, resulting in substantial losses.

    According to the SEC investigation, Mr. Moody conducted his Ponzi scheme through CM Capital Management and G.E. Holdings Corp. Both of these firms, according to the complaint, falsely claimed to be members of FINRA and the SIPC, using false information to establish investor trust. Moreover, the SEC investigation alleges that Mr. Moody faked monthly account statements by doctoring forms and sending them to clients. The investigation contends that the perpetrators modeled these returns on a Scottrade statement, replacing the Scottrade name with G.E. Holdings. This Ponzi scheme, according to the SEC, relied upon fake investment returns to take advantage of unsuspecting victims.

    Representation by Kaufman & Canoles

    A number of victims are working with Kaufman & Canoles to recover fair compensation for their losses. An experienced team, such as those at Kaufman & Canoles, can help navigate the complicated process to ensure that victims receive their fair share of recoverable assets. More importantly, Kaufman & Canoles has identified other third parties who are potentially responsible for losses resulting from Moody’s activities. Every investor in a Ponzi scheme has been duped and betrayed by someone who they trusted with their money. Yet, some recover more than others. A skilled legal advisor can assist in determining the best approach to obtaining the maximum amount possible for each investor.

    If you believe that you were harmed by Mr. Moody’s schemes and have experienced financial loss as a result, Kaufman & Canoles may be able to help. For more information, contact Ed Spivey at (757) 624.3196 or

    The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2024.