SEC Charges Founder and His Two New Jersey-Based Companies in Alleged $16 Million Ponzi Scheme

What the SEC announced

The Securities and Exchange Commission charged Ernest Ossei Boateng and two New Jersey-based companies he controls, Intercontinental Wealth Network LLC and I Wealth Network LP, for allegedly raising approximately $16 million from more than 200 inexperienced investors through a Ponzi scheme he operated from at least January 2020 until at least March 2026.

According to the SEC’s complaint, Boateng, acting through his two companies, solicited, recommended, and sold interests in an alleged investment fund, primarily targeting Christians of Ghanaian heritage in New York and New Jersey, many of whom had no prior investing experience. The complaint alleges that Boateng told investors that their investments would generate guaranteed fixed returns and that the investment fund would pursue a low-risk investment strategy. Rather than investing the money as promised, however, Boateng allegedly misappropriated more than $5.8 million for his personal expenses, including the purchase, renovation, and furnishing of his home. Boateng also allegedly used approximately $6.6 million to make Ponzi-like payments to earlier investors. The complaint further alleges that, to the limited extent Boateng did invest the money, he failed to do so in low-risk investments with fixed returns. Instead, according to the complaint, Boateng used investor money to engage in high-risk, speculative day trading, leading to more than $750,000 in trading losses.

The SEC’s complaint, filed in the U.S. District Court for the Eastern District of New York, charges Boateng, Intercontinental, and I Wealth with violating the antifraud provisions of the Securities Act of 1933 and Securities Exchange Act of 1934, and Boateng and Intercontinental with violating the antifraud provisions of the Investment Advisers Act of 1940. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains with pre-judgment interest, and civil penalties against all of the defendants, as well as conduct-based injunctions against Boateng and Intercontinental.