SEC Charges Ponzi Scheme Targeting U.S. Military Service Members

The Securities and Exchange Commission today announced settled charges against a Colorado man for defrauding investors, including cadets at the U.S. Air Force Academy. The SEC’s complaint alleges that over a two-year period, Milton J. Dosal, Jr. raised nearly $100,000 from approximately 41 investors under the guise that he would day-trade stocks on their behalf. According to the complaint, Dosal, a car enthusiast, met a number of investors through car club events, including an Air Force Academy cadet who Dosal then used to gain access to other cadets Dosal convinced to invest. The complaint alleges that Dosal falsely held himself out as a securities professional and misled investors about his trading activity and their investment returns. The complaint further alleges that Dosal’s empty promises included telling investors that they could, with little risk, expect weekly returns of up to ten percent.