A Massachusetts man fraudulently touting bona fides as an advisor will plead guilty to co-running a $3.2 million Ponzi scheme and using COVID-19 small business loan proceeds to keep the fraud afloat, according to the Justice Department.
Milendophe Duperier and his girlfriend and business partner, Vanessa Joseph, were both charged with (and agreed to plead guilty to) one count of conspiracy to commit wire fraud.
Court records revealed that between early 2018 and December 2022, Duperier would act as an investment advisor, soliciting money from victims and claiming he’d invest their funds. However, the duo used the money to pay prior investors or for personal purchases, including luxury cars (such as Tesla models X and S, a Mercedes-Benz S Class and an Infiniti QX30) and mortgage and credit card payments.
According to an administrative complaint filed against Duperier and Joseph in 2022 by the Massachusetts Commonwealth Securities Division, the duo focused on victimizing members of Massachusetts’ Haitian community (Duperier’s father was a pastor at a Haitian church in the state).
Neither registered as investment advisors nor had any experience, opting to educate themselves via YouTube channels or other online tutorials. Duperier and Joseph told investors the funds would provide capital for business ventures and that they’d receive their principal back “with interest.”
Additionally, Duperier and Joseph ran several business entities that received Small Business Administration and Paycheck Protection Program loans from the federal government during the COVID-19 crisis. Joseph didn’t use any of the funds for payroll, instead taking the money and feeding it back into the Ponzi scheme to pay existing investors.
According to the Massachusetts complaint, the duo acquired SBA and PPP loans totaling more than $1.42 million, which comprised “the substantial majority” of funds in their bank and brokerage accounts. According to the DOJ, Duperier told one client he could not make promised interest payments because the war in Ukraine had “negatively impacted the stock market.”
Plea hearings for the defendants aren’t scheduled yet, but sentencing for conspiracy to commit wire fraud can include up to 20 years in prison and three years of supervised release.
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