The US Securities and Exchange Commission (SEC) has charged an investment fund CEO with running an illegal ponzi scheme, scamming investors out of millions of dollars over the course of two years.
Maria Dulce Pino Dickerson and her companies Creative Legal Fundings in CA and The Ubiquity Group LLC are accused of raising approximately US$7m from more than 130 investors through a fraudulent securities offering, targeting members of the Filipino-American community across the United States.
According to the SEC’s complaint, from approximately March 2021 through May 2023, Dickerson convinced investors to acquire interests in Creative Legal Fundings by falsely claiming that she would use their investments to make loans to personal injury attorneys to fund their lawsuits. In exchange, Dickerson is accused of claiming that the company would receive a portion of any eventual settlements or recoveries.
According to the complaint, Dickerson promised investors guaranteed high returns of 10-17.5% per month. In reality, according to the SEC, Creative Legal Fundings did not make any loans, conduct any other business, or generate any returns. Instead, Dickerson is accused of spending at least US$2.5m in investor funds on personal real estate, gambling, travel and designer goods purchases.
Dickerson also allegedly made Ponzi-like payments to earlier investors using funds from new investors in an attempt to keep the scheme going. The complaint further alleges that, after Dickerson ran out of money to pay Creative Legal Fundings’ investors in around May 2023, she shuttered that company, opened The Ubiquity Group, and tried to raise additional funds using similar misrepresentations.
“As alleged, Creative Legal Fundings’ operations were neither creative, nor legal. This was nothing more than fraud perpetrated against retail investors, many of whom were members of the Filipino-American community,” said Monique Winkler, Director of the SEC’s San Francisco Regional Office.
The SEC’s complaint, filed in US District Court for the Eastern District of California, charges Dickerson, Creative Legal Fundings, and The Ubiquity Group with violating the anti-fraud and registration provisions of the federal securities laws. The SEC seeks permanent injunctions, including conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC also seeks an officer-and-director bar against Dickerson.
In a parallel action, the US Attorney’s Office for the Eastern District of California has announced criminal charges against Dickerson.
