MILLIONS VANISH! Mortgage & Ponzi Schemes Ripped Off Investors!

SEC v. Thurman P. Bryant, III and Bryant United Capital Funding, Inc., Arthur F. Wammel and Wammel Group, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26252, dated February 20, 2025.

The SEC obtained final judgments against Thurman P. Bryant, III, Bryant United Capital Funding, Inc., Arthur F. Wammel, and Wammel Group, LLC, for orchestrating fraudulent mortgage investment and Ponzi schemes. These schemes defrauded investors out of millions by making false promises of guaranteed returns. The judgments include permanent injunctions and orders for disgorgement and prejudgment interest, which were deemed satisfied by amounts collected by a receiver and restitution from parallel criminal cases.

In Plain English

Imagine someone promising you a super-safe way to make money by lending it out for home loans, guaranteeing a great return. But instead of actually doing that, they took your money and used it to pay off earlier investors, like a pyramid scheme. That's what happened here. The SEC stepped in to stop this, and the court ordered the people responsible to pay back the money they took, though much of it was already recovered through other legal actions.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Promising Guaranteed Returns Thurman P. Bryant, III, and Bryant United Capital Funding, Inc. promised investors guaranteed returns on investments in the mortgage industry. They claimed to have raised $22.7 million from investors based on these false promises.
2. Operating a Ponzi Scheme Arthur F. Wammel and Wammel Group, LLC ran a related Ponzi scheme. This scheme defrauded Bryant's investors and others, raising an additional $44.7 million.
3. Misrepresenting Investment Use The defendants allegedly used investor funds not for legitimate mortgage investments as promised, but to pay earlier investors, a hallmark of a Ponzi scheme. This involved defrauding investors and others.
4. Violating Securities Laws The SEC charged the defendants with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. These laws prohibit fraudulent conduct in the offer and sale of securities.

The Enforcement Action

On January 28, 2025, the U.S. District Court for the Eastern District of Texas entered final judgments against Thurman P. Bryant, III, Bryant United Capital Funding, Inc., Arthur F. Wammel, and Wammel Group, LLC. The judgments resolved all claims from the SEC's complaint filed May 15, 2017, and amended January 26, 2018. The court ordered defendants to pay disgorgement with prejudgment interest. Specifically, Bryant and Bryant United were ordered to pay $4,290,830.71 in disgorgement plus $162,899.10 in interest. Wammel and Wammel Group were ordered to pay $5,989,605.50 in disgorgement plus $227,392.17 in interest. These amounts were deemed satisfied by funds collected by a court-appointed receiver and by restitution ordered in parallel criminal cases against Bryant and Wammel.

Named in this action: Thurman P. Bryant, III and Bryant United Capital Funding, Inc., Arthur F. Wammel and Wammel Group, LLC.

Original SEC litigation release ↗ · Browse all cases