Billions in Fake Funds! Sheikh Scheme Dupes Millions!

SEC v. Gauntlet Holdings, LLC, Darrell W. Rideaux, Ali Derakhshanfar, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26266, dated March 13, 2025.

The SEC charged Gauntlet Holdings, LLC, its managing member Darrell W. Rideaux, and Ali Derakhshanfar with offering fraud. They allegedly ran two schemes: one involving fake promissory notes backed by billions from a Qatari royal family member, and another defrauding an individual investor out of $1 million with a promise of high returns.

In Plain English

Imagine someone tells you they have a secret way to make a lot of money, like having a special key to a treasure chest. They show you fake papers that look like the key is real and promise you'll get rich quick. But the treasure chest and the key are not real, and your money is gone. That's what happened here, twice.

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. The Fake Billions Scheme Gauntlet Holdings, LLC, along with Darrell W. Rideaux and Ali Derakhshanfar, allegedly convinced a publicly traded company that they had access to $7.98 billion held by a Qatari royal family member in a Doha bank. This was presented as backing for Gauntlet Notes.
2. Deceptive Tactics To make the scheme believable, Rideaux and Derakhshanfar allegedly used a fake email address purportedly belonging to a sheikh and presented fictitious bank records to the company.
3. Advance Payment Based on these false pretenses, the company paid $1 million to Gauntlet, Rideaux, and Derakhshanfar as an advance on anticipated profits from transactions involving the non-existent promissory notes.
4. The Second Fraud Separately, Gauntlet and Rideaux allegedly defrauded an individual investor out of $1 million. They promised high returns, specifically 200% in 30 days, through an investment scheme involving asset-backed securities.
5. Misleading Investor Rideaux allegedly sent the investor a misleading video, claiming it showed Gauntlet's online bank account. However, the complaint states the account depicted in the video did not actually belong to Gauntlet.
6. Investor Loss The individual investor transferred $1 million, but never received the promised returns, nor was the principal amount returned.
7. Relief Defendant Sal N. Ortiz is named as a relief defendant, alleged to have received a portion of the $1 million paid by the company in the first scheme, to which he had no legitimate claim.

The Enforcement Action

The SEC filed charges against Gauntlet Holdings, LLC, Darrell W. Rideaux, and Ali Derakhshanfar for two alleged fraudulent schemes. The first involved offering fraud related to promissory notes purportedly backed by $7.98 billion held by a Qatari royal family member, from which a company allegedly paid $1 million. The second scheme defrauded an individual investor of $1 million through a promised high-return investment. Sal N. Ortiz is named as a relief defendant. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against the defendants, and disgorgement plus prejudgment interest from Ortiz. The case is filed in the U.S. District Court for the Central District of California.

Named in this action: Gauntlet Holdings, LLC, Darrell W. Rideaux, Ali Derakhshanfar, Sal N. Ortiz.

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