SEC v. Jonathan Webb — U.S. Securities and Exchange Commission Litigation Release No. 26267, dated March 14, 2025.
The SEC charged Jonathan Webb of Massachusetts with defrauding investors in a securities offering. Webb allegedly promised to double investors' money within a year by investing in the foreign currency exchange market (Forex), even helping some secure personal loans to invest. He ultimately lost most of the investor funds, misappropriated some for personal expenses, and used other funds for Ponzi-like payments to earlier investors. Webb agreed to settle the charges, including paying nearly $400,000 in monetary relief.
In Plain English
Imagine someone told you they could easily double your money in a year by investing it in a special market. They even helped people get loans so they could invest more. But instead of making money, they lost most of it, used some for themselves, and paid off old investors with new investors' money. Now, they've agreed to pay back almost $400,000 to settle the case.
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
- Targeting Investors From at least January 2021 to August 2023, Jonathan Webb solicited approximately $1.7 million from at least 34 people for investment purposes. Many of these investors were low-income workers at a Massachusetts cemetery where Webb also worked, some of whom did not speak English and lacked financial experience.
- Making False Promises Webb falsely told investors he could "double their money within a year" by pooling their funds and investing in the foreign currency exchange market (Forex). He also "guaranteed the return of the capital and any interest earned."
- Facilitating Investment For investors who did not have substantial funds, Webb "helped secure personal loans" to enable them to invest. He even promised to make the monthly loan payments on their behalf.
- Converting and Transferring Funds Webb converted investor funds into crypto assets and then transferred these converted funds to overseas brokerage firms.
- High-Leverage Forex Trading The overseas brokerage firms allowed Webb to invest in the Forex market using "up to 500:1 leverage." He utilized an "algorithmic trading program" he purchased online for these investments.
- Suffering Significant Losses Despite the high leverage and trading program, Webb "lost hundreds of thousands of dollars in investor funds" through his Forex trading activities.
- Continuing to Mislead Even after incurring substantial losses, Webb "continued to solicit and accept investor funds," falsely guaranteeing capital return and promising "exorbitant potential returns."
- Misappropriating Funds In addition to investment losses, Webb "used some investor funds to pay back some earlier investors" (Ponzi-like payments) and "misappropriated funds for personal expenses."
- Total Loss of Funds By August 2023, the SEC complaint alleges that Webb "had lost most of the investor funds he had received" through his Forex trading.
The Enforcement Action
On March 14, 2025, the SEC filed settled fraud charges against Jonathan Webb, a Massachusetts resident. Webb agreed to settle the case by consenting to a permanent injunction from violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, a conduct-based injunction, disgorgement of $250,753 plus $29,391 in prejudgment interest, and a civil monetary penalty of $118,225. The settlement is subject to court approval.
Named in this action: Jonathan Webb.