25-YEAR FRAUD FIESTA! California Man's $12.7M Ponzi Scheme EXPOSED!

SEC v. Edwin Emmett Lickiss, Jr. — U.S. Securities and Exchange Commission Litigation Release No. 26360, dated July 22, 2025.

The SEC charged Edwin Emmett Lickiss, Jr. with operating a $12.7 million Ponzi scheme for over 25 years. He allegedly defrauded approximately 80 investors by promising high-yield government bonds but instead used new investors' money to pay earlier investors or for personal expenses. The SEC is seeking permanent injunctions, disgorgement, and civil penalties.

In Plain English

Imagine someone promising to invest your money in a super-secret, high-paying government bond deal. But instead of actually investing it, they take money from new people who give them money and use that to pay off the people who invested earlier. They also use some of the money for themselves. This is like a house of cards – it only works as long as new people keep giving money, and eventually, it all collapses.

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 Promise Between 1998 and August 2024, Edwin Emmett Lickiss, Jr. allegedly told investors he had access to exclusive, high-yield investment opportunities, such as government bonds that paid between 9 and 32 percent interest annually.
2. The Investment Pitch Lickiss falsely represented that investors' money would be placed into these limited-opportunity, high-yield investments, implying a level of access and exclusivity that he alone possessed.
3. Raising Funds Over 25 years, Lickiss fraudulently offered and sold promissory notes totaling approximately $12.7 million to about 80 investors.
4. The Reality of the Scheme Instead of investing the money as promised, Lickiss allegedly used funds from new investors to make payments to earlier investors.
5. Personal Use of Funds In addition to paying earlier investors, Lickiss also allegedly used money from new investors to cover his personal expenses.
6. The Ponzi Structure This method of using new investor money to pay off earlier investors is the hallmark of a Ponzi scheme, which relies on a continuous influx of new funds to remain solvent.
7. Duration of the Fraud The alleged fraudulent activity spanned more than 25 years, from 1998 until August 2024, demonstrating a prolonged period of deception.

The Enforcement Action

On July 21, 2025, the Securities and Exchange Commission charged Danville, California resident Edwin Emmett Lickiss, Jr., with selling fraudulent promissory note investments to approximately 80 investors as part of a Ponzi scheme that lasted over 25 years. According to the SEC’s complaint, between 1998 and August 2024, Lickiss fraudulently offered and sold to investors approximately $12.7 million in promissory notes, which purported to pay interest rates of between 9 and 32 percent per annum. The complaint alleges that Lickiss falsely represented to investors that their monies would be invested in limited opportunity, high-yield government bonds or other high-yield investment opportunities to which only he had select access. In reality, as alleged, Lickiss used money from new investors to make Ponzi payments to earlier investors or for his personal expenses. The complaint, filed in the U.S. District Court for the Northern District of California, charges Lickiss with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctive relief, including conduct-based injunctions against Lickiss, disgorgement with prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Northern District of California announced charges against Lickiss.

Named in this action: Edwin Emmett Lickiss, Jr..

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