SEC v. Henry Paul Regan, Jr. — U.S. Securities and Exchange Commission Litigation Release No. 26392, dated September 9, 2025.
The SEC charged Henry Paul Regan, Jr. with defrauding hundreds of investors out of over $63 million. Regan allegedly promised high returns on promissory notes and partnership interests, but instead used investor funds for Ponzi-like payments, commissions, and international transfers. He ceased payments and communication in November 2024 after media scrutiny.
In Plain English
Imagine someone promising you a really high interest rate on your savings, like 15% a year, which is way more than banks usually offer. This person, Henry Regan, told people he'd invest their money in things like precious metals or special health insurance plans that were guaranteed by the government. But instead of investing the money as promised, he used it to pay off earlier investors, pay salespeople, and send money to many companies overseas. When people started asking too many questions, he stopped paying and disappeared.
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
- Recruiting Investors with High-Yield Promises From September 2022 to November 2024, Henry Paul Regan, Jr. solicited hundreds of U.S.-based investors. He offered promissory notes and partnership interests in companies like Next Level Holdings LLC, Yield Capital Management Inc., and Yield Wealth Ltd., promising annual returns as high as 15.5% for terms of 3 to 10 years.
- Fabricating Investment Strategies Regan claimed investor funds would be used to purchase and sell unrefined Colombian-sourced precious metals. He also asserted that funds invested in Yield would generate returns from health insurance policies issued under the Affordable Care Act, which he claimed were guaranteed by the federal government.
- Misappropriating Investor Proceeds Contrary to his promises, Regan allegedly used most of the investor funds for purposes other than stated. A significant portion was used to make Ponzi-like payments to earlier investors.
- Funding a Sales Network A substantial amount of the investor proceeds was also allegedly used to pay commissions to a network of salespeople that Regan recruited to sell these fraudulent investments.
- International Fund Transfers Regan also wired large sums of money to dozens of international companies, indicating a complex and potentially opaque use of investor capital beyond the stated investment strategies.
- Providing False Assurances Regan provided materially false and misleading statements both orally and in writing. He also arranged for most investors to receive forged insurance or surety bond agreements, or limited partnership agreements containing false insurance guarantees.
- Investor Losses and Scheme Collapse As a result, investors did not receive their promised returns and suffered significant losses. By November 2024, after media scrutiny, firms and brokers ended their relationships with Regan's companies, leading him to cease paying and communicating with investors.
The Enforcement Action
On September 4, 2025, the SEC charged Henry Paul Regan, Jr. with defrauding investors out of more than $63 million through a scheme involving promissory notes and partnership interests. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, alleges violations of securities laws and seeks injunctions, disgorgement, prejudgment interest, and penalties. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against Regan. The SEC investigation was conducted by Michael F. McGraw and Brian R. Higgins, supervised by Brendan P. McGlynn and Scott A. Thompson. Litigation is led by Christopher R. Kelly, supervised by Gregory R. Bockin.
Named in this action: Henry Paul Regan, Jr..