SEC v. Justin R. Kimbrough, Prosperity Consultants, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26402, dated September 17, 2025.
The SEC charged Justin R. Kimbrough and others with running a multi-million dollar Ponzi scheme. Kimbrough and his company, Prosperity Consultants, LLC, defrauded at least 31 investors out of $3 million by falsely promising to invest their money in a real estate wholesale business and medical product resale. Instead, Kimbrough and his co-defendants misappropriated funds for personal use and paid existing investors with new investors' money. Kimbrough and Prosperity have consented to final judgments, permanently enjoining them from future securities law violations and requiring them to pay disgorgement, which is deemed satisfied by a forfeiture order in a parallel criminal case.
Imagine someone promises to invest your money in a cool business, like buying and selling medical supplies. They tell you your money will grow. But instead of investing it, they take a lot of it for themselves and use some of it to pay off earlier investors, making it look like the business is doing well. This is called a Ponzi scheme. The SEC stepped in and stopped this, getting judgments against the people involved to prevent them from doing it again.
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.
On August 5, 2025, the SEC obtained final consent judgments against Justin R. Kimbrough and Prosperity Consultants, LLC, in a case alleging a Ponzi scheme that raised at least $3 million from at least 31 investors. The judgments permanently enjoin Kimbrough and Prosperity from violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Kimbrough is also permanently enjoined from violating securities registration and broker-dealer registration provisions. The judgments impose an officer and director bar on Kimbrough and a conduct-based injunction. Kimbrough and Prosperity are ordered to pay jointly and severally disgorgement of $1,137,437.45 plus prejudgment interest of $86,882.82, which amounts are deemed satisfied by a forfeiture order of $2,560,938.87 against Kimbrough in a parallel criminal proceeding. The civil action remains pending against Kimbrough’s and Prosperity’s co-defendants, Terry Nikopoulos and four entities controlled by Nikopoulos.
Named in this action: Justin R. Kimbrough, Prosperity Consultants, LLC.