Ponzi Scheme Funded International Travels, Lavish Returns Promised!

SEC v. Titanium Capital LLC, Henry Abdo — U.S. Securities and Exchange Commission Litigation Release No. 26512, dated March 30, 2026.

Titanium Capital LLC and its founder, Henry Abdo, operated a Ponzi scheme, defrauding at least 162 investors out of over $5.3 million. They promised guaranteed double-digit returns but instead used investor funds for Ponzi payments, personal expenses, and other illicit purposes. Both Abdo and Titanium have been permanently enjoined from future securities law violations, with Abdo also receiving a prison sentence.

In Plain English

Imagine someone promises to invest your money in a special fund that will grow your money very quickly, with no risk. But instead of investing it, they take your money and use it to pay off other people who invested earlier, like a chain reaction. They also spend some of it on themselves. That's what happened here, and the people in charge are now facing legal consequences.

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 Henry Abdo, through his company Titanium Capital LLC, told investors they would receive guaranteed double-digit returns with no risk of loss. He claimed investor funds would be loaned to traders on Titanium's proprietary currency exchange platform.
2. The Lie These claims were false; Titanium did not execute the promised transactions. Instead, Abdo and Titanium misappropriated investor assets.
3. Ponzi Payments A significant portion of investor funds was used to make Ponzi-like payments to earlier investors, creating the illusion of profitability.
4. Personal Enrichment Investor funds were also transferred to Abdo's family members and other related parties, and used to finance Abdo's international travels and personal expenses.
5. Promoter Commissions Commissions were paid to Titanium's promoters, who were recruited by Abdo to help sell the fraudulent investments without proper registration.
6. False Claims of Legitimacy Abdo and Titanium falsely claimed to investors that the company was registered with the SEC and that it was independently audited.
7. Continued Fraud The misconduct continued until Abdo's arrest by the FBI in November 2023, with at least $866,000 raised from investors between 2022 and that time.

The Enforcement Action

On March 4, 2026, the U.S. District Court for the Southern District of Florida entered a final judgment against Henry Abdo, permanently enjoining him from violating federal securities laws and ordering him liable for disgorgement of $2,920,668 plus $467,933 in prejudgment interest, offset by $375,479 from a parallel criminal action. On February 17, 2026, a final default judgment was entered against Titanium Capital LLC, with similar injunctions and monetary liability. Claims against Carol Ann Barsh and relief defendants Elias Halim Abdo and Ganna Migulina were dismissed.

Named in this action: Titanium Capital LLC, Henry Abdo.

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