Fake $7.98 BILLION Qatar Royal Fortune Used to Fleece Investors!

SEC v. Gauntlet Holdings, LLC; Darrell W. Rideaux; Ali Derakhshanfar; Sal N. Ortiz — U.S. Securities and Exchange Commission Litigation Release No. 26594, dated July 24, 2026.

SEC charged Gauntlet Holdings, LLC, Darrell W. Rideaux, and Ali Derakhshanfar with securities fraud for orchestrating two schemes. One involved fake promissory notes backed by billions from a Qatari royal family, defrauding a company. The other defrauded an individual investor out of $1 million with promises of high returns. Final judgments were entered against the defendants, ordering disgorgement, interest, and civil penalties.

In Plain English

Imagine someone told you they had a secret way to make a lot of money, like claiming they had billions from a royal family for a business deal. They might even show you a fake video to prove it. Then, they ask for your money, promising huge profits, but you end up losing everything. That's what happened here, and the SEC stepped in to stop it and get some money back.

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. Fabricated Royal Connection Gauntlet Holdings, LLC, Darrell W. Rideaux, and Ali Derakhshanfar allegedly created a fabricated relationship with a Qatari royal family member. They claimed Derakhshanfar had access to billions of dollars held in a bank in Doha, Qatar, through this supposed connection.
2. Promissory Notes Scheme Using this false premise, the defendants convinced a company's affiliate to pay them $1 million. This payment was presented as an 'advance' on anticipated profits from transactions involving 'senior secured notes' issued by Gauntlet, which were falsely claimed to be backed by the Qatari funds.
3. Fake Bank Account Video In a separate scheme targeting an individual investor starting in March 2024, Rideaux offered an investment promising 200% returns in 30 days. To solicit the investor, Rideaux sent a misleading video purporting to show 'Gauntlet's' online bank account, which in reality did not belong to Gauntlet.
4. Investor Defrauded The individual investor transferred $1 million to Rideaux's attorney's trust account based on these promises. However, the investor never received the promised profits or the return of their principal investment.
5. Misrepresentations to Investor Rideaux made numerous false and misleading statements to the investor throughout the second scheme. These included assurances about the safety and lucrativeness of the investment, culminating in the deceptive bank account video.

The Enforcement Action

On July 15, 2026, the U.S. District Court for the Central District of California entered a final judgment against defendants Gauntlet Holdings, LLC and Darrell W. Rideaux. The Court had previously entered a final judgment by default against defendant Ali Derakhshanfar on November 4, 2025, and a final consent judgment against relief defendant Sal N. Ortiz on July 14, 2025. The judgments permanently enjoin the defendants from violating anti-fraud provisions of federal securities laws. Gauntlet and Rideaux were ordered to pay disgorgement of $842,500 plus prejudgment interest of $165,809 and a civil penalty of $842,500. Derakhshanfar was ordered to pay disgorgement of $500,000 plus prejudgment interest of $143,837 and a civil penalty of $500,000. Ortiz was ordered to pay disgorgement of $142,500.

Named in this action: Gauntlet Holdings, LLC, Darrell W. Rideaux, Ali Derakhshanfar, Sal N. Ortiz.

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