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David Schamens, $7M Ponzi Scheme, New Jersey 2024
Newark, N.J. – David Schamens, a 65-year-old man from Greensboro, North Carolina, has been charged with a $7 million Ponzi scheme that left at least 25 investors reeling.
According to the indictment, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading Fund LLC, Tradestream Analytics LTD, Tradedesk Financial Group Inc., and others. He promised his victims annual returns of 12 to 30 percent.
In 2019, Schamens began soliciting investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. He directed his victims to wire funds directly or transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Schamens’ scheme was designed to keep his customers’ trust by sending false account statements, posting fake monthly account statements on his companies’ websites, and sending false tax documents reporting non-existent earnings.
The indictment alleges that Schamens misappropriated $7 million from his victims, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay personal expenses.
The charges against Schamens carry a maximum potential penalty of 20 years in prison and fines of up to $5 million for securities fraud, $250,000 for wire fraud, and $500,000 for money laundering.
The investigation was led by special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel.
The government is represented by Assistant U.S. Attorneys Anthony Torntore and Sophie E. Reiter of the Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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