Dawn J. Bennett, $20M Ponzi Scheme, Maryland 2018

Greenbelt, Maryland – In a shocking turn of events, 56-year-old Dawn J. Bennett of Chevy Chase, Maryland, has been sentenced to 20 years in federal prison for her conviction on 17 federal charges related to a $20 million Ponzi scheme.

According to the U.S. Attorney for the District of Maryland, Robert K. Hur, Bennett knowingly defrauded retirees of their life’s savings, most of which she used for her own personal benefit. "She’s been held accountable for her lies and theft and will now spend years in federal prison," Hur said.

Bennett, the owner and operator of DJB Holdings, LLC, d/b/a DJBennett.com, an Internet retail website for luxury sportswear, solicited individuals to invest money in her business, offering an annual interest rate of 15% via convertible or promissory notes. However, she made false and misleading statements to entice investors, concealing the true financial condition of her companies from them.

The evidence presented at trial showed that Bennett misappropriated investor funds, using them to fund a lavish lifestyle, pay her personal legal expenses, and repay previous investors with funds she received from new investors. This is consistent with a Ponzi scheme, a fraudulent investment scheme where the operator of the scheme solicits investors by promising high rates of return with little risk.

Over the course of the scheme, Bennett obtained more than $20 million from 46 investors, many of whom were retirees who knew of her from a radio show she hosted. Some of those funds were used to pay earlier investors, while the rest was used for her personal benefit, including a luxury suite at a football stadium, a website operator to arrange for priests in India to perform religious ceremonies to ward off federal investigators, astrological gems, and cosmetic medical procedures.

The sentence was announced by U.S. District Judge Paula Xinis, who also ordered Bennett to pay restitution of $14,504,290 and forfeiture of $14,306,842. Bennett was found guilty of the charges on October 17, 2018, after a federal jury deliberated for fewer than five hours.

According to testimony at trial, Bennett made false statements to the bank to obtain a $750,000 line of credit, claiming she had a brokerage account with a net portfolio value of over $4 million. In reality, Bennett’s net portfolio value for that same account was only $35. The loan proceeds were used to pay off investors and her personal expenses, rather than for business operations.

U.S. Attorney Robert K. Hur praised the bravery of the victims who came forward to testify against Bennett, saying "Their courage in speaking out about their losses will hopefully serve as a warning to others who may be considering similar schemes."

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