A $28 million Ponzi scheme targeting over 1,000 investors has been uncovered in Maryland, according to a complaint filed by the Commodity Futures Trading Commission (CFTC). The CFTC alleges that Dennis Jali, a South African citizen and former Maryland resident, orchestrated the fraudulent operation through pooled trading accounts.
The scheme, known as the “1st Million Pool,” operated from 2017 to 2020 and solicited funds from the public to trade foreign currency (forex) and digital assets like Bitcoin. Arley Ray Johnson and John Frimpong, both of Maryland, are also named in the complaint for their roles in fraudulently soliciting funds on behalf of 1st Million LLC, Smart Partners LLC, and Access to Assets LLC.
Investors were falsely promised that their funds would be held in trust or escrow, used for trading, and fully returned at the end of the participation term, secured by so-called “secure contracts.” The CFTC alleges the defendants misappropriated at least $7 million of the pooled funds for personal expenses, including luxury vehicles, travel, and business costs.
Federal prosecutors have also indicted Jali on charges of conspiracy, wire fraud, securities fraud, and money laundering. Jali fled the United States in May 2019 but was later arrested in South Africa. The indictment was unsealed on August 28, 2020, coinciding with Frimpong’s initial court appearance.
Authorities say the defendants specifically targeted members of church communities, promoting the 1st Million Pool as a path to financial freedom and charitable giving. They are accused of lying about their trading experience and the potential for profit, promising returns of up to 30% per month and falsely claiming a history of successful trades. Jali reportedly boasted of returns exceeding 1700% to some investors and claimed to have generated 400% returns in just six weeks.
The CFTC claims at least $18 million of investor funds were used to make Ponzi scheme-like payments, creating the illusion of profitability. The defendants also allegedly failed to register with the CFTC as required.
The CFTC is seeking full restitution for defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, and permanent trading bans against all defendants. The investigation was conducted in cooperation with the U.S. Attorney’s Office for the District of Maryland and the Securities and Exchange Commission.
Source: CFTC.gov
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