The Investor’s Watchdog

The Investor's Watchdog

Carol Ann Pedersen of Long Beach to Plead Guilty to Operating A Multi-Million Dollar Ponzi Scheme

Friday, March 22, 2019

Carol Ann Pedersen of Long Beach, California is facing criminal and civil charges after perpetrating a decades-long, multi-million-dollar Ponzi scheme and misappropriating investor money to pay for personal expenses.

The Securities and Exchange Commission recently filed a complaint against Pederson, a former Certified Public Accountant, for raising at least $29 million from at least 25 investors. According to the SEC Complaint, Pedersen was never registered as an investment adviser. View the SEC Complaint against Pedersen.

Pedersen offered securities to California investors in the form of limited partnership interests in a pooled investment vehicle called the “CA Pederson Client Pool Investment Fund, LP.” She falsely promised to invest the money in securities which were “guaranteed” and would yield returns of over 8%. Pedersen was to receive a 0.5% annual fee for her efforts. Instead, however, she used investors’ money as a piggy bank, allegedly using the funds to pay for her personal expenses, including credit card bills, real estate, and to fund a family trust account. To conceal her scheme, Pedersen provided investors with fabricated account statements which falsely showed monetary gains.

Previously, in 2017, the California Department of Business Oversight issued a Desist and Refrain order to Pedersen for misleading investors and selling the securities through untrue statements and omissions. On July 14, 2017, Pedersen’s primary accounts were frozen pursuant to a temporary restraining order issued by the Los Angeles Superior Court.

Oftentimes, unregistered investment advisers, such as Pedersen, recruit the assistance of reputable financial firms to lend credibility to their schemes. Financial advisors and brokerage firms can be held liable for losses if they aided the misconduct i.e., Pedersen’s scheme. Since 1998, the experienced attorneys at ChapmanAlbin have been fighting for victims of investment fraud and broker misconduct.  If you lost money investing with Carol Ann Pederson, call us today at 1-877-410-8172 for a free consultation.

Author: John S. Chapman

John S. Chapman is a Principal at ChapmanAlbin, the investor rights law firm. He has spent over twenty years fighting for investors who have been harmed due to broker misconduct. John and the attorneys at ChapmanAlbin have helped recover millions in lost investor savings, and continue to fight for rights of investors across the country.

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