The Securities and Exchange Commission (SEC) accused Florida-based Titanium Capital LLC and its founder, Henry Abdo, of running a Ponzi scheme that raised at least $5.3 million from more than 160 retail investors in the United States and abroad; it also accused Titanium of recruiting investors on behalf of Carol Ann Barsh.。

According to the SEC, since 2014, Abdo and Titanium falsely claimed that Titanium invested investors' money in a "multi-currency investment fund" backed by a proprietary currency exchange, and that the investment had never experienced a monthly loss and had generated substantial returns for investors, including a five-year investment of up to 102% compound interest.。In recruiting investors, Titanium and Abdo allegedly claimed that Titanium was registered with the SEC and was under scrutiny by the commission.。

However, according to the SEC's complaint, neither Titanium nor the offering or sale of its securities was registered with the SEC and there is no evidence of the existence of a proprietary currency exchange.。According to the complaint, Abdo and Titanium used almost all of their investors' funds to make Ponzi scheme-style payments to early investors, to make payments to related parties, and to divert funds for personal purposes such as jewelry and casino spending.。

The SEC also accused Barsh of promoting and selling Titanium's securities to investors without proper registration or without obtaining a registration waiver.。

The SEC filed a lawsuit in U.S. District Court for the Southern District of Florida alleging that Titanium and Abdo violated the anti-fraud provisions of the federal securities laws and, along with Barsh, violated the registration provisions of the federal securities laws.。The complaint seeks injunctive relief, forfeiture of property and civil penalties against Titanium, Abdo and Barsh, and a permanent ban on participation in future securities offerings, barring Abdo from acting as an executive and director.。

The complaint also names Abdo's relative, Elias Halim Abdo, and Abdo's wife, Ganna Migulina, as relief defendants, and demands that they surrender their fines.。