The Securities and Exchange Commission (SEC) has charged a podcaster with orchestrating an $11 million Ponzi scheme. Michael Avenatti, the podcast host, allegedly solicited investments from his listeners on the show “Cash Flow King,” and promised them large returns in short periods of time. He did not deliver the returns and is accused of using new investor’s funds to pay existing investors, which is typical of a Ponzi scheme. If found guilty, Avenatti could serving jail time, face hefty fines, and have to return the money he earned from the fraudulent scheme.
