Orlando fraudster Chris Delgado sued by feds over Ponzi scheme
Convicted Orlando fraudster Christopher Delgado, already awaiting sentencing for running a $250 million Ponzi scheme, stole far more than he admitted in court and used his investors’ money to buy a yacht, take private flights and even pay his children’s school tuition bills and his pets’ grooming tabs, two new lawsuits allege.
Delgado, 34, pleaded guilty June 30 to fraud charges and is scheduled to be sentenced Oct. 21. He admitted to using his investors’ stolen money to buy a seven-bedroom Isleworth mansion, two Lamborghinis and a diamond-encrusted ring displaying his company’s logo, among many other properties and luxury items.
He has been confined to the Isleworth estate since his arrest in February.
The new lawsuits allege Delgado and his cryptocurrency firm, Goliath Ventures, stole nearly $200 million more and offer never-before-mentioned details about how he allegedly spent $51 million of that on personal expenses — including on a $2.9 million yacht.
His former cryptocurrency firm, Goliath Ventures, is now in bankruptcy, and a court-appointed attorney is overseeing its finances and trying to recover assets to help pay back the company’s victims, which prosecutors say number more than 1,000.
Delgado and Goliath were both sued Aug. 11 in two lawsuits filed separately by the U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission in federal court in Orlando.
The suits allege Delgado’s Ponzi scheme violated federal laws and regulations related to financial securities and derivatives, which the two agencies respectively regulate, and seek to have a judge prevent Delgado and Goliath from repeating those actions or taking part in a range of other financial activities in the future.
The suits request that Delgado and Goliath pay back any benefits from the illegal activity, including salaries, commissions, loans, fees, revenues and trading profits, as well as pay a civil penalty and restitution.
Delgado did not respond to a request for comment Wednesday and his attorney, Sean Shecter, issued a statement that did not mention the new lawsuits. Michael Budwick, the court-appointed Miami attorney now in control of Goliath, declined to comment.
While court documents in Delgado’s criminal case have detailed the fancy homes, exotic cars and luxury jewelry he purchased with the stolen funds, the new lawsuits offer the most comprehensive breakdown yet of exactly how much of the funds were spent on what.
As part of his plea deal, Delgado admitted to stealing at least $250 million from at least 1,000 investors. But federal prosecutors said he stole “much more” and that they have identified 1,500 victims, both in the United States and in 10 other countries including Brazil, Germany, Australia and the United Arab Emirates, according to a recent court filing in Delgado’s criminal case.
The new SEC lawsuit alleges the con raised at $425 million from more than 1,300 investors and that Delgado used $51 million for personal use, including: $17.5 million on real estate; $4 million for luxury vehicles; $7.5 million for luxury retail purchases; $4 million on entertainment, including night clubs, restaurants, sporting events, and related travel; and $2.9 million on the yacht.
In his criminal case, Delgado admitted to using the stolen funds to buy eight Orlando-area properties, 11 luxury vehicles, 30 watches, 29 pieces of jewelry and cufflinks, 57 wallets and bags, sports memorabilia and a collection of wine and spirits.
Delgado used the stolen funds to maintain the façade that Goliath was a legitimate business and lure more investors, spending more than $12.5 million on private flights and about $21.5 million on Goliath promotional events, holiday parties, and related travel expenses, including at a private members club in Orlando, according to the SEC suit.
“Delgado used these lavish events, which investors attended, to promote the purported success of Goliath’s business,” the suit said.
He also spent approximately $3 million to acquire and renovate a luxury office space for the company and $12 million to pay credit card bills for both Goliath corporate credit cards and his own personal credit cards.
The suit said Delgado donated about $4 million of investor funds to charitable organizations to promote Goliath. The Orlando Sentinel has reported he made many such donations including $50,000 to Apopka High School; $250,000 to a drug-abuse prevention nonprofit; and an unknown amount of money to the Orlando Magic Youth Foundation, among other groups.
The new lawsuit from the Commodity Futures Trading Commission also alleged Delgado spent over $400,000 of the funds on school tuition, soccer expenses and educational tutoring for his children as well as pet grooming.
