WSJ: Santos raised money for company SEC alleges is a Ponzi scheme

WSJ: Santos raised money for company SEC alleges is a Ponzi scheme

Rep. George Santos (RN.Y.), who has faced controversy since it was discovered that he made false statements about large parts of his personal and work background, once raised money for a company that later said the Commission of Securities and Exchange Commission (SEC) was a Ponzi scheme, The Wall Street Journal reported.

The newspaper reported Saturday that Santos convinced at least one person to invest a six-figure sum in a Florida-based company called Harbor City Capital. People familiar with the matter told the Journal that Santos was hired in 2020 to raise money for the company and brought in at least one major investment.

One of the people said Santos reassured the investor when the investment did not deliver the promised returns by telling him he made $100 million and invested his family’s money in the company.

The SEC accused Harbor City Capital of being a Ponzi scheme in 2021 in a civil suit.

The report is the latest in a string of controversies surrounding the embattled congressman. Many Democrats and at least seven House Republicans have called on him to resign in light of reports that he misled voters about key details of his record as a candidate.

The head of the Nassau County Republican Party has also called on Santos to resign.

The cases include claiming to have worked at Goldman Sachs and Citigroup, claiming to have graduated from Baruch College, and claiming to be Jewish, none of which are true.

Santos has admitted that he “embellished” his CV, but has denied lying. He has been adamant that he will not resign from his post despite calls for him to resign.

The newspaper reported that Santos has previously denied wrongdoing in his dealings with Harbor City Capital and said he was not listed as a defendant in the SEC’s case against the company.

The SEC declined to comment to the Journal on its report. The Hill has reached out to Santos’ office for comment.

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The newspaper reported that Santos did not disclose any income he received from Harbor City on the financial disclosure forms that federal candidates are required to fill out.

Santos is facing investigations by federal authorities into possible campaign finance violations and Nassau County, NY, into his fabrications.

Brazil is also said to have reopened a criminal investigation into Santos to look into allegations that he used a stolen checkbook and a false name to buy almost $700 worth of items at a clothing store in 2008.

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