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Nanban Ventures Fraud | What Happened?

Nanban Ventures is a Frisco, Texas-based investment group that advertised itself as a venture capital firm. It raised nearly $130 million from hundreds of investors with promises of investing in technology and real estate, but in reality, the SEC has accused Nanban of running a fraudulent scheme. According to the complaint filed in October 2023, the SEC alleged that Nanban was “overstating the profitability of the investments and paying investors and themselves millions of dollars in fake profits using, in substantial part, other investor funds.”

Further, the SEC alleged that Nanban “misused investor funds by using at least approximately $17.8 million of investor funds to make Ponzi payments—purported profit distributions to investors using, in substantial part, other investor funds.”

The Court denied Nanban’s motion to modify the asset freeze. It instead granted the SEC’s motion, and Nanban is now in receivership. For information regarding the receivership, please visit: www.nanbanreceivership.com. 

A Ponzi scheme is defined by the SEC as “an investment fraud that pays existing investors with funds collected from new investors.” Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money- instead, they use it to pay out supposed “profits” to those who invested earlier, and often keep substantial amounts for themselves.

With little or no legitimate earnings, Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors, or when large numbers of existing investors cash out, these schemes tend to collapse.” (SEC – Investor.gov)

Did You Invest with Nanban?

Nanban Venture Capital Fraud Investigation | Do I Have a Claim?