Is George Santos In Trouble Again? Congressman Allegedly Raised Funds For Company Deemed Ponzi Scheme: Report

Rep. George Santos (R-NY), who has been embroiled in controversy implicit investigations into his run finances and blatantly lying on his resume, whitethorn person courted a caller controversy.

What Happened: Santos persuaded a affluent idiosyncratic to perpetrate to a six-figure concern successful Florida-based Harbor City Capital, which was placed successful receivership by the SEC a twelvemonth aboriginal connected the grounds of it being a Ponzi scheme, the Wall Street Journal reported. The typical reportedly convinced the capitalist by saying helium personally raised astir $100 cardinal for the institution and had also invested his ain family’s wealth successful the company.

Receivership is simply a indebtedness restructuring process nether which a receiver is appointed to cod and merchantability a company’s assets for settling fiscal claims of secured creditors. Harbor City’s receiver Katherine Donlon reportedly said Santos was paid for the enactment helium did for the company. Santos’ resume indicates helium worked for Harbor Capital successful 2020.

People who rise wealth connected behalf of clients successful instrumentality for a committee request to beryllium brokers and should beryllium moving for a licensed brokerage, the Journal said. The SEC, according to the report, has antecedently punished those who bash the enactment of a broker without acquiring licenses.

In Santos’ case, helium isn’t registered arsenic a broker with the Financial Industry Regulatory Authority, the study said. It besides noted that tiny businesses oregon concern managers sometimes employment finders for raising wealth and they are paid for recruiting investors.

Santos, successful his financial-disclosure forms meant to beryllium filed by national candidates moving for office, did not see immoderate income from Harbor City.

While Harbor City said successful a 2020 merchandise that Santos would service arsenic determination manager of its New York City office, his occupation was to enactment successful investors for the company’s fiscal offering, the study said. The institution was offering what it called secured bonds, assuring investors yields arsenic precocious arsenic 20% on with the information of principal, it added.

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Where Does This Leave McCarthy: The calls for Santos to resign are increasing louder each day, not lone Democrats, but his ain enactment members from New York person sought his resignation, according to Axios.

Santos, however, has stood his crushed and has refused to measurement down, reasoning that helium was elected to service the radical and not the enactment oregon politicians.

Amid this furor, newly-elected House Speaker Kevin McCarthy (R-CA) has thrown his value down Santos. The talker reportedly suggested helium volition not articulation the chorus demanding Santos resign, and that the congressman volition inactive person committee assignments. Incidentally, Santos’ ballot mattered for McCarthy arsenic the Republicans had only a constrictive bulk successful the House. McCarthy was capable to unafraid triumph lone connected the 15th ballot, and the last ballot tally of 216-212 suggests 5 of his ain enactment members withheld their votes.

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