Allston man charged with running multi-million dollar Ponzi-like scheme
An Allston man was charged by state securities regulators with defrauding investors out of millions of dollars for personal benefit over the past decade. Raymond K. Montoya alleged used money from investors for personal expenses, such as credit card bills and luxury automobiles, said Massachusetts Secretary of State William F. Galvin.
“Montoya has used this money for his own personal benefit and that of his immediate family, to trade with limited success, and to make Ponzi-like payments to other investors,” Galvin’s office said in its complaint.
Montoya could not be reached for comment. His attorney did not return a call seeking comment.
Montoya allegedly raised $30 million from investors in the last three years alone, yet Galvin said he transferred less than $16 million to brokerage accounts. In addition to diverting funds, Galvin said Montoya made numerous bogus claims, such as exaggerating the size of his investment funds and inflating returns.
Galvin is seeking to bar Montoya from the securities business in Massachusetts and pay fine. He is also trying to any remaining money from Montoya and his business affiliates, including RMA Fund, Research Magnate Advisors, LLC and Resource Managed Assets, LLC.
“Our goal now is to immediately make sure he doesn’t get any more investors,” Galvin said.
The U.S. Securities and Exchange Commission declined to comment on whether it is investigating Montoya.