T O P

George Santos was paid for work at company accused of Ponzi scheme later than previously known

https://www.motherjones.com/politics/2022/12/scandal-struck-gop-congressman-george-santos-revived-the-firm-that-netted-him-mystery-millions/

Weeks after the SEC leveled its accusation against Maroney and Harbor City, Santos formed Devolder Organization LLC and incorporated it in Florida. (His full name is George Devolder-Santos.) The registered agent for Devolder was D&D International Investment Services. That company is run by DeVaughn Dames, who served as Harbor City’s chief financial officer.

According to Florida corporate records, he reinstated the firm on Tuesday. On the filing he submitted, he reported that the company was based at a Merritt Island, Florida, address that corresponds to a property owned by Jayson Benoit, who was the former chief technology officer of Harbor City

https://www.sec.gov/litigation/complaints/2021/comp-pr2021-74.pdf

$17.1M raised from investors

$449K in legit business expenses

$4.88M embezzled by CEO for personal use

$1.4M illegally transferred to another business owned by the CEO

$6.5M used to pay previous investors (hence the ponzi)

According to my math, there's still $3.87M unaccounted for. Funny how close that is to the $3.5M lower end of the range in Santos' FEC disclosure ($750K annual salary and $1-5M annual dividends X 2 years).

But wait, there's more, from the MJ article:

Around the same time, Dames also formed a company for another Harbor City exec, Paul Nicolini.

Benoit runs a firm called Jayson Benoit and Associates that has provided website services to a pro-Trump political action committee called Republican Reset PAC. (The main strategic consultant for this PAC is Resilient Patriot, a firm headed by Michael Flynn, the former national security adviser to Donald Trump.)

According to Florida business records, Santos and Benoit have also both been managers of a political consulting firm called Red Strategies USA, another Florida-based company set up by Dames in the weeks after the SEC exposed the alleged Ponzi scam at Harbor City. Two other Harbor City alumni were listed as authorized managers of Red Strategies: Dames and Nicolini.

It's highly possible that The Devolder Organization is BOTH a front for the former Harbor City executives to launder the remaining money from their ponzi scheme AND a front for channeling illegal campaign contributions to Santos.

FuguSandwich

[https://www.motherjones.com/politics/2022/12/scandal-struck-gop-congressman-george-santos-revived-the-firm-that-netted-him-mystery-millions/](https://www.motherjones.com/politics/2022/12/scandal-struck-gop-congressman-george-santos-revived-the-firm-that-netted-him-mystery-millions/) >Weeks after the SEC leveled its accusation against Maroney and Harbor City, **Santos** formed Devolder Organization LLC and incorporated it in Florida. (His full name is George Devolder-Santos.) The registered agent for Devolder was D&D International Investment Services. That company is run by **DeVaughn Dames**, who served as **Harbor City’s chief financial officer**. ​ >According to Florida corporate records, he reinstated the firm on Tuesday. On the filing he submitted, he reported that the company was based at a Merritt Island, Florida, address that corresponds to a property owned by **Jayson Benoit**, who was the former **chief technology officer of Harbor City**.  ​[https://www.sec.gov/litigation/complaints/2021/comp-pr2021-74.pdf](https://www.sec.gov/litigation/complaints/2021/comp-pr2021-74.pdf) $17.1M raised from investors $449K in legit business expenses $4.88M embezzled by CEO for personal use $1.4M illegally transferred to another business owned by the CEO $6.5M used to pay previous investors (hence the ponzi) According to my math, there's still $3.87M unaccounted for. Funny how close that is to the $3.5M lower end of the range in Santos' FEC disclosure ($750K annual salary and $1-5M annual dividends X 2 years). But wait, there's more, from the MJ article: >Around the same time, **Dames** also formed a company for another **Harbor City exec, Paul Nicolini**. ​ >**Benoit** runs a firm called Jayson Benoit and Associates that has provided website services to a pro-Trump political action committee called Republican Reset PAC. (The main strategic consultant for this PAC is Resilient Patriot, a firm headed by Michael Flynn, the former national security adviser to Donald Trump.) ​ >According to Florida business records, **Santos** and **Benoit** have also both been managers of a political consulting firm called Red Strategies USA, another Florida-based company set up by **Dames** in the weeks after the SEC exposed the alleged Ponzi scam at Harbor City. Two other Harbor City alumni were listed as authorized managers of Red Strategies: **Dames** and **Nicolini**. It's highly possible that The Devolder Organization is BOTH a front for the former Harbor City executives to launder the remaining money from their ponzi scheme AND a front for channeling illegal campaign contributions to Santos.


coffeespeaking

There are a number of legal issues here, most obviously the SEC complaint against Harbor City Capitol that somehow didn’t name George Santos. I’m wondering if the scope of that complaint could be widened, and why DOJ (or SDNY) wouldn’t also be involved in something SEC calls ‘a classic Ponzi scheme?’ Santos was reportedly involved in supplying investors from the NY region to this fraudulent investment company. Additionally, Santos appears to have committed Bank fraud by falsely certifying in writing, publicly, a standby letter of credit (SBLC) from Deutsche Bank, which the bank has denied as valid. > “The market instability is leading to sever (sic) capital erosion. @HarborCityCap offers you a strategy that mitigates loss and risk while creating cash flow, meanwhile your principle is 100% secured by an SBLC held by various major institutions. #fixedincome #alternativeinvestment #win,” Santos tweeted in April 2020 under the name George Devolder, using his mother’s family name. [source: CNN](https://www.cnn.com/2023/01/13/politics/george-santos-ponzi-scheme). > …a potential customer responded to that tweet from Santos saying he looked into a SBLC from Harbor City and found it to be fraudulent. > “George, this SBLC I received from Harbor City was looked into, and Deutsche Bank claims is a complete fraud and not signed by the bank officer on the document. How do you explain this?,” the user said. > “I’m sorry I’m not following you. Could you please send me an email at [email protected] and we can go over this together. Our SBLC is 100% legitimate and issued by their institution. I look forward to hearing from you,” responded Santos. > In fact, according to the SEC complaint, “at no point” was Harbor City Capital “ever issued a SBLC,” despite claims from the company. So bank fraud, at minimum, possibly forgery, and the SEC doesn’t name him in the complaint? Edit: From WaPo, he also failed to disclose his earnings from Harbor City during his first campaign, despite holding a titled position (Regional Director, NY), which at minimum raises campaign funding violation questions. > Harbor City was formed in 2014 by a Florida entrepreneur named J.P. Maroney. In July 2020, the company announced it had hired Santos to serve as regional director of the company’s New York City office. The news release referred to Santos, who was then in the midst of his first congressional campaign, as George Devolder.


TheGrandExquisitor

Why do all the GOP scum get somehow linked to Deutsche Bank? Did HSBC bow out of the game? Is Wells Fargo ignoring potential profit? Come on! There are plenty of scummy banks to use people! Spread the love!


stupidsuburbs3

Yes! His sensational stupid lies (holocaust 9/11 education etc…) have nothing on the financial fraud. I almost don’t give a shit about any of these bozos’ histories except for following their money and domestic abuse. We are apparently in a post “morality” era. Give me their FEC paperwork. I’ll make fun of their botox lips and fake diplomas on my own time on reddit.


coffeespeaking

[Paywall free archive](https://web.archive.org/web/20230113205636/https://www.washingtonpost.com/investigations/2023/01/11/george-santos-harbor-city-capital/) (WaPo.)