Investor Alert: SEC Complaint Alleges Ponzi Scheme by Henry Paul Regan, Jr. — May Recover Investor Losses

If you invested in promissory notes, partnership interests, or other offerings tied to Henry Paul Regan, Jr. through your broker, this alert is for you. A recent SEC complaint (filed September 4, 2025) alleges that Regan ran a multi‐million-dollar investment fraud—which, in many respects, allegedly functioned as a Ponzi scheme. Goodman & Nekvasil, P.A. is investigating these claims and can help you understand your rights.

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What the SEC Alleges: Key Details of Regan’s Scheme

According to the Securities and Exchange Commission in SEC v. Henry Paul Regan, Jr. (Southern District of New York), the allegations include: SEC

• Amount defrauded & number of investors: More than $63 million was raised from hundreds of U.S.‐based investors.

• Timeframe: From about September 2022 through November 2024 the conduct took place.

• Investment products offered:
  • Promissory notes and partnership interests in related companies: Next Level Holdings LLC, Yield Capital Management, Inc., Yield Wealth Ltd. 
  • These offerings promised high annual returns—up to 15.5%—over 3- to 10-year terms.

• Purported underlying business activities: Regan claimed investor funds would be used for:

  1. Buying and selling unrefined Colombian-sourced precious metals.

  2. Investing in health insurance policies issued under the Affordable Care Act (ACA), producing monthly payments supposedly guaranteed by the federal government.

• What the SEC says actually happened: Instead of using funds for those business purposes, Regan allegedly:
  • Made “Ponzi-like payments” to earlier investors (i.e. using money from new investors to pay returns or redemptions due to old investors). 
  • Paid large commissions to his network of salespeople. 
  • Wired large sums to dozens of international companies, many outside the U.S. 
  • Misrepresented or falsified insurance policies or surety bonds that supposedly guaranteed principal and interest. Some of the documents related to “insurance” were allegedly forged or invalid.

• Collapse of investor communications & operations: As media scrutiny increased in 2024, firms and brokers cut ties with Regan’s companies. By November 2024, Regan allegedly stopped paying investors and ceased communications.

• Legal claims: Regan is charged with violating Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5, among others. The SEC seeks injunctions, disgorgement, prejudgment interest, and penalties. SEC

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Why These Allegations Match a Classic Ponzi Scheme

Based on the complaint, Regan’s operation exhibits many hallmarks of a Ponzi scheme:

1. Guaranteed or unusually high returns (12-15.5%) with little transparency.

2. Use of new investors’ money to pay returns to earlier investors rather than actual profits derived from the purported business ventures.

3. False or misleading claims — especially about insurance/surety, underlying business operations (e.g. precious metals trading, ACA-insured policies) which were either exaggerated or misused.

4. Lack of liquidity / collapse — once scrutiny increased, payments stopped and communications ceased.

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What This Means If You Are an Investor

• If you purchased offerings connected to Regan (via your broker, financial advisor, or sales agents) and those investments are part of the SEC complaint, you may have a legal claim.

• Losses from these alleged misrepresentations, failure to disclose risks, or fraudulent acts may be recoverable through securities arbitration.

• It is especially important to preserve any documentation you have: offering materials, promissory note agreements, insurance or bond documents, statements, emails, correspondence from your broker and from Regan’s entities.

St. Petersburg, Florida law firm Goodman & Nekvasil, P.A., has a national practice representing victimized investors.  The  firm continues to investigate brokerage firms that placed elderly retirees and other conservative investors in unsuitable investments.

Goodman & Nekvasil, P.A., has filed numerous cases against brokerage firms selling high-risk investments and has recovered more than $500 million dollars on behalf of victimized investors.

We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee.

If you incurred losses on your investment and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from FINRA on 9/18/25. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.