SEC Charges Man in $114 Million Ponzi Who Promised To Help Driver Alertness

A Houston-area businessman promising to prevent auto accidents caused by drowsy driving has been charged by the Securities and Exchange Commission (SEC) with carrying out a $114 million Ponzi scheme.

The sign of a scheme: promises of high returns

The SEC charged Frederick Alan Voight of Richmond, Texas with defrauding more than 300 investors. Voight most recently recently raised $13.8 million on claims the money would fund a startup, InterCore Inc., to launch a “Driver Alertness Detection System,” or DADS.

In what is almost a sure sign of a scheme,...