SEC Defends Use of Email to Serve Alleged Ponzi Fraudster Abroad

The US Securities and Exchange Commission wants to convince the Third Circuit, a federal appeals court, that it was appropriate to serve a lawsuit via email on an alleged Ponzi scheme fraudster living overseas, after exhaustive efforts concluded his foreign address was unknown.

The commission’s suit, filed in March 2020, alleges businessman Thomas Megas and estate lawyer Todd Lahr sold more than $1.4 million in unregistered securities as part of a multi-year Ponzi scheme involving traditional mining investments and spent some of the proceeds on personal expenses such as college tuition, car maintenance, and ski lift tickets.

Lahr agreed ...