SEC v. Damon Elliott, et al. (ponzi schemes, 2020)

Judgment entered

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After a September 2021 partial consent judgment, the District of Massachusetts ordered Damon Elliott on April 8, 2022 to pay $6.35 million in disgorgement and interest and a $97,523 penalty, and ordered his firm Piptastic a $5.29 million penalty. The SEC said the judgments against relief defendants would conclude the case.

The record

What was ordered

Civil penalty

$5.4m

Disgorgement

$6.3m

Prejudgment interest

—

Total relief

$11.7m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The SEC announced the complaint on May 6, 2020 (LR-24813) in the District of Massachusetts. It alleges that from January 2016 to May 2019 Elliott spent investor money on himself and others, told those seeking redemptions that funds were safe, and sent fictitious statements.

The record named the defendants as "Damon Elliott, et al."; the four parties are now listed.

This library tags the matter as ponzi schemes because the document describes it as a scheme paying earlier investors with later investors' money. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

Outcome. Litigation release 25369 (April 15, 2022) reports that Elliott consented on September 15, 2021 to an injunction and a bar on unregistered offerings, with the financial remedies left to the court; on April 8, 2022 the court ordered $6,348,314 in disgorgement and interest and a $97,523 penalty against him, and an amended judgment against Piptastic for $5,937,335 in disgorgement and interest (joint with Elliott) and a $5,289,028 penalty. Relief defendants Sharon Elliott, Paul Rose and DSE Retail Limited were separately ordered to pay amounts the release lists. The stored figures cover Elliott and Piptastic only, counting the joint amount once. Elliott did not admit or deny the allegations.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Ponzi schemes — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2020-05-06 Litigation release published
2. 2022-04-08 Court orders financial remedies against Elliott and amended judgment against Piptastic

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release 25369 (final judgments)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.