SEC v. Kenneth W. Alexander II and others (ponzi schemes, 2025)

Alleged — pending

These are allegations. SEC has filed an action; nothing in it has been proven, and the respondents have not been found liable. Everything described on this page is what the regulator alleges, not what a court has found. See our editorial policy.

✓ Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In May 2025 the SEC charged Kenneth W. Alexander II, Robert D. Welsh and 1 other. The complaint alleges a Ponzi scheme raising at least $91 million from more than 200 investors through a trust promising monthly returns of 3% to 6%, with more than $46 million routed by Conner and millions taken for personal use. The docket shows agreed judgments against Welsh and Conner in June 2026 and further judgments in September 2026 whose defendants we could not identify.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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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 Securities and Exchange Commission announced this matter on May 2, 2025 as release LR-26301. The complaint alleges a Ponzi scheme raising at least $91 million from more than 200 investors through a trust promising monthly returns of 3% to 6%, with more than $46 million routed by Conner and millions taken for personal use.

This library tags the matter as a Ponzi scheme because the document describes returns to earlier investors paid from later investors' money, as alleged or found. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The claims remain allegations except where a court order, described below, has resolved them.

Partial outcome, checked on 2026-10-04. The docket in SEC v. Alexander (E.D. Tex. 4:25-cv-00446) shows agreed judgments as to two of the three named defendants, Robert D. Welsh and Caedrynn E. Conner, signed on June 11, 2026. It also reports that a court-ordered mediation ended in settlement in late August 2026, subject to SEC approval, and shows a Rule 54(b) judgment, a default judgment and further judgments entered between September 23 and 28, 2026. The entries do not say which defendant each of those relates to, and their text was not available to us, so we cannot tell whether the claims against Kenneth W. Alexander II were resolved or on what terms. The record therefore stays filed and no amounts are stored.

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. 2025-05-02 Litigation release published
2. 2026-06-11 Agreed judgments entered as to Robert D. Welsh and Caedrynn E. Conner

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
• Docket, SEC v. Alexander (E.D. Tex. 4:25-cv-00446), via CourtListener

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.

Related actions

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

Record added September 10, 2026. If this matter has since resolved, been withdrawn or been dismissed, we want to know: submit a correction.