U.S. Authorities Arrest Next Level Founder for $50M Investor Fraud Scheme
Paul Regan, founder and CEO of Next Level, a commodities trading fund, and operator of Yield Wealth, has been arrested in the U.S. and charged with securities and wire fraud for allegedly stealing over $50 million from 330 investors.
Next Level promised double-digit returns by financing Colombian metals exports and selling the metals at a profit, while Yield Wealth presented itself as a healthcare investment fund promising steady returns. Both funds assured investors that their investments were fully insured, claims which have been refuted by the Securities and Exchange Commission (SEC) and detailed as materially false in the indictment.
Funds were misappropriated, used to pay unrelated third parties, and employed in a Ponzi-like scheme where new investors' money was used to pay returns to older investors. The operation collapsed in late 2024 following investigative reports and regulatory scrutiny, leaving significant investor losses. The SEC has also revealed that a substantial portion of funds was transferred abroad, primarily to companies in China, and was used for unrelated business expenses including payments to law firms and insurance brokers involved in securities promotion.
Regan’s previous legal history includes being barred by FINRA and a prior conviction for organized fraud, adding regulatory and reputational concerns to the ongoing litigation. Furthermore, Colombian surety bond provider Afiancol has filed a lawsuit against Regan and Next Level for alleged forgery and deceptive trade practices related to expired surety bonds tied to the investments. The case underlines critical compliance and regulatory enforcement challenges surrounding claims of insured, high-yield investment products in the U.S. and the need for thorough due diligence and transparency in commodities and healthcare-related investment offerings.
Here is a link to one of his pre-arrest articles: