A federal judge has rejected Pedro Fort Berbel's attempt to dodge fraud charges, clearing the way for a jury trial scheduled for September 17th.

Fort, a Spanish citizen, stands accused of running three interconnected Ponzi schemes—Fort Ad Pays, The Business Shop, and MLM Shop—that bilked investors out of $38 million. The SEC filed charges against him in late 2017, but in December, Fort filed a Motion to Dismiss with four arguments he hoped would kill the case entirely.

None of them stuck.

Fort's first line of defense was jurisdictional. He argued the SEC had no business prosecuting him because the transactions occurred outside the United States between foreign investors only. The court eviscerated that claim. The SEC alleged that investors purchased Ad Packs by wiring money to seven of Fort's U.S.-based bank accounts, and at least some of those investors were American. That's enough to establish domestic jurisdiction. The law applies.

His second argument—that the SEC failed to show he'd likely commit future securities violations—collapsed under the weight of precedent. Courts in this district have consistently ruled that past securities violations create an inference that future ones may follow.

Fort then claimed the SEC's complaint was a "shotgun pleading," the legal equivalent of throwing spaghetti at a wall to see what sticks. The complaint was too vague and failed to clearly connect specific allegations to specific claims. Judge Moreno rejected this too. The SEC's general allegations were sufficiently clear to support each count.

His final argument was almost absurd: Fort insisted he couldn't be personally liable because he was acting as an officer and director of Fort Marketing Group, a company he wholly owned. The company, not him personally, spent the investor money. The court wasn't buying it.

Fort misappropriated millions from company accounts to fund his personal lifestyle. Fort Marketing Group didn't purchase a house in Florida, charter private jets, buy automobiles, pay for cosmetic surgery, or cover gambling debts. Pedro Fort did. Those were personal expenditures funded by stolen investor money, which means he's personally liable.

Judge Moreno denied the Motion to Dismiss in its entirety.

The case now moves into mediation, with a resolution deadline set for July 20th. A mediator was appointed March 22nd. But if the parties can't reach a settlement, the jury trial is locked in for September 17th, 2018. Fort will have to answer to twelve jurors for the $38 million scheme.

🤖 Quick Answer

Who is Pedro Fort Berbel and what are the charges against him?
Pedro Fort Berbel, a Spanish citizen, is accused of operating three interconnected Ponzi schemes: Fort Ad Pays, The Business Shop, and MLM Shop. These fraudulent schemes defrauded investors of approximately $38 million. The SEC filed charges against him in late 2017 for conducting unauthorized securities transactions.

What was the outcome of Fort's Motion to Dismiss?
A federal judge rejected all four arguments presented in Pedro Fort's Motion to Dismiss filed in December. The rejection cleared the path for prosecution to proceed, eliminating Fort's attempts to have the fraud charges dismissed entirely before trial.

When is the jury trial scheduled?
The jury trial for Pedro Fort Berbel is scheduled for September 17th. The trial will determine his guilt or innocence regarding the fraud charges related to the three Ponzi schemes that allegedly

🔗 Related Articles

- Bulgaria drops Nexo investigation, no evidence of fraud
- Dawn Wright-Olivares pleads guilty to fraud
- Profit Connect shut down by SEC, $12 million Ponzi scheme
- Swapnex Review: Russian Boris CEO crypto Ponzi scheme
- Tectum Review: Failed blockchain co. launches 300% Ponzi