The U.S. District Court for the Central District of California approved a claims procedure on June 13th for victims of the Profit Connect Ponzi scheme. This decision allows investors, defrauded of over $20 million, to begin filing for compensation through the court-appointed Receiver.
Kristina M. W. Hillman, the court-appointed Receiver, has started sending postcards and emails to all known investors. These communications provide instructions on how to file a claim. Victims have a 90-day window to submit their claims, with the deadline set for September 11th. Submissions can be made either through a dedicated website managed by claims administrator Kurtzman Carson Consultants or by mailing physical paperwork.
Profit Connect, led by Jeremy Johnson, operated as a multi-level marketing program. It falsely promised high returns from cryptocurrency mining and forex trading. The Securities and Exchange Commission (SEC) initiated enforcement action against Johnson and others in 2022, securing an asset freeze and the establishment of the receivership. The scheme defrauded thousands of investors before its collapse.
Once the September 11th deadline passes, the Receiver will begin reviewing each submitted claim. Valid claims will receive approval, while those that do not meet the criteria will be rejected. No specific timeline exists for this review process. After claims are sorted, the Receiver plans to file a proposed distribution plan outlining how recovered funds will be paid to victims.
Receiverships are complex and often lengthy processes. Victims should manage expectations regarding the speed of restitution. The only firm deadline in the immediate future remains the 90-day window for claim submissions. However, the Receiver secured court permission in late December 2024 to distribute interim payments. This allowed the first movement of funds towards those harmed by the scheme.
The recovery of funds depends on the liquidation of assets seized from the Profit Connect operators. The final amount each victim receives will depend on the total funds recovered and the number of approved claims.
For specific guidance on submitting a claim, victims should contact the Profit Connect Receiver directly or consult their personal attorney. The official court case number for the receivership is 8:22-cv-00160-JVS-KES.