Death Doesn’t Stop the SEC

According to the SEC’s civil complaint filed in Miami, McLeod used the investors’ retirement savings to live a lavish lifestyle and enrich himself. That included yearly trips to the Super Bowl for himself and 40 friends. The agency said that it was through retirement benefits seminars he held around the country that McLeod was able to lure many of the active and retired federal employees. Although he promoted the security of the government bond fund, he never bought any bonds. Instead, he used the money to run the Ponzi scheme, using new investors’ money to pay earlier investors.

The SEC also accused the Federal Employee Benefits Group of providing investors with personalized retirement benefit analyses and offered the option of having F&S Asset Management manage their money. In addition to conventional investments offered through that firm, McLeod offered many investors guaranteed annual returns of 8 percent to 10 percent in a in a tax-free fund backed by government bonds.

The SEC is seeking unspecified restitution and civil fines against McLeod’s estate and the two firms.