Social Media Influencers Father Indicted for Fraud and Conspiracy in $180M SEC Judgment Evasion

A corporate raider, his accountant, and a vaping company face federal charges for conspiracy, fraud.Photo byGiorgio TrovatoonUnsplash

Paul Bilzerian, a convicted corporate raider and father of social media influencer Daniel Bilzerian, has been indicted on federal charges of conspiracy, fraud, and evading a U.S. Securities and Exchange Commission judgment that has grown to more than $180 million.

The U.S. Attorney’s Office for the Central District of California announced the indictment on Friday, which also charges Bilzerian’s longtime accountant, Scott Rohleder, and Ignite International Brands Ltd., a cannabis company publicly represented as run by Daniel Bilzerian.

Paul Bilzerian, 74, who currently resides in St. Kitts and Nevis, was convicted of securities fraud in 1989. Since then, he has avoided paying the SEC civil judgment issued against him, according to the DOJ.

According to the indictment, Bilzerian used a complex network of shell companies to move millions of dollars in assets, allowing him to evade enforcement of the judgment while falsely claiming indigence in official financial disclosures.

Ignite International, which markets itself as a lifestyle and cannabis brand, was publicly fronted by Daniel Bilzerian, a well-known social media influencer and professional poker player.

While Daniel Bilzerian is not facing charges, the indictment alleges that his father, Paul Bilzerian, exercised substantial control over Ignite’s operations behind the scenes.

This included involvement in finances, marketing strategies, fundraising, and executive decisions, despite public efforts to conceal Paul Bilzerian's involvement with the company.

The indictment further alleges that Bilzerian and Rohleder defrauded Ignite’s investors by inflating the company’s revenues for the fourth quarter of 2020.

This involved falsely reporting unsold inventory as sales, which temporarily boosted Ignite’s stock price, leading to significant financial gains.

When the company’s auditor later challenged the sales figures, Bilzerian and Rohleder backdated additional false sales to a shell company controlled by Bilzerian.

The charges carry significant penalties if convicted. Each count of fraud or conspiracy could result in up to 20 years in federal prison, along with steep fines.

Notably, an indictment is a formal accusation of criminal conduct, and all defendants are presumed innocent until proven guilty in a court of law.