The SEC Says a Dallas Investor Screwed Over Her Church in a $2.3 Million Ponzi Scheme

Categories: Biz, The Courts

DelsaUThomas.jpg
D. Christopher Capital Management
Delsa U. Thomas
The way she tells it on her website, Delsa Thomas decided to launch her own investment firm after Citi Smith Barney, where she worked, merged with Morgan Stanley. She left in February 2011, taking a decade's worth of experience as a stockbroker and financial advisor to her new outfit, The D. Christopher Capital Management Group, and its flagship Solomon Fund.

The Securities and Exchange Commission gives a slightly different version of events. While at Morgan Stanley Smith Barney, Thomas had been steering clients toward certain high-yield investment vehicles that were, in the SEC's estimation, fraudulent. Investors lost a lot of money. Several sued. Thomas jumped ship before MSSB could fire her.

At D. Christopher Capital Management, Thomas promised large returns extremely quickly. She told a San Antonio real estate investor that she could turn his $1 million into $7.5 million in 35 business days. To a couple of Canadians, she promised a 10-percent return in 10 days. Another, from the European principality of Andorra, was promised his investment would double in 35 days.

She also convinced leaders at Irving's DFW New Beginnings Church, where Thomas is a member, to entrust her with $725,000.

Rather than deliver on her promises, however, Thomas "wasted the majority of the funds in a suspect transfer to a shadowy foreign company that may itself be carrying on a fraud, and spent the remaining monies in Ponzi payments and to cover personal expenses," according to a lawsuit filed against Thomas yesterday by the SEC.

The personal expenses included a $100,000 deposit into the bank account Thomas shares with her mother and $70,000 in payments to friends and relatives. All this from a hedge fund that was supposedly dedicated to "humanitarian causes."

The SEC claims Thomas violated multiple provisions of federal securities law, mainly by lying to investors about her company's investments and by using new investors' money to make good on her promises to old ones.

Reached this morning at her office in Irving, Thomas said she hasn't yet seen the lawsuit and declined to address specifics but said she hasn't done any of the illegal things the SEC says she has.

"I can emphatically deny all the allegations. ... All I will go on record to say is simply this: The SEC is simply just making up lies and that's the bottom line. Period."

But according to the agency, Thomas has squandered $1.8 million of the $2.3 million in investments controlled by DCCM. She did partially repay her church, though the $330,000 she handed over was less than half the original investment. Otherwise, the SEC says, the company has virtually no money, certainly not enough to repay its investors.


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14 comments
sugarbear483
sugarbear483

all right you people that feel the need to stick your noses in other people business , I am delsa's brother and can tell you with one hundred percent surety that the crap you are responding to is from a reporter who needed something to fill their blog with so they grab something posted by the feds and never once even toke the time check out any of their claims. I personally know that my mother did not receive any money from any deals or fraudulent actions. further more my sister is a ordained minister, a former marine who served this country with honors. she is a person the loves her lord and would never in a million years ever think about stealing cheating or doing harm to anyone

NOakCliff
NOakCliff

Monetary fraud like that is easy to prove, all you need are the bank records of cash transfers. She doesn't stand a chance, but probably knows the case will drag out for a long time while she suckers in more people who don't bother to check her out first. There's no shortage of people who dream they can get rich overnight, or in 35 business days.

ScottsMerkin
ScottsMerkin topcommenter

Yo the SEC doesn't make up lies sweetie.  Show us a case where when they accused someone of violating their laws to the extent they say you did and they didnt win.  When they throw the ponzi accusation out, you are done.

WylieH
WylieH

She is, however, a graduate of the "prestigious" University of Phoenix:

www.linkedin.com/pub/delsa-thomas/5/441/5a6

Montemalone
Montemalone topcommenter

How do stupid people get rich in the first place?

casiepierce
casiepierce

@Montemalone And how do people keep falling for investments that are too good to be true? If you can get sevenfold your original investment in just over a month, then you have to wonder....

animas
animas

10% luck+90% cronyism.

James080
James080

@Montemalone  

No one ever lost money betting on the gullibility and stupidity of the American investor. It's an often told tale, a promoter promises greedy investors an outrageously high rate of return, then seeds a small amount of "profits" to a few early investors to brag about, then fleeces everyone in ae long con game. You would think that after Madoff and Stanford, people would be more cautious, but apparently greedy people wear large blinders.

ScottsMerkin
ScottsMerkin topcommenter

@James080 @Montemalone but what I think monte is saying, I think the same tihng,  you have a million dollars, how can you be so dumb and gullible to just hand that million to someone who say the can turn that into 7 million in a month.


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