Paul Regan, a former securities industry professional barred for life in 2004, has pleaded guilty to orchestrating a $50 million Ponzi scheme through his firms Next Level Holdings and Yield Wealth, federal prosecutors announced. The scheme, which targeted more than 300 investors, involved falsely promising high returns through investments in gold trading and discounted health-insurance policies that were purportedly backed by major insurance consortiums, including Lloyd’s of London.

Regan, 49, who had previously pleaded guilty to organized fraud in Florida in 2017, misled clients with fabricated claims about his investment strategies and professional credentials. According to prosecutors, Regan and his associates did not make meaningful investments but instead used funds from new investors to pay returns to earlier ones. Investigations revealed that many insurance documents were forged as part of the operation.

Court filings and audio recordings reviewed by investigators depict Regan as a persuasive and charismatic figure who combined humor, religious references, and emotional appeals to secure investments. During recorded calls, he reassured clients of low-risk returns, despite internally acknowledging the ignorance and lack of sophistication of many sales agents working for him. These agents, some of whom had minimal financial or securities experience, were key to soliciting investments, often receiving commissions as high as 15 percent.

Many agents recruited by Regan were heavily in debt and motivated by the promise of significant earnings. Regan and his sales chief, Jonathan Guzman, reportedly instructed agents that they did not need securities licenses to sell the investment offerings, a potential violation of federal law. Guzman denies wrongdoing, asserting he merely relayed Regan’s directives. The sales team also reportedly used misleading tactics, including financial incentives for agents who engaged prospective clients without disclosing their role in the scheme.

Among those involved was Anthony Liddle, a former securities professional barred by the Financial Industry Regulatory Authority and awaiting trial on unrelated fraud charges. Regan recruited Liddle as a head of sales despite his barred status, offering a lucrative compensation package. Liddle later pleaded guilty to wire fraud and money laundering and is currently serving an eight-year sentence. He provided evidence about Regan’s operations to federal authorities in early 2023.

Regan's operation included elaborate incentives and events for sales personnel, such as a three-day retreat in Medellín, Colombia, featuring lavish parties and presentations at a ranch outside the city. These gatherings served to motivate agents and foster a sense of community. At the same time, internal communications revealed Regan’s demand for strict loyalty and harsh responses toward perceived disloyalty.

Regan pleaded guilty in March 2026 to three felony fraud charges. Following a series of exposés that raised questions about the unusually high returns his firms advertised, regulatory authorities began investigations by the end of 2024. The firms dismantled their public-facing materials and ceased operations in the months that followed.

Federal prosecutors revealed that by late 2024, Regan had misappropriated at least $50 million of the $63 million raised from investors. His sentencing is scheduled for August 2026. While his plea agreement requires full restitution, the extent to which defrauded investors will recover their funds remains uncertain. Regan’s attorneys did not comment on the case when contacted.