Radio Host and Family Office Raised $50 Million for an Alleged Ponzi Scheme. Now They've Settled SEC Charges as Unregistered Sellers

Published Oct. 12, 2026. Case statuses are current as of that date. This article is based only on documents published by the U.S. Securities and Exchange Commission.

Ponzi schemes rarely grow by themselves. They need salespeople. In a pair of settled cases, the Securities and Exchange Commission has gone after the sellers it says raised most of the money for an alleged $56 million South Florida real estate Ponzi scheme.

On June 23, 2026, the SEC filed settled actions against Sanders Family Office, LLC and its principal, Margaret Sanders, in federal court in Texas, and against Francisco J. Herrera in federal court in Florida [1][2][3].

Important: The SEC's cases against Sanders and Herrera are about selling without being registered as brokers. The SEC does not charge them with fraud. They agreed to settle without admitting the allegations, and the judgments are subject to court approval [1].

The underlying scheme

The SEC says the offering was orchestrated by Wells Real Estate Investment, LLC, its owner Janalie C. Bingham, and her husband, Jean Joseph. It raised at least $56 million from about 660 investors nationwide through promissory notes [1].

The SEC charged Wells Real Estate, Bingham and Joseph on Aug. 12, 2024, with operating an unregistered fraudulent offering and Ponzi scheme, and obtained a court-appointed receiver who is working to recover money for investors. On Dec. 3 and Dec. 5, 2024, the court entered final consent judgments against Joseph and Bingham, respectively, imposing injunctions, officer and director bars, disgorgement with interest and civil penalties [1].

According to the SEC, Joseph and Bingham were also charged in a parallel criminal case, United States v. Jean Joseph, et al., No. 1:25-cr-20483-JEM (S.D. Fla.), and both have pleaded guilty [1].

The sellers

Sanders Family Office and Margaret Sanders. From August 2020 to March 2023, the SEC alleges, they solicited and raised about $40 million from about 600 investors for Wells Real Estate, directly and through a team of sales agents, and earned transaction-based commissions of at least $2.97 million, without being registered as broker-dealers or associated with one [1].

Francisco J. Herrera. From at least March 2021 through November 2022, the SEC alleges, Herrera personally and through a team of agents he managed raised about $10 million from about 190 investors, promoting the notes on the internet and on his radio program, and received at least $488,244 in transaction-based commissions [1].

The SEC says the Wells offering itself was not registered and did not qualify for an exemption [3].

The settlements

Defendant	Proposed terms (subject to court approval)
Sanders Family Office, LLC and Margaret Sanders	Injunctions against violating Securities Act Sections 5(a) and 5(c) and Exchange Act Section 15(a)(1); $2,977,099.53 disgorgement plus $506,228.74 prejudgment interest, jointly and severally; $100,000 civil penalty for Sanders
Francisco J. Herrera	Same injunctions; court to decide later whether to order disgorgement, interest and/or a penalty

Source: SEC release [1].

The cases are SEC v. Sanders Family Office, LLC, et al., No. 5:26-cv-03953 (W.D. Tex.), and SEC v. Francisco J. Herrera, No. 1:26-cv-24369 (S.D. Fla.) [1].

Why broker registration matters to you

Registered brokers must pass exams, are supervised by a firm, and must have a reasonable basis to recommend an investment. A seller paid a commission for each dollar raised, with no firm overseeing them, has every incentive to keep selling and little obligation to check the product. When a radio host or a "family office" pitches promissory notes, look them up on FINRA BrokerCheck first.

What "settled, subject to court approval" means

This is a civil case brought by the Securities and Exchange Commission, not a criminal prosecution. The SEC cannot send anyone to prison; it asks a federal judge for orders such as injunctions, repayment of allegedly ill-gotten gains (called disgorgement), interest on that money, civil penalties and industry bars.

In a settled action, the defendant agrees to a proposed judgment without admitting or denying the SEC's allegations. That is not a finding of liability by a court, and it is not a criminal conviction. A proposed judgment also does not take effect until a judge signs it. As of Oct. 12, 2026, we have not confirmed whether the court has entered the judgment described below. If it has, we will update this article.

Red flags to watch for

• Notes promoted on radio or online by someone who isn't a registered broker.
• Commission-paid "teams" of sales agents.
• Unregistered offerings sold to hundreds of people nationwide.

What to do if you invested

1. Keep every record: account statements, promissory notes, subscription agreements, emails, texts, wire confirmations and screenshots of websites or videos.
2. Report it to the SEC at sec.gov/tcr. If you invested with Wells Real Estate Investment, the SEC says a court-appointed receiver is working to recover funds for investors; look for the receiver through the court case, not through anyone who contacts you offering help for a fee.
3. Check who you are dealing with. Before investing, search the person and firm on the SEC's Investor.gov adviser search and FINRA's BrokerCheck.
4. Beware of "recovery" offers. People who lost money in investment frauds are often contacted by scammers who promise to recover it for an upfront fee. Government agencies and court-appointed receivers do not charge victims to file claims.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status as of Oct. 12, 2026	Source
Margaret Sanders; Sanders Family Office, LLC	U.S. District Court, W.D. Tex. (No. 5:26-cv-03953)	Settled (registration violations, not fraud) June 23, 2026, without admitting; proposed $2.98M disgorgement + $506,228.74 interest, $100,000 penalty for Sanders; subject to court approval	[1], [2]
Francisco J. Herrera	U.S. District Court, S.D. Fla. (No. 1:26-cv-24369)	Settled (registration violations, not fraud) June 23, 2026, without admitting; bifurcated, money to be decided; subject to court approval	[1], [3]
Jean Joseph; Janalie C. Bingham (not sellers; underlying scheme)	S.D. Fla. (SEC civil and criminal No. 1:25-cr-20483)	SEC final consent judgments Dec. 3 and 5, 2024; per SEC, both pleaded guilty in parallel criminal case	[1]

Statuses can change. An SEC complaint contains allegations, and a settlement without admitting or denying them is not a finding of wrongdoing.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26571, "SEC Files Settled Actions Against Unregistered Sales Agents Who Helped Raise Millions in Alleged $56 Million South Florida Real Estate Ponzi Scheme," June 24, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26571
2. SEC complaint, SEC v. Sanders Family Office, LLC, et al., No. 5:26-cv-03953 (W.D. Tex. filed June 23, 2026). https://www.sec.gov/files/litigation/complaints/2026/comp26571-sanders.pdf
3. SEC complaint, SEC v. Francisco J. Herrera, No. 1:26-cv-24369 (S.D. Fla. filed June 23, 2026). https://www.sec.gov/files/litigation/complaints/2026/comp26571-herrera.pdf

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, a court ruling on a proposed judgment, or any other change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.