'Guaranteed' 3% to 6% a Month: Two Texans Settle SEC Case Over Alleged $91 Million Bond-Trading Ponzi Scheme

Published Oct. 8, 2026. Case statuses are current as of that date.

Twelve "guaranteed" monthly payments of 3% to 6%, your principal back in 14 months, and an extra product to protect against loss. The SEC says that was the pitch behind a Dallas-Fort Worth investment program that raised at least $91 million from more than 200 investors, and that the returns came from new investors' money, not bond trading.

On Sept. 28, 2026, a federal judge in the Eastern District of Texas entered final judgments by consent against Robert D. Welsh and Caedrynn E. Conner, two of three men the SEC sued in April 2025, the agency announced on Oct. 7 [1]. The SEC has asked the court for a default judgment against the third defendant, Kenneth W. Alexander II [2].

Important: This is a civil case, not a criminal prosecution. Welsh and Conner settled without admitting the SEC's allegations. The claims against Alexander have not been decided. We found no criminal charges against any of the three in our search.

How the alleged scheme worked

According to the SEC's complaint [3][4]:

1. The vehicle. Between about May 2021 and February 2024, Alexander and Welsh allegedly ran the "Vanguard JV Cash Program" through Vanguard Holdings Group Irrevocable Trust (VHG), a trust Alexander controlled.
2. The story. They allegedly held VHG out as a highly profitable international bond trading business with billions in assets and said monthly returns came from international bond trading and related activities.
3. The promise. Investors were told they would receive 12 guaranteed monthly payments of 3% to 6% a month, with principal returned after 14 months.
4. The "protection." Investors could buy a purported financial instrument called a "pay order" that supposedly protected them from loss. The SEC says that protection was "illusory."
5. The feeder fund. Conner allegedly funneled more than $46 million of investor money into VHG through a related program he ran, the Benchmark JV Cash Program, using Benchmark Capital Holdings Irrevocable Trust, which he controlled. The SEC alleged that by the end of 2022 Conner knew, or was severely reckless in not knowing, facts pointing to fraud [1].
6. The reality. VHG had no material source of revenue, and the monthly returns were actually Ponzi payments, the SEC alleged. Alexander and Conner allegedly misappropriated millions for personal use, including Conner's purchase of a $5 million home.

The Dallas Morning News reported in 2025 that the complaint also alleges investor money paid promoters' commissions and $1.1 million in compensation to Welsh, and that some VHG money went to settle lawsuits from an earlier advance-fee loan scheme run by Alexander and Welsh through an entity called Axiom Financial. The paper reported Alexander lived in Fort Worth, Welsh in Frisco and Conner in Heath [5].

The people named and their status

Robert D. Welsh, of Frisco, Texas. Without admitting the allegations, Welsh consented to a final judgment that permanently bars him from violating the registration and antifraud provisions of federal securities law and from participating in the issuance, offer or sale of securities, except for trades in his personal accounts. He was ordered to pay $1,062,069 in disgorgement, $168,077 in prejudgment interest and a $450,000 civil penalty [1][5].

Caedrynn E. Conner, of Heath, Texas. Also without admitting the allegations, Conner consented to the same types of injunctions and was ordered to pay $8,575,250 in disgorgement, $1,357,072 in prejudgment interest and a $500,000 civil penalty [1].

Kenneth W. Alexander II, of Fort Worth, Texas. The court docket shows the SEC filed a motion for default judgment against Alexander on Sept. 23, 2026. The docket summary we reviewed lists no attorney for him and shows no ruling on that motion yet [2]. The allegations against him are unproven.

The case is SEC v. Kenneth W. Alexander II, et al., No. 4:25-cv-00446-JCB (E.D. Tex.), before U.S. District Judge J. Campbell Barker [1][2].

Red flags

• "Guaranteed" monthly returns, especially 3% to 6% a month. That works out to roughly 36% to 72% a year before compounding, far above what legitimate bond investments pay.
• Vague, exotic strategies such as "international bond trading" or "private placement programs" that you can't verify.
• Products sold as loss protection (here, "pay orders") that aren't issued by a bank or insurer you can check.
• Trusts and joint-venture "programs" instead of registered funds with independent custodians and audits.
• Feeder programs run by someone you know that pool money into another person's investment.

What to do

1. Check registration of both the offering and the person selling it on the SEC's Investment Adviser Public Disclosure site and FINRA BrokerCheck, and search the SEC's EDGAR database.
2. Ask who holds the money. Legitimate funds use an independent custodian and audited financial statements.
3. Be skeptical of steady, high payouts. Early payments that arrive on time are how Ponzi schemes build trust.
4. Report concerns to the SEC at sec.gov/tcr and to your state securities regulator.

Case status (as of Oct. 8, 2026)

Defendant	Court	Status as of Oct. 8, 2026	Source
Robert D. Welsh, Frisco, TX	Federal, E.D. Tex. (4:25-cv-00446-JCB), SEC civil	Final consent judgment entered Sept. 28, 2026, without admitting or denying; injunctions; $1,062,069 disgorgement, $168,077 interest, $450,000 penalty	[1], [2]
Caedrynn E. Conner, Heath, TX	Same	Final consent judgment entered Sept. 28, 2026, without admitting or denying; injunctions; $8,575,250 disgorgement, $1,357,072 interest, $500,000 penalty	[1], [2]
Kenneth W. Alexander II, Fort Worth, TX	Same	Sued by SEC (April 2025); SEC motion for default judgment filed Sept. 23, 2026, pending; allegations unproven	[2], [3]

Civil allegations are unproven unless and until a court rules. Statuses can change.

Sources

1. U.S. Securities and Exchange Commission, "SEC Obtains Final Consent Judgments as to Two DFW Residents Charged in Alleged Ponzi Scheme," Litigation Release No. 26668, Oct. 7, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26668
2. SEC v. Alexander, II et al., No. 4:25-cv-00446 (E.D. Tex., filed April 29, 2025), docket summary, PacerMonitor, accessed Oct. 8, 2026. https://www.pacermonitor.com/public/case/57840381/Securities_and_Exchange_Commission_v_Alexander,_II_et_al
3. U.S. Securities and Exchange Commission, "SEC Charges Three Texans with Defrauding Investors in $91 Million Ponzi Scheme," Litigation Release No. 26301, May 2, 2025. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26301
4. U.S. Securities and Exchange Commission, "SEC Charges Three Texans with Defrauding Investors in $91 Million Ponzi Scheme," press release 2025-71, April 29, 2025. https://www.sec.gov/newsroom/press-releases/2025-71
5. Michelle Casady, "SEC says 3 D-FW residents ran $91M Ponzi scheme," The Dallas Morning News, May 7, 2025. https://www.dallasnews.com/news/courts/2025/05/07/sec-says-3-d-fw-residents-ran-91m-ponzi-scheme/

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