SEC Files Suit Against Edwin Lickiss Over Alleged $12.7 Million Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) has filed a civil enforcement action against Edwin Emmett Lickiss, Jr., alleging that the 77-year-old California resident operated a Ponzi scheme that defrauded dozens of investors over more than two decades. The complaint, lodged on July 21, 2025, in the U.S. District Court for the Northern District of California, outlines a fraudulent investment operation that dates back to at least 1998 and continued through 2024.

According to the SEC, Lickiss raised millions through the sale of promissory notes that falsely promised investors returns ranging from 9% to 32%. From 2018 to August 2024 alone, he allegedly collected at least $12.7 million from approximately 80 individuals. While the specifics of his pitch to investors varied, the SEC asserts that Lickiss often claimed the funds would be invested in high-yield government bonds or similarly exclusive opportunities.

However, the complaint reveals that these representations were knowingly false. Bank records indicate that Lickiss used most of the investor funds to make payments to earlier investors - a classic hallmark of a Ponzi scheme - or to cover personal expenses. The SEC alleges that none of the money was invested as promised.

Lickiss conducted his activities under the business name Foundation Financial Group (FFG), using accounts in both his and the company's name to facilitate transactions. His financial career included roles as a registered representative at various broker-dealers until 2014, when he was suspended by the Financial Industry Regulatory Authority (FINRA) for failing to disclose tax liens. He voluntarily left his position shortly thereafter.

The SEC's legal action accuses Lickiss of violating multiple federal securities laws, including Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5. The agency is seeking permanent injunctive relief, disgorgement of ill-gotten gains plus interest, and civil monetary penalties.