Paul A. Bilzerian was indicted Thursday by a federal grand jury in California for allegedly dodging a decades-old judgment owed to the U.S. Securities and Exchange Commission that now exceeds $180 million.
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Paul A. Bilzerian, a well-known corporate takeover specialist, was hit with an indictment on Thursday by a federal grand jury in California. The charge? Allegedly dodging a decades-old judgment owed to the U.S. Securities and Exchange Commission (SEC), which has now ballooned to over $180 million.
According to prosecutors, Bilzerian avoided paying this massive judgment while running Ignite, a cannabis and lifestyle brand that, on the surface, appeared to be headed by his son, Dan Bilzerian, the infamous social media influencer. However, the reality seems to be a little different.
Bilzerian allegedly funneled millions of dollars through shell companies to keep Ignite afloat and, in the process, cheated investors, the Justice Department revealed in an announcement on Friday.
“On paper, Ignite’s CEO was Bilzerian’s son D.B. — a professional poker player who gained notoriety on social media for his glamorous and ostentatious lifestyle,” stated the U.S. Attorney’s Office in L.A. “In fact, Bilzerian exercised de facto control of the company.”
Prosecutors further claim that Bilzerian has been faking indigence to avoid paying the SEC what he owes, despite being actively involved in these business dealings.
The indictment names Bilzerian, now 74, Ignite International Brands (which is based in Canada), and Scott Rohleder, Bilzerian’s accountant for years, as the key players in this scheme. They're charged with conspiracy to defraud the U.S., wire fraud, securities fraud, and more.
Interestingly, Dan Bilzerian hasn’t been charged, though the indictment refers to him by his initials only.
Attempts to reach lawyers representing the defendants have so far been unsuccessful. Their arraignment is scheduled for October 28.
“This indictment alleges a long-running pattern of criminal behavior to avoid a regulator’s judgment, mislead investors, and cheat the IRS,” said U.S. Attorney Martin Estrada in a statement.
This situation has its roots in 1989 when Bilzerian was convicted of securities and tax fraud related to three failed takeover bids. He was sentenced to four years in prison but served only 13 months. Fast forward to 1993, and the SEC came after him in a civil action, securing judgments totaling more than $62 million. But, as prosecutors say, Bilzerian has managed to evade paying for decades.
By 2000, a federal court found him in contempt and appointed a receiver to collect his assets. Despite those efforts, the SEC only managed to recover about $547,000 — just a tiny fraction of what he owed. Now, with interest, the amount has skyrocketed to over $180 million.
From December 2018 to September 2024, Bilzerian, Rohleder, and Ignite allegedly conspired to block the SEC from collecting the money. Prosecutors say Bilzerian ran numerous shell companies to hide his involvement in Ignite, while both he and Rohleder oversaw the company’s operations, marketing, and fundraising. They even held daily management meetings.
According to the indictment, Bilzerian had a say in hiring and firing top executives at Ignite and even board members. But once Bilzerian got wind that federal law enforcement was aware of his involvement in the company, Ignite issued a press release calling both him and Rohleder “unpaid consultants.”
Prosecutors also claim that the duo misled investors by inflating Ignite’s sales figures.
If convicted on all counts, Bilzerian and Rohleder could each face up to five years in federal prison for the conspiracy charges and up to 20 years for each wire fraud charge. Rohleder is also looking at up to three years for each tax fraud charge.
To top it off, the SEC filed civil charges against Bilzerian, Rohleder, and Ignite on Friday, tying into the criminal allegations.
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