Businessman Pleads Guilty to $5.9M Ponzi Scheme

LOS ANGELES – Sylvein William Maximilian DHabsburg XVII, a businessman from West Hills, California, has agreed to plead guilty to operating a Ponzi scheme that deceived the Filipino community, including elderly churchgoers, out of more than $5.9 million.

D'Habsburg, 48, falsely claimed to be a descendant of European aristocracy and even mentioned that basketball luminaries Kobe Bryant and Michael Jordan were among his investors. According to the US Attorney's Office, D'Habsburg made fraudulent promises in order to target weak investors and steal their money.

D'Habsburg is anticipated to enter a guilty plea to one count of wire fraud in the coming weeks. A spokeswoman for the Department of Justice explained that, despite his name change, D'Habsburg is not a descendant of the Holy Roman or Austrian rulers, as he claimed.

Between January 2018 and June 2023, D'Habsburg used recruiters to identify possible investors for his firms, Wild Rabbit Technologies LLC and BAI Intelligence LLC. According to his plea deal entered in Los Angeles federal court, the scam primarily targeted the Filipino population, notably elderly church parishioners.

D'Habsburg misrepresented his firm's technology during investment presentations, saying that he had created artificial intelligence capable of forecasting the future and identifying COVID-19 via video analysis.

He also erroneously stated to investors that his companies had already received around $500 million from high-profile people such as Bryant, Jordan, and Steve Wozniak. He stated that the money would be utilized to grow his firm and secure patents.

Instead, D'Habsburg spent the victims' money on an expensive lifestyle, including a 1933 Rolls-Royce Phantom II and rare antiques such as 19th-century Italian Giltwood Thrones.

As a result, the victims lost almost $5.9 million. D'Habsburg now faces up to 20 years in federal prison after pleading guilty, officials said.

The House of Habsburg-Lorraine, the noble dynasty he claimed to be a member of, governed the now-defunct Austro-Hungarian empire.

Conclusion

This case demonstrates the potential harm caused by deceitful persons who target vulnerable groups. D'Habsburg's guilty plea should serve as a reminder to potential investors to exercise caution and conduct extensive research before making financial commitments.