Posted in Uncategorized
By Tony Liu, Founder and Principal Business Trial Attorney
In Summary:
If someone promises you “guaranteed” 15% monthly returns or 360% per year on an investment, walk away. The SEC’s case against Linh Thuy Le and Trong Luu, founders of Inventis Ventures Holding Inc., reveals how false assurances of safety and unrealistic profits can spiral into massive fraud. This article explains what happened, the warning signs business owners should recognize, and what to do if you suspect investment misconduct in California.
The Case That Shocked Orange County
In October 2025, Linh Thuy Le (CEO) and Trong Luu (CFO) of Inventis Ventures Holding Inc., based in Tustin, were arrested by the FBI and charged with wire fraud and money laundering.
According to the SEC’s civil complaint, Le and Luu lured at least 1,400 investors—mostly from the Vietnamese and Latino communities—with a promise that sounded too good to fail:
“Earn 15% interest per month or 360% annually. Your principal is guaranteed and safe.”
Investors were told their money would fund “emerging projects” in sectors like real estate and health insurance, or that Le had access to a mysterious bank offering 40% returns.
In truth, the SEC alleges, the couple used new investor funds to pay earlier ones, covered personal expenses, and bought two Yorba Linda mansions and a Huntington Beach waterfront condo—a classic Ponzi scheme.
What “Guaranteed Returns” Really Mean Under the Law
Legally speaking, no investment involving risk can be guaranteed—especially in private, unregistered offerings.
Under federal securities laws and California’s Corporate Securities Law of 1968, guarantees of safety or fixed profits on speculative ventures are inherently misleading and unlawful.
Why the Law Prohibits “Guaranteed” Investments
- No one can promise market performance. Even legitimate funds fluctuate.
- Guarantees imply insurance or backing that doesn’t exist unless disclosed and verified.
- False assurances manipulate investor psychology—tapping into fear of loss and greed for passive income.
In Le and Luu’s case, these false statements became material misrepresentations forming the foundation of both civil and criminal charges.
How Business Owners Get Caught in the Crossfire
Many local business owners don’t see themselves as investors—they see themselves as supporters, partners, or early backers of a community venture.
But when they:
- transfer funds without documentation,
- rely on personal trust instead of legal verification, or
- accept referral commissions for introducing friends,
they may inadvertently become participants or victims in a securities fraud scheme.
Even innocent recipients of funds can face clawback demands under California’s UVTA.
Red Flags Every Investor or Business Owner Should Spot
1. Unrealistic Yields
If the return beats the stock market tenfold, it’s not a reward—it’s bait.
15% monthly (or 360% annual) returns are mathematically unsustainable.
2. “Safe,” “Guaranteed,” or “Insured” Claims
These words imply regulatory protection that almost never exists in private investments.
3. Vague or Inconsistent Explanations
Le reportedly gave different investors conflicting stories about where funds were going—“real estate,” “health insurance,” “a private bank.” Inconsistent narratives equal deception.
4. Cash or Zelle-Only Payments
Fraudsters avoid paper trails. Legitimate investments use traceable banking channels.
5. Pressure to Recruit Others
Offering referral bonuses or “profit sharing” for bringing in new investors is a hallmark of a Ponzi-style structure.
The Psychology of “Guaranteed Returns”
Fraudsters like Le and Luu exploit certainty bias—our natural attraction to predictable outcomes. Phrases like “guaranteed,” “insured,” or “principal protected” reduce healthy skepticism and make investors lower their guard.
This manipulation is especially effective within tight-knit communities where trust runs deep and word-of-mouth carries weight.
Legal Protections and Next Steps
If you invested—or think someone in your network did—here’s what to do:
- Preserve all evidence. Keep texts, contracts, receipts, and promotional materials.
- Report immediately. Contact the SEC, FBI, or California’s Department of Financial Protection and Innovation (DFPI).
- Consult a business litigation attorney. You may have recovery options or defenses if you received or sent funds.
- Don’t delete communications. These can show your intent and timeline—critical for distinguishing victims from participants.
Frequently Asked Questions
1. What does “guaranteed returns” mean legally?
In most cases, it’s a red flag for fraud. Unless insured by a government-backed entity (like FDIC), no private investment can legally promise guaranteed profits.
2. How can I verify if an investment is legitimate?
Ask for SEC registration, offering documents, and audited financials. Then verify them independently. Use FINRA BrokerCheck to confirm licenses.
3. What should I do if I unknowingly promoted an investment?
Stop all activity immediately and seek legal counsel. You may need to cooperate with authorities to clarify your role and protect yourself.
4. Can victims get their money back?
Possibly. The SEC often seeks asset freezes and restitution funds, but recovery depends on remaining assets and court-appointed receivership actions.
5. How can business owners avoid these scams?
Be skeptical of high returns, request written disclosures, verify regulatory filings, and avoid paying or accepting referral fees tied to investments.
Conclusion: When the Promise Is Too Perfect, It’s a Problem
The Inventis Ventures case is a sobering reminder that “guaranteed returns” are never guaranteed.
Behind every too-good-to-be-true pitch lies either risk or deception—and often both.
Whether you’re investing your own capital or simply referring friends, take time to verify claims, review documents, and consult a qualified business attorney before sending money.
If you suspect you’ve been targeted by an investment scam—or want to audit your exposure—contact Focus Law for a confidential consultation.
We help Southern California business owners uncover fraud, respond to SEC actions, and protect their reputations before damage spreads.
