Marietta Man Pleads Guilty In $25M-plus Ponzi Scheme: DOJ

ATLANTA, GA — A former Southport Capital president and Marietta resident pleaded guilty recently after justice officials said he operated a Ponzi scheme that defrauded investors out of at least $25 million.

John L. Woods, 58, pleaded guilty to criminal information charging a single offense of wire fraud. His sentencing has not been scheduled.

He manages Horizon Private Equity III, which justice officials said Friday is the center of the scheme. More than 400 investors in at least 20 states were affected by the scheme, justice officials said.

Woods is accused of using money he gathered from new investors to primarily pay prior investors by offering low-risk investments, profitable returns and a diversified portfolio. He is also accused of soliciting investors for Horizon Private Equity.

Justice officials said Horizon investors were promised rates of return of 6 to 7 percent. They said investors were told they would earn a return by investing in government bonds, stocks or small real estate projects at minimal and safe risks.

“Investors should respond with caution to financial offers that sound too good to be true and are cloaked in the promise of low risk and high rates of return," U.S. Attorney Ryan K. Buchanan said in a news release.

Woods is accused of operating the Ponzi scheme until he was shut down by the U.S. Securities and Exchange Commission in 2021. At the end of July 2021, Horizon investors were owed more than $110,000,000 in principle investment amounts, justice officials said.

The exact amount investors were defrauded is being calculated, justice officials said.