$20M Ponzi Scheme Conviction For Chevy Chase Woman

CHEVY CHASE, MD — A former financial adviser from Chevy Chase was convicted Wednesday on charges related to a $20 million Ponzi scheme, according to a statement released by the Justice Department. Dawn J. Bennett, 56, was convicted of all 17 charges, including wire fraud, conspiracy, and making false statements on a loan application. A sentencing date has not been set.

From December 2014 to April 2017, Bennett received more than $20 million from 46 investors, most of them elderly, according to the DOJ press release. Prosecutors said Bennett solicited the investors and used their money to pay for her lavish lifestyle, legal fees, and payments to earlier investors.

"Dawn Bennett's greed knew no bounds as she knowingly defrauded elderly retirees of their life's savings," said U.S. Attorney Robert K. Hur. "This conviction — and the years in federal prison that she is facing — holds her accountable for her actions."

Some of Bennett's expenditures included astrological gems, cosmetic medical procedures, and religious rituals in India. According to the press statement, Bennett "paid a website operator to arrange for priests in India to perform religious ceremonies to ward off federal investigators."

According to the press release, in May 2015 DJB Holdings, LLC obtained a $750,000 line of credit secured by the inventory of DJB Holdings, which Bennett owned and operated. To secure the line of credit, Bennett provided false statements to the bank. Bennett said her brokerage account had a net portfolio value of more than $4 million. In reality, the net portfolio value was $35.

The loan was strictly meant for business operations. However, Bennett used the proceeds for personal expenses. When the loan went into default, the lender notified Bennett — who said she was unaware and had been in China for eight months. Trial evidence, however, contradicted that claim. According to the press release, her personal credit card was used in the Chevy Chase and DC area during that time period.

"Bennett faces a maximum of 20 years in prison for wire fraud conspiracy and for each of nine counts of wire fraud; a maximum of five years in prison for securities fraud conspiracy; a maximum of 20 years in prison for each of four counts of securities fraud; and a maximum of 30 years in prison each for bank fraud and for false statements on a loan application," the Justice Department said.

Bennett's co-defendant, Bradley Mascho, 52, of Frederick, Maryland, pleaded guilty in June 2018 for committing securities fraud and making a false statement, the Justice Department said. Mascho faces a maximum of 10 years in prison.

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