Judge Freezes Assets of Alleged Ponzi Schemer and Sale of House by Cranston Businessman

Judge Freezes Assets of Alleged Ponzi Schemer and Sale of House by Cranston Businessman

Federal Court Judge F. Dennis Saylor, IV has issued a temporary restraining order (TRO) freezing the assets of Rhode Island native and former U.S. Marine Christopher Aubin, who is an alleged Ponzi schemer. 

Included in the court order is the prohibition of the sale of a house that is held under the control of Cranston businessman Russell Miller, Jr.

According to the U.S. Securities and Exchange Commission (SEC), Aubin scammed 20 investors out of millions.

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Those investors lost $2 million or more.

The alleged victims include former Marines, small business owners, and retirees. Each thought they were investing with Aubin, and he promised high returns. But in reality, Aubin was spending money on luxury cars, charter flights, and European travel.

The entire story was unveiled by GoLocalProv in September of 2024.

Aubin’s attorney, Stephen Frank, argued that the SEC’s efforts to freeze the assets were an overreach. In a court filing, Frank wrote, “The Commission’s argument concerning the balance of equities and the public interest is equally perfunctory. An asset-freeze injunction is the ‘nuclear weapon’ of the law.”

Frank is a high-profile Boston attorney who cites in his bio that he is "an award-winning financial reporter at the Wall Street Journal and CNBC, where he appeared regularly on the network’s flagship morning program, Squawk Box.  A graduate of Harvard College and Harvard Law School, Mr. Frank was only the third person in Harvard University history to be selected to deliver both the undergraduate and graduate orations at the university-wide Commencement ceremonies."

 

Judge's Decision

According to Judge Saylor, in issuing the TRO, the government has made its case.

"The Court finds that the Commission has made the showing required…(1) it is reasonable like to establish that Christopher Aubin [and his companies] have directly or indirectly engaged in the violations alleged in the complaint; (2) there is a reasonable likelihood that these violations will be repeated; (3) there is a strong indiction that, unless restrained and enjoined by this Court, Defendants may dissipate and conceal assets which could be subject to an order of disgorgement or an order to pay a civil monetary penalty in this action, and (4) entry of a temporary restraining order freezing assets is in the public interest,” wrote Judge Saylor.

Included in the order, Judge Saylor specifically blocks the sale of the home on Chalkstone Avenue controlled by Miller.

The SEC has asserted that home was being used by Aubin and Miller to move money — money taken from investors.

 

According to the SEC:

Aubin and Anchor State transferred proceeds from their fraudulent investment scheme, through a title agent, to Relief Defendants Miller and Miller Property for no legitimate purpose or consideration.

In December 2023 and January 2024, Aubin and Anchor State transferred approximately $300,000 from an Anchor State bank account to fund the entire purchase price of property located at 1314 Chalkstone Avenue, Providence, Rhode Island (the “Property”).

Despite the fact that Anchor State paid the entire purchase price of the Property, Defendants allowed the Property to be titled in the name of Miller Property. At the time of the Property’s purchase, Anchor State’s account was substantially funded with investors’ funds.

Then, in January 2024, Defendants transferred an additional $70,000 from an Anchor State bank account to Miller and Miller Property to fund renovations to the Property.

The transferred funds also came substantially from investors’ funds. Miller and Miller Property received personal benefits from both the titling of the Property in the name of Miller Property, and the transfers of funds to them to pay for the Property’s renovations.

Miller and Miller Property are not entitled to retain the financial benefit they received by virtue of these transfers.

 

The property was still listed over the weekend on real estate sites for $465,000. It has now been withdrawn.

Miller is now represented by Rhode Island criminal attorney William Devine.

Ashley Corcoran, Aubin's onetime girlfriend, is also named in the SEC action. She and Aubin are named in a civil case filed in Rhode Island by eight alleged victims.