Federal prosecutors have announced criminal charges against a company founded by Las Vegas celebrity Dan Bilzerian and his father, Paul Bilzerian. The charges allege that the elder Bilzerian funneled money to his son’s business while owing judgments that exceed $180 million. A federal grand jury returned a nine-count indictment against Ignite International Brands Ltd., Paul Bilzerian, and Ignite executive Scott Rohleder on charges including conspiracy to defraud the United States and wire fraud. The defendants are accused of conspiring to evade securities regulators collecting on judgments against Paul Bilzerian, a former Wall Street investor.
Dan Bilzerian, a social media star with a massive following on Instagram, is not a defendant in the case and has not been accused of any wrongdoing. However, his father and the company he founded are facing serious legal issues. The indictment alleges that Rohleder falsely characterized Bilzerian’s Las Vegas mansion as a rental property in tax returns. Paul Bilzerian, who currently resides in St. Kitts, has not responded to requests for comment.
Prosecutors claim that Paul Bilzerian had de facto control over Ignite International Brands Ltd., despite his son Dan being the chairman and CEO. Along with Rohleder, Paul Bilzerian was involved in overseeing Ignite’s operations, strategy, marketing, and fundraising. The Securities and Exchange Commission also filed a civil complaint against Ignite, Paul Bilzerian, Rohleder, and others, alleging fraudulent reporting of revenue.
Paul Bilzerian, known for his involvement in corporate takeover bids, has a history of legal troubles. He was convicted of securities fraud in 1989 and served prison time. The SEC obtained civil judgments against him in the 1990s that now exceed $180 million, with only a fraction recovered. Prosecutors allege that Paul Bilzerian operated shell companies to funnel money to Ignite, including International Investments Ltd.
The Review-Journal reported that a holding company owned by Dan Bilzerian filed for bankruptcy last year, listing International Investments Ltd. as its largest creditor. The lender was associated with Paul Bilzerian, despite his denial of owning shares or controlling the entity. The federal indictment includes an email from Paul Bilzerian to a journalist denying ownership or control of International Investments.
The legal issues facing Dan Bilzerian’s company and his father highlight the complexities of financial dealings and regulatory compliance. The allegations of fraud and conspiracy underscore the importance of transparency and accountability in business operations. The legal proceedings against Ignite International Brands Ltd. and Paul Bilzerian are ongoing, with implications for their financial and legal futures. The case serves as a cautionary tale about the consequences of financial misconduct and the need for ethical business practices in the corporate world.