MILWAUKEE — A Milwaukee businessman accused of running a real estate investment scheme that allegedly defrauded at least 30 clients out of nearly $2 million has formally responded to federal fraud charges, denying all allegations and asking a judge to dismiss the case.
Joseph Nantomah is facing a lawsuit from the U.S. Securities and Exchange Commission, which accuses him of duping investors, including a Milwaukee couple who lost their life savings.
Watch: Milwaukee couple's retirement dreams shattered by alleged $2M investment fraud
"He's a swindler. He's just, he's very good at what he does, and unfortunately, we believed him," said an anonymous couple who invested with Nantomah.
According to court documents, Nantomah promised to use investors' money to flip real estate and turn a profit. However, SEC lawyers allege he spent almost all of the money on himself, buying items like jewelry and cars.
The anonymous Milwaukee couple met Nantomah through their church community and bank records show they invested more than $100,000 into his company. They say Nantomah promised they'd get their money back plus $35,000 in profits through real estate flipping, but they haven't received anything.
"It is shameful and embarrassing," the wife said, explaining why they want to remain anonymous, adding that they haven't told their children about the missing retirement money.
"Can you imagine getting the rug pulled from under your feet and you fall on your face?" the husband said, describing the betrayal.
The couple is represented by Milwaukee's AxePoint Law, which has filed nearly two dozen civil cases against Nantomah on behalf of former investors.
"We have actual cases where judges, as a matter of law, have ruled on the merits and found Mr. Nantomah to be operating a Ponzi scheme," said Emil Ovbiagele from AxePoint Law.
"We have clients who had to move out of their homes, who couldn't have their kids go to college. We had clients who this has wrecked their marriages because of the financial devastation," Ovbiagele said.
AxePoint says Nantomah has failed to make payments under multiple settlement agreements.
Nantomah's website claims he has "real estate assets currently valued at over $23 million." However, according to SEC filings, Nantomah and his three businesses owned only 11 properties worth about $1 million, with more than half in danger of foreclosure.
The SEC also alleges that the "rags to riches" success story Nantomah uses to entice potential investors, many of them Nigerian immigrants, is misleading. In deposition footage, when questioned about his claim that he emigrated to Wisconsin with just $4,700, Nantomah said he couldn't remember the exact amount but had enough money to take care of his family.
Nantomah has formally responded to the SEC's fraud lawsuit in a new federal court filing, maintaining that real estate deals at the center of the case were not securities and saying losses were driven by market conditions, not fraud.
Over the course of a year, TMJ4 has tried to track him down by visiting home and office addresses, calling and emailing. Nantomah responded once, writing in part: "I have never stolen any investors' funds" and "based on the volume of transactions we do, it's not uncommon for some partners to be aggrieved when doing business."
Updated federal court filings confirm Nantomah has moved to Florida, where the Milwaukee couple fears he is targeting new victims.
"He pretended he cared about us and he lied," they said.
When asked what justice would look like, the husband said: "Get our money back, get our investment and, you know, I really don't wish nobody harm, but he needs to get what he deserves for doing what he's doing to people. It's not right."
The federal lawsuit is now moving forward after delays from the recent federal government shutdown. The court has scheduled a Feb. 23 conference to set case deadlines.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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