A 43-year-old Sioux Falls man is staring down 29 federal charges after prosecutors say he ran a textbook Ponzi scheme dressed up in crypto clothing, bilking investors out of an estimated $20 million over the better part of a decade.
Benjamin Paul Wiener, who operated a cluster of companies under the “Benaiah” brand, pleaded not guilty on July 10 and was released on bond. His trial is set for September 15.
The playbook: promise big, pay with other people’s money
The indictment, returned by a federal grand jury in June, paints a familiar picture. Wiener allegedly promised investors substantial returns on digital asset investments through entities like Benaiah Capital LLC and Benaiah Holdings Inc. In reality, prosecutors say, the money coming in from new investors was simply recycled to pay earlier ones.
Since at least 2018, Wiener’s Benaiah entities raised approximately $25.1 million, primarily from investors in South Dakota and Minnesota. Of that total, roughly $12 million was returned to investors. The other $13 million or so? Prosecutors allege $5.7 million went directly toward Wiener’s personal expenses.
