Connecticut Man Loses $55,748 in Alleged Stock Investment Scam After Refusing Extra Withdrawal Fees
A 70-year-old Connecticut man lost $55,748 in an alleged stock investment scam after sending more than $125,000 to people promising investment returns. The situation took a troubling turn when he tried to withdraw his money and was told to pay additional fees before accessing his funds.
According to a November 13 report by CT Insider, the victim had transferred $125,748 for supposed stock investments. He later recovered $70,000 after police contacted one of the businesses that received his money.
How the Alleged Investment Scam Started
The Ledyard resident reportedly met someone using the name “Manny Backus” on Discord in 2024. The person promised to help him earn money through stock market investments and instructed him to transfer funds into designated bank accounts.
The victim sent money during May and June 2024. However, when he requested a withdrawal in July, he was reportedly told that his investment account needed to reach $200,000 before he could access his funds.
The contact subsequently demanded additional payments, including a 10% commission and a separate 10% tax.
The victim refused to send more money and contacted police.
Important Details of the Case
| Case Detail | Information |
|---|---|
| Victim’s Age | 70 |
| Location | Ledyard, Connecticut |
| Total Amount Sent | $125,748 |
| Amount Recovered | $70,000 |
| Amount Unrecovered | $55,748 |
| Suspect | Ikeoluwa Famubode |
| Arrest Date | November 5, 2026 |
| Scheduled Arraignment | November 23, 2026 |
Police Investigation and Arrest
According to the arrest warrant, detectives traced $55,748 to the bank account of Zanzibay LLC, a Maryland-based wholesale consumer goods company. Business records reportedly identified Famubode as its resident agent.
Another $70,000 had been transferred to Ozz Guys LLC, a business involved in uniform sales and cleaning services. After police contacted a company representative, the money was returned.
Police reportedly charged Ikeoluwa Famubode, 40, of Pikesville, Maryland, with one count of first-degree larceny and two counts of second-degree larceny.
He was taken into custody in Maryland and extradited to Connecticut. He is presumed innocent unless proven guilty.
Warning Signs of Investment Scams
The Securities and Exchange Commission warns investors about advance-fee fraud, in which scammers demand additional payments before allowing victims to withdraw supposed investment profits.
Watch for these warning signs:
- Requests for additional taxes or commissions before withdrawals.
- Investment contacts communicating through unfamiliar online platforms.
- Pressure to transfer money into designated bank accounts.
- Promises of unusually attractive investment returns.
- Withdrawal restrictions followed by demands for more payments.
As the SEC explains in its advance-fee fraud guidance, demands for extra payments to release investment funds can be a warning sign of fraud.
Final Takeaway
The Connecticut case highlights the financial risks of trusting unknown online investment contacts. Investors should independently verify investment platforms and avoid sending additional money when unexpected withdrawal fees are demanded.
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