James Ward will pay an $80,000 civil penalty after defrauding consumers through Apex Financial.

Apex Financial was an MLM crypto Ponzi launched in 2021. The scheme was built around APT, a token Ward created.

The SEC filed suit against Ward in 2024, alleging Ward defrauded “at least 70 investors” out of “at least $852,000”.

Ward (right) settled with the SEC back in March 2025, however specifics of the settlement received pushback from the court.

In July 2025 the SEC requested the court impose a $150,000. Ward responded to request and argued for a lower penalty, based on statements the SEC alleged were “misleading”.

As a result, in its own reply the SEC requested the court issue a higher civil penalty amount.

A hearing on the matter was held in late September, wherein the court didn’t explicitly side with either party.

From an October 27th order;

The Commission requests at least a $150,000 civil penalty because the “weight of evidence establishes that Ward’s misconduct warrants a third-tier penalty.”

Adjusted for inflation, the maximum penalty amounts for a violation of 15 U.S.C. § 78u(d)(3) by a natural person follow: The first-tier penalty maximum is $11,823. The second-tier penalty maximum is $118,225. The third-tier penalty maximum is $236,451.

Much of the hearing involved Ward attempting to explain the misleading statements that he filed in response to the Commission’s motion. For instance, Ward’s response argued that during a prior proceeding the Court recognized that he did not act with intent to defraud.

This is not true, and the Court explained this to Ward at the hearing.

Moreover, Ward was asked about misrepresentations involving his excerpts from his partner’s deposition.

Ward blamed this on the fact that he is not a lawyer. Ward explained that he uploaded the deposition into ChatGPT, and it provided the excerpts that he gave to the Court.

After considering the arguments, the Court finds that the Commission has failed to adequately substantiate with evidence that a third-tier penalty is warranted.

Based on the evidence before the Court, an $85,000 penalty is warranted. The Court finds that two factors particularly relevant: (1) repeated violations and (2) degree of scienter.

First, the fact that Ward has engaged in other conduct in violation of SEC regulations warrants consideration.

Specifically, Ward admitted to engaging in a Ponzi scheme soliciting over $20 million.

Ward settled JetCoin fraud charges with the CFTC in 2023. Penalties remain pending, owing to a previously granted stay on CFTC proceedings in early 2022.

And Ward later advised a colleague to destroy evidence in response to a subpoena from the FTC relating to the Ponzi scheme.

Second, the Court does not find credible Ward’s attempts to minimize his degree of scienter.

Ward alleges that he merely repeated the information provided by his partners. But this allegation contradicts the evidence before the Court.

As a result of Ward’s misrepresentations, the Court questions his credibility on all of his evidence of mitigation. This includes his alleged ability to pay a fine.

Further, the Court considers that Ward received a management fee from Apex and that Ward kept $14,000 from an investor.

Considering all of the relevant factors, the Court assesses a civil penalty of $85,000 against Ward.

Ward’s $85,000 civil penalty was made final in an October 28th filed Final Judgment. The judgment brings the SEC’s Apex Financial proceedings against Ward to a close.