One of Minnesota's most prominent horse-racing families has been accused of bilking nearly $18 million from 200 investors as part of a long-running Ponzi scheme.
Shakopee residents Jason D. Bullard, and his wife, Angela Romero-Bullard, were accused this week of running a fraudulent investment business by the U.S. Securities and Exchange Commission. The SEC said the couple operated the Ponzi scheme from 2007 to 2021.
The Bullards own Empire Racing Stables LLC, a 24-horse operation that has been one of the top winners at Canterbury Park in recent years.
This year, Empire's horses have won 23 races and collected $366,425 in purse earnings, ranking second among all owners, according to course officials. Empire shared top ranking in 2019, with 32 wins and earnings of $471,088.
The Bullards did not respond to requests for comment. Minneapolis attorney Randy Sparling, who is representing Jason Bullard, said his client is cooperating with authorities.
"We are not making any admissions or denials in terms of what has happened," Sparling said.
According to the SEC complaint, the Bullards told investors they could earn annual returns of 10% to 12% by putting their money into two family-controlled funds used to trade foreign currencies. However, the SEC said Jason Bullard "admitted that he has not traded foreign currencies with investor funds since approximately 2015."
Instead, the agency alleged the Bullards used most of the money to keep the Ponzi scheme running or for personal uses, including making car payments and covering other living expenses. They also used some of their funds for their racing business and other unrelated ventures, including DLJ Real Estate LLC and Empire Investments LLC, the SEC said.
A large portion of the investors' money was used to cover the Bullards' own trading losses, according to the complaint. In 2019, for instance, the Bullards lost $744,218 on total trading activity of $1.1 million.
Jason Bullard, who is 57, worked as a licensed securities broker from 2000 to 2004.
In addition to their racing business, the Bullards operate Nite Trane Transportation, which offers limousine, party bus and airport transportation in the Twin Cities, according to Canterbury Park officials. Angela Romero-Bullard, 49, also owns a fitness center, the SEC said in its complaint.
The Bullards bought their first racehorse in 2013.
"Coming to the track with friends and family, going to the paddock, and finishing it all up with a winner's circle photo never gets old," Jason Bullard said in a 2018 blog posting on CanterburyPark.com.
