Several news stories appeared this week about three Southern California mothers who allegedly used their involvement in an elementary school PTA to solicit investors in a Ponzi scheme. According to this press release issued by the Los Angeles District Attorney, more than 30 people were defrauded out of $1 million. Move over Mrs. Taylor, widow Jones and Shirley Thompson, I’m sure that Mrs. Johnson would have a few choice words for these three real-life PTA moms.

This story is a good reminder that willful violations of the Corporate Securities Law of 1968 can be prosecuted as felonies.