On September 11, 2023 the Securities and Exchange Commission filed a lawsuit in the United States District Court for the District of Minnesota, alleging that Phoenix Asset Group and its owner, Robyn Bowman, operated a Ponzi scheme while obtaining $2.7 million from investors on the pretext that it would be used to buy portfolios of bad debts.  About $860,000 of the money was actually used to pay for Bowman's personal expenses, including a home, cars, and credit cards, and expenses of her family.  The money was raised by issuing promissory notes to investors.  Between 2018  and 2020, the company raised $2.7 million by selling the notes to at least 20 investors. Investors were told that returns would be as high as 15%.

New investor money was used to make payments to earlier investors.

In April 2020, the company told investors that it would stop making the required interest payments, blaming the COVID-19 pandemic.  Investors lost nearly $2 million, according to the SEC