Mon, June 05, 2023

SEC Seizes $4.3 Million FX Ponzi Schemes

Broker News

The Securities and Exchange Commission (SEC) recently filed charges against John Fernandez, 26 years old, and his two companies – Avail Progression and Elite Generators – for functioning with unregistered and fraudulent forex trading plans.

Last Friday, the official charges revealed that Fernandez and his businesses had allegedly defrauded more than 100 investors out of an estimated $4.3 million.

A Texan resident, Fernandez had zero trading expertise. Nevertheless, he lied to his victims that he was a “trading savant” and could guarantee up to 100% returns based on the foreign exchange markets thanks to his skilful techniques.

Similar to other deceitful investing schemes, he promised returns for his investors. Furthermore, the offering documents he supplied noted the money due and when it would be dispensed.

SEC has taken legal action against fraudulent Ponzi schemes that have defrauded investors of an estimated $4.3 million.

Nevertheless, Fernandez did not invest the capital earned from trading forex in instruments. Instead, he utilized it for Ponzi payments and misappropriated it to finance his indulgent living habits. To compound matters even further, he conjured up various excuses when investors approached him regarding overdue returns.

After commencing his Avail Progression venture, he quickly moved on to Elite Generators when resources ran dry. To the dismay of many investors, he employed fraudulent strategies across both companies.

The SEC has now taken action against Fernandez and his two companies for infringing the US securities act’s antifraud and registration regulations. The regulator demands permanent injunctions of the accused, civil penalties, disgorgement of ill-gotten profits, and prejudgment interest from each defendant. The chargers also seek to prohibit Fernandez from becoming an executive or director of any public company.

SEC Takes Aim at Curbing Ponzi Schemes

Lately, the trading market has seen a tremendous surge in demand, which unfortunately created an ideal situation for investment scams. To combat this trend, the SEC recently took action against eight popular personal finance influencers and two cryptocurrency Ponzi schemes accused of participating in a $100 million pump-and-dump scheme.

This landmark move demonstrates that they will not tolerate such malicious activities among investors to maintain trustworthiness in investments and protect people’s hard-earned money.

Simultaneously, Spanish law enforcement apprehended a key figure of the EverFX hedge fund in Europe.


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