SEC Charges Nigerian Trio for Impersonating Financial Professionals in $2.9 Million Fraud Scheme

Posted on January 15th, 2025 at 2:29 PM
SEC Charges Nigerian Trio for Impersonating Financial Professionals in $2.9 Million Fraud Scheme

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has charged three individuals from Nigeria with orchestrating an elaborate online fraud scheme, stealing the identities of licensed financial advisors and investment advisers to defraud retail investors of over $2.9 million.

According to the SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, the defendants impersonated at least 22 financial professionals and deceived at least 28 investors, the majority of whom reside in the United States. According to InvestmentNews, the scheme began in 2019, involving fake websites that mimicked legitimate U.S. securities firms and included falsified testimonials on social media and investment forums. These fraudulent sites portrayed the impersonated professionals as successful traders and promised victims monthly returns as high as 25 percent.

To further the scheme, InvestmentNews reports that the defendants directed victims to fake investment platforms that simulated growing portfolio values. They also instructed investors to purchase and send cryptocurrency, such as Bitcoin, while claiming to use a copy-trading platform that mirrored the trades of professional advisors. To gain additional trust, they reportedly used voice-masking software to impersonate individuals matching the gender of real financial professionals.

The SEC has charged the defendants with violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The charges seek permanent and conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties.

InvestmentNews reports that the U.S. Attorney’s Office for the District of New Jersey has also filed criminal charges against the defendants.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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