SEC Puts an End to a $125 Million Investment Scam
A statement released by the Securities and Exchange Commission (SEC) announced that it has taken legal action against Mediatrix Capital Inc. because of the company's more- than- suspicious activities concerning international forex frauds. SEC has obtained a temporary restraining order against the firm and has frozen the assets of three individuals behind the scams.
The regulator has accused Mediatrix Capital Inc’s three patrons, Michael S. Young, Michael S. Stewart, and Bryant E. Sewall, of soliciting a trading program that has cost traders more than $125 million.
Allegedly, Mediatrix Capital Inc is a Trading Advisor of spot Forex and over-the-counter Forex options. The Securities and Exchange Commission claims that the company lured investors by promising them that their money will be invested via a “highly profitable algorithmic trading strategy that had never experienced an unprofitable month and had returned more than 1,600 percent since inception”.
Furthermore, the US commission states that the accused used botched account statements, reassured users by paying them using the controversial Ponzi scheme (which sees that investors are payed with money received from more recent investors, and so on, misleading users into thinking that the profits are coming from the algorithmic trading). Mediatrix Capital Inc is also accused of misusing more than $35 million of investor money for their own luxurious uses, such as the purchasing of high-class automobiles and property.
This is reminiscent of the CFTC bust that shook the US Forex world. It seems that scams are adapting and evolving, which leads to the question as to the next inevitable one.