Scam Alert- $30 million defrauding from crypto Ponzi victims in the UAS

Michael Ackerman, a Crypto Ponzi scammer from Ohio

Ohio guy has promised to return $30 million in Crypto Ponzi victims. According to the US Department of Justice, the guy behind a multimillion-dollar cryptocurrency scheme pled guilty to fraud.

It should be noted that Strauss admitted to forging documents to convince investors of his $ 315 million balance. The fund’s balance was never greater than $5 million, according to the Department of Justice.

According to the lawsuit, Ackerman used $9 million in investor cash to “finance a lavish lifestyle”. Also, including real estate, jewelry, cars, travel. And personal protection services.

The 52-year-old confessed to wire Cryptocurrency fraud and agreed to pay at least $30M in restitution and forfeit $36M in cash. Real estate and also jewelry were obtained illegally. On Jan 5, 2022, Ackerman will be sentenced.

The Securities and Exchange Commission charged him with violating securities laws in February 2020. It is noteworthy that he allegedly targeted the doctors of that time through a secret Facebook group called “Physicians Dads.“

As part of a trio, Ackerman, a former New York Stock Exchange institutional broker, collaborated with James Seijas. A former Wells Fargo financial counselor and surgeon Quan Tran.

Victims of the scam sued Wells Fargo in April 2020. Alleging that the bank failed to examine the conduct of one of its employees.

Antidolos ICO scam alert will tell you more about Crypto Ponzi victims.

Crypto Ponzi victims scheme file a class-action lawsuit against Wells Fargo

Wells Fargo is being sued by victims of a $35M Cryptocurrency Ponzi scam for failing to enforce reporting duties on a co-masterminding employee.

The Q3 Investment Recovery Vehicle (Q3IRV) has filed a class-action lawsuit against Wells Fargo Advisors on behalf of more than 100 victims of the alleged $35M Crypto Ponzi victims scam.

According to the lawsuit, Wells Fargo failed to investigate the conduct of an employee suspected co-conspirator in the scheme.

According to the plaintiffs. The Wells Fargo subsidiary failed to conduct adequate investigations into its financial advisor James Seijas, despite the firm’s policy requiring workers to disclose actions regularly.

Crypto Ponzi victims’ schemes are suing Wells Fargo for vicarious responsibility

For Seijas’ conduct and omissions, IRV is also claiming damages and interest as vicarious responsibility.

Despite the firm’s policies for employees. The plaintiffs claim that Wells Fargo didn’t investigate Siejas’ role as Crypto Ponzi victims while he ran the scheme: “Wells Fargo Advisors’ rules and procedures required employees to disclose work they conducted outside the scope of their job regularly.“

“The actions and omissions detailed herein committed in his position as an agent for Wells Fargo Advisors”. Also, according to the lawsuit because Seijas promoted himself as an investor working on behalf of Wells Fargo while working for the company.

Wells Fargo Advisors is also accused of undue enrichment, carelessness, and fraud in the complaint.

Seijas spent five years with Wells Fargo Advisors

According to the complaint, Siejas founded the Trading Club in 2017 with other co-founders Quan Tran. A licensed general surgeon, and also Michael Ackerman, a former UBS securities employee.

Advertised the scam to physicians on social media, including a Facebook group named “Physicians Dads’ Group”. Intending to pool investor funds to trade crypto assets using a proprietary algorithm.

According to the lawsuit. Crypto Ponzi victims formed a limited partnership after obtaining more than $1M and expanded to take in $33M from 150 investors across the United States. According to IRV, just $10M of the funds invests in virtual currencies. Besides the rest diverted to other uses.

Despite Defendants’ claims to potential and existing investors that their virtual currency trading was very profitable. Also, investors were free to withdraw the earnings in their accounts after one year, the lawsuit states.

According to the plaintiffs. Operators also siphoned $4M in alleged licensing payments for access to their proprietary algorithm into their bank accounts.

The SEC, Crypto criminals, and dev assistance

The Securities and Exchange Commission (SEC) has accused a gang of criminals of raising more than $30 million through a fake initial coin offering.

The SEC’s Investor Education and Advocacy wing issued a new warning on January 14, encouraging Americans to consider initial coin offerings.

In addition to cracking down on heists, Commissioner Hester Peirce (a.k.a. “crypto mom“) is working on a new proposal to provide a safe harbor for future Blockchain networks and tokens that want to avoid being classified as securities.

According to Ackerman and partners, it reportedly converted only a portion of investors’ money contributions to Cryptocurrency. Held in an offshore digital currency trading platform registered in the British Virgin Islands.

The 3 partners accuse of pocketing large license payments without informing investors. As of March 2018. Ackerman is also accused of deceiving his founding partners about the Crypto Ponzi victims. Between March 2018 and December 2019, he is accused of personally enriching himself by spending $7.5 million in investor cash on a home, costly jewelry, several cars, and personal security services.

The SEC seeks a permanent injunction, disgorgement with pre-judgment interest, and a civil penalty against Ackerman for these alleged violations.

According to reports. The US Attorney’s Office for the Southern District of New York and the Commodity Futures Trading Commission has filed charges against him for his alleged activities.

Sum-up about Crypto Ponzi victims

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References:
https://cointelegraph.com/news/q3-cryppto-ponzi-victims-file…
https://infinityweb.co.in/ohio-man-pleads-guilty-to-fraud…
https://flipboard.com/article/ohio-man-pleads-guilty-to-fraud…