Adviser Charged with Fraud by the SEC

Posted on September 4th, 2020 at 11:03 AM
Adviser Charged with Fraud by the SEC

From the Desk of Jim Eccleston at Eccleston Law LLC:

Steven Fitzgerald Brown, the CEO, president and sole owner of Alpha Trade Analytics, Inc., has been charged with fraud by the U.S. Securities and Exchange Commission (“SEC”). According to the SEC, Brown used Alpha Trade’s investment fund to conduct a Ponzi-like scheme. Brown has consented to the entry of a judgment which imposes a permanent injunction without admitting or denying the SEC’s allegations. The SEC is also seeking disgorgement, prejudgment interest and civil penalties.

The SEC alleged that Brown raised roughly $7.5 million from more than 75 investors. Brown is alleged to have solicited these investments by guaranteeing a payout of 8-12% per month and promising that the investment was risk free. Contrary to what investors were told, Brown invested less than 3% of investor funds in financial markets, according to the SEC. The complaint further alleged that Brown used investor funds to pay existing investors or for his own expenses.

Brown has been charged with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) and 10(b)(5) of the Securities and Exchange Act of 1934, and sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940. The U.S. Attorney’s Office in California has filed a parallel action.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Tags: Eccelston Law, Fraud, SEC, Alpha Trade Analytics

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.