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

Return to Archive

TESTIMONIALS

Previous
Next

I cannot thank you enough for your efforts. You have proven to be a valuable resource

Jim T.

LATEST NEWS AND ARTICLES

April 30, 2025
Cambridge Investment Research Advisors to Pay $15 Million Fine Over Undisclosed Conflicts in Investment Recommendations

Cambridge Investment Research Advisors (CIRA) has agreed to pay $15 million to settle allegations brought by the Securities and Exchange Commission (SEC), which accused the firm of failing to disclose multiple conflicts of interest in its investment recommendations.

April 29, 2025
Merrill Lynch Fires Veteran Advisor for Ignoring Mandated Commission Discounts

Merrill Lynch has terminated Daniel G. Diaz, a 37-year industry veteran, for refusing to apply commission discounts to certain client accounts as instructed by management, according to his Central Registration Depository (CRD) record.

April 28, 2025
Former Morgan Stanley Advisor Barred After Fraudulent Check Allegations

Roger A. Gallagher has accepted an industry bar from FINRA rather than cooperate with a regulatory investigation. According to a FINRA Acceptance, Waiver, and Consent letter (“AWC”).