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 just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.