SEC accused Mediatrix Capital of $125 mln Ponzi scheme

M

mlawson71

Mediatrix Capital, which claimed that its clients profited for 5 consecutive years without a single monthly loss, and which also was awarded as the Best Family Office Asset Manager in Monaco, is now been accused by U.S. Securities and Exchange Commission (SEC) of running a Ponzi scheme.

SEC announced that it had obtained a temporary restraining order and an emergency asset freeze against three Mediatrix Capital principals to stop a Ponzi like international trading program with more than 125 million USD of investors money at stake.

According SEC since March 2016 Mediatrix Capital and its principals Michael Young, Michael Stewart and Bryant Sewall attracted investors money by claiming to invest them in an algorithmic trading strategy, that had returned over 1600% since December 2013.

SEC however reveals that the strategy caused loses of more than 18 million of investors money in 2018 alone, while the defendants stole another 35 million USD for their personal expenses.
 
taowave said:
1600% return percent in algorithmic trading over 6 years???

Sounds about right..

No need to check under the hood on that one
More...
:D

Few months ago :

....A new client , with functioning brain comes to meeting...
....So please , tell me, what is your approach to markets guys ?...
....At Mediatrix Capital we do algor - .....

tenor.gif
 
What is strange is that they advertised managed accounts. How did they manage to steal from such accounts? Also, clients get daily statements from the broker. Just really weird story.
 
RedDuke said:
What is strange is that they advertised managed accounts. How did they manage to steal from such accounts? Also, clients get daily statements from the broker. Just really weird story.
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It was OTC FX vol, so they could print fake account statements. IOW, there were no exchange-traded products changing hands here.
 
RedDuke said:
What is strange is that they advertised managed accounts. How did they manage to steal from such accounts? Also, clients get daily statements from the broker. Just really weird story.
More...

Peregrine Financial Group was a fully regulated (NFA/CFTC) futures broker and still stole from clients. Faked a few bank documents for several years & regulators didn't bother to check with the bank to see if they were accurate. Client account statements (trading activity) were accurate but the money (client funds) wasn't in the bank.

https://www.forexfraud.com/news/peregrine-financial-group-major-scam-u-s-forex-futures-market
 
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