SEC-PR-2412-194

As alleged in the SEC’s complaint, from at least 2019 to the present, the three defendants, who reside in Nigeria, created websites impersonating nearly two dozen actual securities brokers and investment adviser representatives (collectively, representatives) at well-known U.S. securities firms as part of a fraudulent scheme to entice potential investors in the United States to invest funds with the defendants. The defendants allegedly lured investors to the websites by placing fictitious comments from purported clients on social media and in investment group chats praising the representatives’ trading success. The SEC’s complaint alleges that the defendants promised monthly returns of up to 25 percent and directed investors to fake online investment platforms they created to make investors think their portfolios were increasing in value. In addition, according to the SEC’s complaint, the defendants purchased voice changing software to talk to investors, as most of the impersonated professionals were women.

“Today’s charges highlight how fraudsters can manipulate online information and use technology to gain trust with investors,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “We caution the investing public to be on heightened alert when investing with someone who is soliciting investments through social media, even if that person appears to be a financial industry professional.”