Three alleged cryptocurrency traders ran a Ponzi scheme which scammed more than 100 investors for over $35 million, based on a lawsuit filed by an entity formed by the victims in a federal court of Florida, United States.
According to a announcement published on April 2, Q3 Investment Recovery Vehicle, who represents defrauded investors, accused the trio of alleged crypto dealers of cheating victims by promising them a winning trading formula.
Former NYSE and Wells Fargo workers among the accused
The federal securities fraud case names three individuals as the primary perpetrators of the scheme. They include James Seijas, who served as a financial advisor for Wells Fargo before March 2019, Quan Tran, a surgeon, and Michael Ackerman, that was a New York Stock Exchange institutional representative. These three are deemed to have appropriated cash from 20 sufferers who relayed their complaints in the court.
The Q3 Recovery Vehicle explained the next:
“The founders claimed, fraudulently, the investments could be used to swap cryptocurrency using a proprietary and exceptionally successful algorithm developed by Ackerman.”
Less than $10 million has been used for crypto trading
According to the complaint, less than $10 million”and less than $5 million” of the accumulated investments were used for virtual currency trading. Meanwhile, the defendants allegedly misappropriated at least 20 million for their personal use.
The recovery vehicle claimed that between August 2017 and December 2019, all funds were collected to finance Ponzi scheme, including posts on a doctor-centric Facebook group.
Donna Seijas (spouse of James Seijas) and Steve Saunders, who was the vice presidents of operations for Skyway Capital Markets LLC, are also cited in the complaint.