SEC charges operators of fake day-trading firm with defraudingStaff Writer |
Inexperienced Investors Naris Chamroonrat and Adam L. Plumer
The Securities and Exchange Commission (SEC) charged two men behind a phony day-trading firm with pocketing more than $1.4 million in deposits from hundreds of defrauded investors worldwide.
According to the SEC’s complaint, rather than using a live securities trading platform, Nonko Trading provided certain investors with training accounts that merely simulated the placement and execution of trade orders.
So when these investors sent funds to Nonko Trading and proceeded to place trade orders, they were never actually routed to the markets.
The SEC alleges that investor money was instead used to fund Chamroonrat’s personal expenses, pay Plumer and other associates, and make Ponzi-like payments to investors who asked to close their accounts.
According to the SEC’s complaint, the scheme deliberately targeted investors who were inexperienced and more likely to place unprofitable trades, making them less likely to ask to withdraw funds from their accounts.
In a parallel action, the U.S. Attorney’s Office for the District of New Jersey today announced criminal charges against Chamroonrat.
The SEC is seeking injunctions and the disgorgement of ill-gotten gains plus interest and penalties. ■
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