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SEC charges two individuals for participating in a Ponzi-like scheme

 

The United States Securities and Exchange Commission (SEC) has charged two individuals working at Nonko Trading with fraud on Wednesday. More specifically, the SEC alleges that Jeffrey Goldman and Christopher Eikenberry, both from Michigan, participated in a Ponzi-like scheme and pocketed over $1.4 million from more than 260 investors worldwide.  

 

Nonko marketed itself as a state-of-the-art platform for day-traders. However, according to the SEC, the company secretly provided customers with accounts that only mimicked actual trading. Victims, who were mostly inexperienced traders, believed that deals were real, but in fact their trades were never sent or executed in the market. 

 

As with other Ponzi-like schemes, the fraudsters allegedly pocketed money from the day traders and used it to fund their own lifestyles. They also made other Ponzi-like payments to those investors who asked to close their Nonko accounts.

 

Furthermore, the Chief of the SEC Enforcement Division’s Market Abuse Unit said that the two men from Michigan took steps to evade U.S. broker-dealer registration requirements. Of course, the SEC is seeking injunctions and the disgorgement of their allegedly ill-gotten gains, plus interest and penalties. 

 

The SEC has previously charged four other individuals and two entities in connection with the Nonko fraud. Two of those individuals, Naris Chamroonrat and Adam Plumer, have settled the SEC’s charges. Criminal charges against two other individuals charged by the SEC, Yaniv Avnon and Ran Armon, are still pending.  

 

TAGS: SEC  USA  US  Nonko trading  Ponzi 
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