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SEC accused Mediatrix Capital of $125 mln Ponzi scheme

Sep 19 2019
By
Jonathan Smith

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.

 

The defendants also made some Ponzi payments to investors in an attempt to conceal the losses, SEC also said in its complaint filed with the Federal Court in Denver.

 

On their homepage Mediatrix Capital advertises their business as “an industry leading independent trading advisor of foreign currency FX spot and OTC FX options.”

 

Mediatrix Capital operated under the jurisdiction of the Bahamas.

TAGS: SEC  Ponzi scheme  forex  forex options  USA 
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