US Charges Unlicensed Broker With Defrauding 20 Investors Of Over $2Mln - Regulator

WASHINGTON (UrduPoint News / Sputnik - 29th July, 2021) An unlicensed US securities' broker faces fraud charges for raising more than $2 million from novice investors and promising to more than double their returns, the Securities and Exchange Commission (SEC) said on Wednesday.

"The SEC's complaint, filed in the US District Court for the Western District of Michigan, alleges that [Joshua] Rupp engaged in a fraudulent investment scheme from January 2018 through July 2019, which included misstatements, false documents and misappropriation of investor funds," the regulator said in a press release.

According to the complaint, Rupp raised over $2.2 million from about 20 investors who lacked significant investment experience by misrepresenting that he was a licensed securities professional, he would generate profits for investors by trading on their behalf and investors' principal was protected from losses, the release said.

In the process, Rupp provided false account statements and trading data to make it appear that his trading was generating returns as high as 115 percent, the release also said.

Instead, investors lost most of their money, including retirement funds, through Rupp's fraud, the release added.

The SEC complaint charges Rupp with violating anti-fraud provisions of the Federal securities laws and seeks disgorgement of ill-gotten gains plus interest, a penalty and injunctive relief, according to the release.