SEC, SDNY and CFTC booked another crypto fraudster for $33 million fraud


The U.S. Securities and Exchange Commission
(SEC) and the US Attorney for the Southern District of New York (SDNY) and
Commodity Future Trading Commission (CFTC) have booked Ohio based Michael
Ackerman and his two anonymous partners in case of duping more than 100
investors.
Michael
Ackerman allegedly lured some 150 investors by offering them lucrative profits
through cryptocurrency-based schemes.
The SEC in its Press release on 11
February, Tuesday reveals that the accused and his partners operated of Q3
Trading Club and Q3 I LP, through which they raised $ 33 million. Michael
Ackerman promised the investors that they are developing an algorithm that will
generate profits through the trading of cryptocurrencies.
Furthermore, Ackerman falsified the data to
mislead the investors that he was generating profit. He also claimed through
the duplicate documents that he has a balance of $315 million worth of cryptocurrencies,
which was just half a million dollars in reality. He also deceived the
investors by using $ 7.5 million dollars from Q3 account for his personal use
which was investors’ money.
He misused millions of dollars for
purchasing expensive jewelry, luxurious cars, hiring high-level security for
and in buying real estate.
Several duped investors are from the Medical
profession and they had been exploited out of their ignorance and interest in
digital assets.
The SEC has charged Ackerman under
injunction and disgorgement as well as civil penalty whereas the SDNY office
has filed a case of money laundering against him which can put him behind bars for
20 years.

Jayashree Ingle
CBW - External Analyst
INDIA