On 5 October, SEC charged Scronic for IA Ponzi-like scheme.
- SEC charged Scronic for alleged lying to retail investors.
- Ponzi-like scheme of Falsifying Options Value.
- 42 friends and acquaintances lost over $21 Million.
- Scronic alleged scheme operated between 2010 -2017.
- SEC’s NY ARD Mehraban said,
- “Investors should be wary of complex, hard to understand investment strategy.”
- Investors can check backgrounds on investor.gov
- SEC also alleges Scronic created a false hedge-fund.
- U.S. SD of NY Attorney's Office also charged Scronic.
- SEC's charges Scronic with violating;
- Section 17(a) of 1933 Securities Act;
- Section 10(b) of 1934 Exchange Act,
- Rule 10b-5 thereunder,
- IA 1940 Act Sections 206(1), 206(2), and 206(4),
- Rule 206(4)-8 thereunder.
- The SEC sought a permanent injunction,
- disgorgement, and penalties against Scronic.
- The SEC's investigation was conducted by;
- Lindsay S. Moilanen, Daphne Downes, and Sheldon L. Pollock.
- Case was supervised by Ms. Mehraban.
- Litigation will be led by Nancy A. Brown and Ms. Moilanen.
Written by ILG
