U.S. SEC Charged Michael Scronic with Fraud

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.