(Reuters) – Mediatrix Capital stated its shoppers went 5 years with no single month-to-month loss. It stated it gained an award as high international asset supervisor for its returns over that point. A gaggle in Monaco declared Mediatrix the Greatest Household Workplace Asset Supervisor.
The U.S. Securities and Change Fee calls Mediatrix a Ponzi-like fraud.
In an announcement on Wednesday, the SEC stated it obtained a brief restraining order and emergency asset freeze towards three Mediatrix principals to cease a fraudulent worldwide buying and selling program that put greater than $125 million of investor cash in danger.
The SEC stated Mediatrix and its principals Michael Younger, Michael Stewart and Bryant Sewall had since March 2016 raised cash from traders by representing that their cash could be invested in an algorithmic buying and selling technique that had returned greater than 1,600% since December 2013.
In actuality, the SEC stated the technique was a money-loser, racking up greater than $18 million of losses in 2018 alone, and the defendants diverted greater than $35 million for his or her private use, together with to purchase jewellery, three Land Rovers and greater than $12 million of actual property.
The defendants additionally made “Ponzi-like funds” to fulfill traders’ redemption requests and conceal the losses, in keeping with the SEC criticism filed with the federal court docket in Denver. The SEC is looking for civil fines and to recoup ill-gotten positive factors.
Younger has a house in Colorado, whereas Mediatrix operates below the jurisdiction of the Bahamas, the SEC stated.
Mediatrix didn’t instantly reply to requests for touch upon the defendants’ behalf. Attorneys for Mediatrix, Younger and Sewall didn’t instantly reply to comparable requests. It was not instantly clear whether or not Stewart has retained a lawyer.
On its web site, Mediatrix calls itself “an trade main impartial buying and selling advisor of international foreign money FX spot and OTC FX choices.”
Mediatrix stated Younger in June 2018 accepted an award in Monte Carlo from the Monaco Single and Multi-Household Worldwide Affiliation for Greatest Household Workplace Asset Supervisor, within the presence of “an A-list group of 400+ billionaires, sheikhs, royal households and enterprise leaders.”
In January, Mediatrix stated it had gained the High International Asset Supervisor Award for measured web returns over 5 years from Autumn Gold, a commodity buying and selling advisor data service.
The case is SEC v Mediatrix Capital Inc et al, U.S. District Court docket, District of Colorado, No. 19-02594.
Reporting by Jonathan Stempel in New York; Modifying by Cynthia Osterman