Discovery of Florida Ponzi Scheme Was in the Stars
The Securities and Exchange Commission (“SEC”) has charged former broker Gurudeo “Buddy” Persaud of Orlando, Florida with operating a Ponzi scheme. According to the SEC, between July 2007 and January 2010, Persaud persuaded at least 14 investors to invest more than $1 million in his firm White Elephant Trading Company LLC.
The SEC’s Complaint alleges that Persaud falsely guaranteed the safety of investor funds and promised a 6 to 18 percent return. The SEC charges that Persaud failed to inform investors that his trading strategy was based entirely on his belief that the direction of the stock market could be predicted based on lunar cycles and gravitational pull. The SEC claims that Persaud believed that astrological forces impact mass human behavior, which in turn affects the financial markets.
According to the SEC, Persaud used later investors’ funds to pay earlier investors in typical Ponzi fashion. The SEC also claims he lost $400,000 of investor funds as a result of his astrology-based trading strategy, and used at least $415,000 of investor funds to pay personal expenses. In addition, the Complaint alleges that Persaud created fictitious account statements to hide the trading losses and missing funds.
Investors nationwide who have been the victims of a Ponzi scheme, may contact the Florida securities arbitration lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.