SEC Charges 3 Individuals in $2.9 Million Fraud Scheme for Impersonating Financial Professionals

The U.S. Securities and Exchange Commission (SEC) has announced charges against three individuals for fraud, involving the impersonation of legitimate securities brokers and investment advisers in an elaborate online scheme that defrauded at least 28 investors of more than $2.9 million.

According to the SEC’s complaint, from 2019 to the present, the defendants Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze, all residing in Nigeria, created websites impersonating nearly two dozen actual securities brokers and investment adviser representatives at well-known U.S. securities firms. This scheme was designed to lure potential investors in the United States to invest funds with the defendants. The defendants allegedly posted fictitious client testimonials on social media and in investment group chats to praise the representatives' trading success, further enticing victims.

The complaint further alleges that the defendants promised monthly returns of up to 25% and directed investors to fake online investment platforms to create the illusion that their portfolios were increasing in value. Additionally, the defendants used voice-changing software to speak with investors, as most of the impersonated professionals were women.

“Today’s charges highlight how fraudsters can manipulate online information and use technology to gain trust with investors,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “We caution the investing public to be on heightened alert when investing with someone who is soliciting investments through social media, even if that person appears to be a financial industry professional.”

The SEC is seeking permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties against all defendants. In a parallel action, the United States Attorney’s Office for the District of New Jersey has announced criminal charges against Onyeachonam, Asiegbu, and Nweke-Eze.

BrokersView advises investors to independently verify the credentials of investment professionals and not rely solely on customer reviews or testimonials. Avoid using the contact information provided by unsolicited persons claiming to be professionals. Be cautious if someone prefers to communicate through Telegram, WhatsApp, or a suspicious email address.