United States – The Securities and Exchange Commission or SEC of the United States busts Elite Generators and Avail Progression schemes after scamming more than 100 investors. The Ponzi scheme operators didn’t invest the proceeds.
SEC brought charges against John Fernandez, 26 years old, along with two companies, such as Elite Generators and Avail Progression. Fernandez operated two unregistered and fake Forex exchanging schemes. As per the official charges on Friday, December 16, Fernandez has been alleged of defrauding over 100 investors after raising more than $4.3 million.
Fernandez from Texas didn’t have professional exchange experiences. However, he convinced the victims of his Ponzi schemes, wherein he told the investors that he traded savant with a guaranteed track record. He also said he can return 100% of their investments in the Forex market, like other fraudulent scams. He gave documents, mentioning how much the investors will get in return, and when they will receive it.
On the other hand, Fernandez didn’t invest the proceeds for exchanging Forex tools. He utilized the money for payments and his lifestyle. He also created excuses when investors contacted him for overdue investment returns.
The scammer began the Avail Progression scheme first before transitioning to Elite Generators when he didn’t have enough funds in the initial scheme. He conned investors with both scams. The SEC charged him with violating the securities registration provisions and the antifraud act of the US government, along with two companions.
The regulator is looking for lasting rulings against the scammer, as well as civil fines against defendants. Moreover, the chargers look forward to banning Fernandez from being an officer of any public company.
The SEC previously charged eight famous personal funding influencers for the $100 million scam. The demand in the exchange market grew in the previous years, yet investment scams also grew.
On another note, the EUR/USD exchange has not yet reached the oversold zone in the Forex market. The price went under pressure in recent days after the increase in the interest rates by ECB and the Fed.
On the bearish view, the pair had a profit of 1.0500 in one to two days, adding a stop-loss at 1.0700. On the bullish view, the buy-stop sits at 1.0600 while the take-profit is at 1.0700.
The price of the EUR/USD pair in the Forex market pulled back a bit after the recent decision regarding the interest rate by ECB or European Central Bank and the Fed or the Federal Reserve. It may have decreased to 1.0587, which was lower compared to the 1.0738 of last month. The price stayed a few points over the low of 1.0460 this month.