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The Securities and Exchange Commission (SEC) has introduced charges towards Diana Mae Fernandez, a 37-year-old self-proclaimed entrepreneur, for orchestrating a fraudulent funding scheme. Fernandez, previously a New Jersey resident, deceived traders by promising astronomical returns, generally as excessive as 63%, via investments in varied sectors, together with cryptocurrency, actual property, and personal and public corporations.

SEC Reveals Misuse of Investor Funds

Fernandez succeeded in elevating roughly $364,000 from no less than 20 people. She operated via two entities, “The Self-Made Success” and “Diana Mae K., LLC.” These operations had been completely different from what they appeared. Instead of channeling the funds into the promised investments, Fernandez used the cash for her extravagances. She paid for her day-to-day dwelling bills, indulged in lavish lodge stays, and even funded journeys to glamorous locations like Barcelona and Paris.

The SEC’s litigation launch reveals the extent of Fernandez’s deceit. She touted over 15 years of funding expertise and claimed to have raised $100 million in 25 international locations. These claims, the SEC asserts, had been fully false. 

Additionally, Fernandez had a particular strategy to amassing funds, urging traders to wire cash on to her checking account or ship funds through PayPal. This allowed her full management over the funds, which she predominantly used for private acquire, with a small portion allotted to pay earlier traders in a typical Ponzi-like style.

Legal Repercussions

Fernandez’s actions didn’t go unnoticed by authorized authorities. In July, U.S. prosecutors charged her with funding fraud. The Justice Department’s assertion highlighted that victims, together with one from Marion County, West Virginia, invested over $300,000. Fernandez’s failure to ship the promised returns and her subsequent misuse of traders’ cash led to her arrest in Serbia. She now faces a possible sentence of as much as 20 years in jail for every of the 5 counts towards her.

The SEC’s motion towards Diana Mae Fernandez underscores the continued vigilance required within the funding world, particularly regarding high-yield guarantees. Investors are suggested to train warning and conduct due diligence earlier than entrusting their funds to any funding enterprise.

Read Also: Coinbase Restricts Trading Leverage to Enhance Stability

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Kelvin is a distinguished author specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive evaluation and insightful content material, he has an adept command of English and excels at thorough analysis and well timed supply.

The introduced content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.