The Securities and Exchange Commission (SEC) has introduced charges in opposition to 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, typically as excessive as 63%, by way of investments in varied sectors, together with cryptocurrency, actual property, and personal and public firms.
SEC Reveals Misuse of Investor Funds
Fernandez succeeded in elevating roughly $364,000 from at the very least 20 people. She operated by way of two entities, “The Self-Made Success” and “Diana Mae K., LLC.” These operations have 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 residing bills, indulged in lavish resort 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, have been completely false.
Additionally, Fernandez had a particular method 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 achieve, 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 in opposition to her.
The SEC’s motion in opposition to 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.
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