Three alleged cryptocurrency traders had a Ponzi scheme that scammed over 100 investors for more than $ 35 million, according to a lawsuit filed by an entity formed by the victims at a federal court in Florida, United States.
According to an announcement published on April 2, Q3 Investment Recovery Vehicle, representing scamming investors, accused the trio of alleged crypto traders of cheating victims by promising them a winning trading formula.
In the federal fraud case, three individuals are identified as the main perpetrators of the scheme. Among them are James Seijas, who worked as a financial advisor to Wells Fargo until March 2019, Quan Tran, a surgeon, and Michael Ackerman, who was an institutional broker on the New York Stock Exchange. These three allegedly appropriated money from at least 20 victims who filed their complaints with the court.
The Q3 Recovery Vehicle stated the following:
“The founders fraudulently claimed that the investments would be used to trade cryptocurrency using a proprietary and hugely successful algorithm developed by Ackerman.”
According to the complaint, less than $ 10 million, and possibly less than $ 5 million, of the investments collected were used for virtual currency trading. Meanwhile, the suspects allegedly embezzled at least $ 20 million for personal use.
The recovery vehicle claimed that between August 2017 and December 2019, all funds had been raised to fund the Ponzi scheme, including posts about a doctor-centered Facebook group.
Donna Seijas (wife of James Seijas) and Steve Saunders, vice president of Skyway Capital Markets LLC operations, are also mentioned in the complaint.