The Securities and Exchange Commission (SEC) said Diana Mae Fernandez, a “self-described entrepreneur,” made “fraudulent securities offerings” by saying she would use customers’ money to invest in cryptocurrencies, among other things, and instead pocketed the money.
Fernandez, 37, promised high returns of up to 63% by claiming to invest clients’ money in cryptocurrencies, private and public companies, and luxury real estate, the SEC said in a filing posted Thursday. she she It raised about $364,000 from at least 20 investors through two “alter ego entities,” “The Self-Made Success” and “Diana Mae K., LLC,” the entities filed Dec. 21 in the Upper Western District. It was stated in the complaint. girl name.
Fernandez recruited many investors through entrepreneur-focused church groups and social networking, the SEC added.
“Rather than investing investor funds as promised, Fernández mixed investor funds with his own funds to pay for everyday living expenses and luxury hotel stays, financed numerous cash withdrawals, and made Ponzi-like payments to former investors,” the SEC said. said in the complaint:
Exterior
The former New Jersey resident told potential investors he had more than 15 years of investment experience and had raised $100 million in 25 countries, a claim the SEC said was false. She also instructed her investors to wire money directly to her own bank account or send the funds through her PayPal, the SEC said.
“Fernández exercised sole control over these accounts, but instead of using the promised funds, he used most of the investor profits for personal gain and used the remainder to make Ponzi payments to investors to enable the fraud to continue,” the agency said. said. .
Fernandez also spent investors’ money on trips to Barcelona and Paris, including a $2,000 purchase at the Apple Store, the agency said.
criminal charges
Fernandez was indicted by U.S. prosecutors on investment fraud charges in July. name From the Ministry of Justice.
The Justice Department said, “Multiple victims, including one from Marion County, West Virginia, invested a total of over $300,000.” “When it came time for Fernández to make a return on his investments, he made false claims as to why he could not pay dividends and then used investors’ money for his own benefit.”
Prosecutors said Fernandez was arrested in Serbia and could face up to 20 years in prison on each of the five charges.
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