U.S. Securities and Exchange Commission Litigation Release No. 26194, dated December 12, 2024.
The SEC charged three Nigerian individuals with fraud for impersonating financial professionals and stealing over $2.9 million from at least 28 investors through an elaborate online scheme. They created fake websites, promised high returns, and used voice-changing software to deceive investors.
In Plain English
Imagine someone pretending to be a trusted financial advisor online. These individuals created fake websites and social media posts to trick people into giving them money. They promised huge profits, like getting 25% back every month, and even used fake investment platforms to show fake growth. They also used voice-changing software to sound like different people. In the end, they stole millions from people who thought they were investing safely.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Impersonate Professionals Starting as early as 2019, the defendants created websites that looked like those of legitimate U.S. securities brokers and investment advisers. They impersonated nearly two dozen real professionals at well-known firms to appear credible.
- Lure Investors with Fake Praise To attract potential investors, the defendants posted fake comments on social media and in investment group chats. These comments praised the supposed trading success of the professionals they were impersonating.
- Promise Unrealistic Returns The defendants enticed investors by promising incredibly high monthly returns, reportedly up to 25 percent. This 'too good to be true' offer was a key part of their strategy to lure victims.
- Direct to Fake Platforms Investors were instructed to send their funds to fake online investment platforms that the defendants had created. These platforms were designed to show investors that their portfolios were increasing in value, encouraging further investment.
- Use Voice-Changing Software To further their deception, especially when impersonating female professionals, the defendants purchased and used voice-changing software during calls with investors. This added another layer to their elaborate impersonation scheme.
- Misappropriate Funds The defendants instructed investors to purchase crypto assets on platforms they controlled, which the defendants then misappropriated. Any funds sent to the fake investment platforms were also stolen.
- Demand Fees for Fund Release When investors eventually tried to withdraw their money, the defendants falsely informed them that additional fees were required before the funds could be released, effectively holding the investors' money hostage.
- Steal Millions Through this elaborate scheme, the defendants successfully stole at least $2.9 million from at least 28 investors, most of whom were based in the United States.
The Enforcement Action
SEC Charges Three Individuals with Impersonating Financial Professionals in Fraud Scheme Targeting Retail Investors. The Securities and Exchange Commission charged Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze with fraud for impersonating legitimate securities brokers and investment advisers in an elaborate online scheme through which the defendants stole more than $2.9 million from at least 28 investors. The SEC’s complaint seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties against all defendants. In a parallel action, the United States Attorney’s Office for the District of New Jersey announced criminal charges against Onyeachonam, Asiegbu, and Nweke-Eze.