SEC v. Omar Dario Chavez — U.S. Securities and Exchange Commission Litigation Release No. 26630, dated September 4, 2026.
The SEC charged Omar Dario Chavez with fraud for allegedly taking over $940,000 from at least 16 clients, including elderly victims, to trade securities. Chavez falsely promised high returns, guaranteed client money with non-existent personal assets, and misappropriated funds for personal expenses and to pay other clients, while actually losing significant amounts through risky trading.
In Plain English
Imagine you give a friend money to invest for you, and they promise you big, guaranteed profits. This person, Omar Chavez, did just that. He told people he was making 10-20% profit each month and had millions to back it up, but he was actually losing their money and using it for himself, like paying rent and credit cards. The SEC stepped in to stop this.
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
- False Promises of High Returns Between October 2022 and March 2025, Omar Dario Chavez solicited at least 16 clients, including elderly victims, promising average monthly returns of 10 to 20 percent on their investments.
- Guaranteed Investments with Fake Assets Chavez falsely told potential clients that he would guarantee the return of their monies, claiming to have $1 million to $2 million in personal assets, which he did not possess. He even provided doctored images of his brokerage accounts to support these claims.
- Fabricated Trading Performance To maintain the illusion of success, Chavez reported fake profits to his clients on a monthly basis, luring them to invest more money. He admitted during the SEC's investigation that these reported profits were indeed fake.
- Misappropriation of Client Funds Instead of trading effectively, Chavez lost hundreds of thousands of dollars through risky day trading of short-dated options on margin. He also admitted to misappropriating client funds for personal expenses, including rent, credit card bills, and short-term loan repayments.
- Commingling and Ponzi-like Payments Chavez commingled client funds in his personal bank accounts and used these funds not only for personal expenses but also to make payments to other clients, creating a semblance of a functioning investment operation.
- Use of Unregistered Entity Chavez presented clients with 'consulting agreements' in the name of Lucky Ones, LLC, an entity he claimed was 'registered' to provide financial consulting services. He later admitted that Lucky Ones was never registered.
- False Claims of Professional Consultation To bolster his credibility, Chavez told some clients he had consulted with an attorney, a broker-dealer employee, and a CPA regarding his business operations. He admitted this was also untrue.
The Enforcement Action
On September 3, 2026, the SEC filed fraud charges against Omar Dario Chavez in the U.S. District Court for the Central District of California. The SEC alleges that Chavez defrauded at least 16 clients out of more than $940,000 between October 2022 and March 2025 by making fraudulent misrepresentations, misappropriating client money, and engaging in risky trading that resulted in significant losses. The SEC is seeking permanent injunctive relief, disgorgement with prejudgment interest, and a civil penalty.
Named in this action: Omar Dario Chavez.