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Broker Charged with Fraud Related to Astrology-based Investment Strategy
Investment fraud lawyers are currently investigating potential claims on behalf of customers of Gurudeo “Buddy” Persaud, an Orlando, Florida broker. A recent announcement by the Securities and Exchange Commission stated that the SEC has charged Persaud with defrauding investors. Allegedly, Persaud’s fraud involved the use of an investment strategy based on astrology.
According to the charges, which were filed in the U.S. District Court for the Middle District of Florida, Persaud allegedly persuaded investors to give him money for investments he promised were “safe” and that would return 6-18 percent on their investment. Persaud managed to raise $1 million from investors. However, SEC enforcers allege that Persaud’s market-timing service made forecasts that were based on gravitational pull and lunar cycles. The strategy is apparently based on the idea that mass human behavior and, as a result, the stock market, are affected by gravitational forces. Investors were not made aware of the alleged basis of Persaud’s strategy and most securities arbitration lawyers would agree that astrology is not a sound basis for an investment strategy.
Furthermore, Persaud allegedly misappropriated around $415,000 of investor money for his personal use and lost $400,000 as a result of the investment strategy.
According to investment fraud lawyers, clients of Persaud during the time period of November 2003 until September 2010 may be able to recover losses through securities arbitration. During this time period, Persaud was registered with Money Concepts Capital Corp. and, as an agent of the firm, Money Concepts could be held liable for Persaud’s improper handling of client funds during that time.
If you were a client of Persaud any time from November 2003 through September 2010, you may be able to recover losses related to your investment with Persaud through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.