A crypto trading scam, which involved stock trader, financial advisor, surgeon and an enterprise called Q3 I LP, recently came in limelight.

In February 2020, Michael Ackerman, a former broker with the New York Stock Exchange (NYSE), was <a href="https://www.sec.gov/litigation/complaints/2020/comp24737.pdf" target="_blank" rel="noopener">accused</a> of stealing substantial funds from the more than $33 million. This amount was raised by over 100 investors.

Now, all the investors have come together and formed a legal representing body, Q3 Investment Recovery Vehicle, so that they could hold Ackerman, his former partner Wells Fargo, his employee James Seijas and Quan Tran, a surgeon from Florida, responsible for the loss.
<h2>High-Returns Promised To Lure Investors</h2>
According to the report, while attracting the investors into their trap, the culprits promise that they (investors) would get a high-returns trading algorithm through Facebook groups like Physician Dad’s Group.

The investment algorithm was developed by Ackerman. He earlier used it to trade stocks but it was not as successful as it was now while trading crypto.

The complaint registered by the US Securities and Exchange Commission has mentioned, “Ackerman invested no more than $10 million of the $33 million raised from investors in cryptocurrencies and the profits generated by the Algorithm were minimal, at best”.
<h2>Ackerman Uses Investors Money </h2>
A report suggests that Ackerman used the stolen money to buy five properties between the year 2018 to 2019. He also purchased over 150-acre plot in Montana and spent $3 million to buy a beach house in Florida. The accused has even bought cars and jewellery with stolen money.

The agency reported that at the time of the scam, the company was running by the of Q3 Holdings LLC. Its was established to help the customers by giving them access to Ackerman’s trading algorithm and for that, the company used to charge a license fee.

Ackerman earned another $4 million by this but did not notify his partners about it and even, demonstrated false account information to show 15 percent returns.

Later, Tran and Seijas discovered these financial discrepancies and when they confronted Ackerman, he just mentioned that the balance has been shifted to more secure trading. Then, Tran notified the SEC about the whole situation and the agency charged him with wire fraud and money laundering.

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Investors Take Action Against Former Broker With NYSE

In February 2020, Michael Ackerman, a former broker with the NYSE, was accused of stealing substantial funds from the more than $33 million.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Investors Take Action Against Former Broker With NYSE

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