Gurudeo "Buddy" Persaud is accused of organizing an investment scheme with a fraud that was... cosmic.
New Times of Broward and Palm Beach counties reports that the Securities and Exchange Commission on Wednesday charged Persaud with stealing more than $1 million from investors between 2007 and the beginning of 2010: He promised them returns of 6 to 18 percent but left out, according to the SEC, "that his trading strategy was based on his belief that markets are affected by gravitational forces."
If you're thinking "gravitational forces" is some kind of complex economics model, you're thinking too hard -- the SEC says Persaud thought the Moon made people sell stocks.
"Persaud preyed on people who trusted him by promising high and steady returns while hiding his unconventional trading strategy... When Persaud blatantly lied to investors and hid their losses through a Ponzi scheme, he should have known that an SEC enforcement action was in the stars," said Miami SEC Director Eric I. Bustillo, cheesily.
Persaud lost $400 grand, and he traded for net losses from the very beginning. The guy literally never made money.
For more, click here.
Posted by Times Editor at 7:20:38 pm on June 24, 2012