The Securities and Exchange Commission has charged California resident Omar Dario Chavez with running a fraudulent trading scheme that collected more than $940,000 from at least 16 clients. Chavez, also known as Omar Aiden Chavez, allegedly targeted several elderly victims. The complaint, filed September 3 in the U.S. District Court for the Central District of California and announced in Litigation Release No. 26630, alleges that Chavez falsely portrayed himself as a successful stock trader and financial consultant between October 2022 and March 2025.
What happened
According to the SEC, Chavez solicited clients to let him trade securities on their behalf, telling them he was averaging monthly returns of 10 to 20 percent from his own trading. He also told prospective clients he would back their money with $1 million to $2 million in personal assets. The complaint states those assets did not exist. In total, Chavez collected approximately $940,379 from his clients during the alleged scheme.
Key facts from the complaint
| Metric | Figure |
|---|---|
| Total obtained from clients | Approximately $940,379 |
| Number of clients | At least 16, including several elderly victims |
| Period of the alleged fraud | October 2022 through March 2025 |
| Claimed monthly trading returns | 10 to 20 percent |
| Claimed personal backing | $1 million to $2 million in assets he did not have |
| Largest single client loss | About $120,000, the client’s entire investment |
| Court case | No. 2:26-cv-09887, Central District of California |
Where the client money went
The complaint describes a commingling operation. Clients generally sent funds to Chavez’s personal bank account at his instruction, where their money mixed with his own. In one case, a client wired money to a bank account in the name of Lucky Ones, and Chavez immediately moved the funds to his personal account without telling the investor. In another, a financially desperate client transferred approximately $120,000 and lost the entire investment.
Chavez moved some client money into personal brokerage accounts and traded under his own name, according to the complaint. The remainder went to personal expenses: rent, credit card bills, repayments on short-term personal loans, and payments to other clients.
False records and fabricated statements
The SEC alleges that Chavez created and used false brokerage account statements to keep clients believing their money was growing as promised. The complaint charges violations of the antifraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The agency seeks permanent injunctive relief, disgorgement with prejudgment interest, and a civil penalty.
The conduct is familiar to enforcement attorneys. A trader who promises double-digit monthly returns, holds client funds in a personal account, and produces his own statements is running a playbook regulators have seen for decades. The victims in this case spanned age groups, but the complaint highlights several elderly clients who could least afford the loss.
Red flags in this case
- Return claims of 10 to 20 percent per month, a pace no legitimate adviser sustains over time
- Deposit requests to a personal bank account rather than a custodial account at a registered firm
- Account statements produced by the adviser himself instead of a brokerage or custodian
- No registration record found in the SEC’s Investment Adviser Public Disclosure database
What affected investors can do now
Clients who gave Chavez money should gather every record they hold: wire confirmations, bank statements, text messages, and any account statements he provided. Misappropriated funds are rarely recovered in full, and claims asserted early in a proceeding have the best prospects. Investors should verify any future adviser through the SEC’s public disclosure system before sending money, and never transfer funds to an individual’s personal account.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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This article is provided for general informational purposes and does not constitute legal or investment advice. Investors should consult a qualified professional about their specific circumstances.
