In a recent court case, the Securities and Exchange Commission obtained a final judgement against Joshua David Nicholas. Nicholas was the chief trader for “EmpiresX,” The SEC filed a complaint against a hedge-fund accused of a false trading scheme. The SEC’s lawsuit, filed June 30, 2022 claims that Nicholas and two co-defendants Emerson Sousa Pires & Flavio Mendes Góncalves operated EmpiresX & sold investments with daily profits of 1% through a trading system. “bot” Nicholas’s manual trading
The complaint, however, reveals that Nicholas’ trading led to significant losses. Furthermore, the defendants only transferred a small portion of investors’ funds to EmpiresX’s brokerage account, while misappropriating large sums of money for personal expenses, such as leasing a Lamborghini, shopping at Tiffany & Co., and making payments on a second home.
Nicholas, Pires and Goncalves are not only facing legal actions from the SEC. In a parallel criminal proceeding in the Southern District of Florida, United States V. Joshua David Nicholas et. al., they have been charged with felony charges. Nicholas has already pleaded guilty to the charges and been sentenced to 51 months in prison, followed by a three-year period of supervision. Nicholas was also ordered to pay $3 379 527.18 in restitution. Pires, however, and Goncalves remain fugitives.
The U.S. District Court for Southern District of Florida’s final judgment entered against Nicholas on April 19th, 2022 prohibits him to violate Sections 5 and 17, (a), of Securities Act of 1933, Section 10b, of Securities Exchange Act of 34 and Rule 10b-5. This judgment is a reminder to the SEC that it will take action against those who are involved in fraudulent schemes which harm investors.
In this case, it is important to note the SEC’s appreciation for the Department of Justice as well as the Commodity Futures Trading Commission. In order to uncover and prosecute fraudulent activities on the financial market, collaboration between regulatory agencies is essential.
This case highlights that investors should exercise caution and diligence when evaluating investment opportunities. Before committing money, it is important to do thorough research on any investment opportunity. This includes the people and entities involved. Investors need to be cautious of any promises of high returns and low risk. These are often signs of potential scams. Before making any investment decision, it’s a good idea consult a professional financial advisor or get advice from reliable sources.
Enforcement actions by the SEC are vital in protecting investors and maintaining integrity on the financial markets. SEC enforces its policies by holding people accountable for their fraudulent acts. This sends out a clear signal that this type of behavior is not acceptable. The SEC’s efforts are designed to discourage others from engaging similar schemes, and maintain investor confidence.
The SEC’s final judgement against Joshua David Nicholas as the head trader of EmpiresX serves as a reminder that the agency is committed to prosecuting those who commit fraudulent activities. This case emphasizes the importance of thorough research and due-diligence when evaluating investment opportunities, and the necessity for regulatory agencies to collaborate in order to combat financial fraud. Investors should remain vigilant and consult reputable sources for guidance to avoid falling victim to these schemes.
Investors can get a free consultation
Haselkorn & Thibaut is a reputable law firm specializing in investment fraud cases. Their attorneys are experienced in securities litigation and arbitral proceedings and work tirelessly to make sure their clients get the justice and compensation that they deserve. With an impressive 98% success rate and millions recovered for investors, Haselkorn & Thibaut is the trusted choice for those seeking legal recourse for investment losses. Do not hesitate to act if you suspect that you have been the victim of an investment fraud. The knowledgeable attorneys will evaluate your case and advise you on the best way to recover your losses. A fee is not charged unless there’s a recovery. This will ensure that investment fraud won’t affect your financial situation. Contact Haselkorn & Thibaut today to protect your investments.
Contact Haselkorn & Thibaut today for a free consultation at 1-888-784-3315or website at InvestmentFraudLawyers.com.
SEC: What You Need to Know
Securities Exchange Commission is the regulatory body for the United States. It is responsible to protect investors and maintain fair and efficient markets. The SEC accomplishes this through the enforcement of securities laws, regulation of the securities industry, as well as providing accurate information to investors.
In order to protect investors, SEC performs a number of key functions. It requires that companies offering securities to the public disclose information about their finances, management, and business. This allows investors to make informed investments by having access to complete and accurate information.
Second, the SEC regulates and monitors the securities markets in order to prevent fraud and manipulate. It enforces regulations that promote transparency and prevent insider trades, as well as maintaining fair trading practices. The SEC maintains investor confidence by enforcing these rules.
The SEC also oversees investment advisors and brokerage firms to ensure that they comply with the regulations. It conducts investigations, inspections, and examinations to identify any possible violations.
In addition, the SEC is a key player in educating and empowering its investors. It offers resources, tools and guidance for investors to understand their rights, and help them make informed decisions. The SEC is also working to protect investors by educating the public about investment scams.
SEC’s primary objective is to protect investors, and to maintain the integrity of securities markets. SEC seeks to level the playing field between investors and promote fair, transparent markets through its regulatory oversight and enforcement actions.
More information can be found at SEC’s Website