The Securities and Exchange Commission (SEC) today charged Chibuzo Augustine Onyeachonam, Stanley Chidubem Asiegbu, and Chukwuebuka Martin Nweke-Eze with fraud for impersonating legitimate securities brokers and investment advisers in an elaborate online scheme through which the defendants stole more than $2.9 million from at least 28 investors.
As alleged in the SEC’s complaint, from at least 2019 to the present, the three defendants, who reside in Nigeria, created websites impersonating nearly two dozen actual securities brokers and investment adviser representatives (collectively, representatives) at well-known U.S. securities firms as part of a fraudulent scheme to entice potential investors in the United States to invest funds with the defendants.
The defendants allegedly lured investors to the websites by placing fictitious comments from purported clients on social media and in investment group chats praising the representatives’ trading success.
The SEC’s complaint alleges that the defendants promised monthly returns of up to 25 percent and directed investors to fake online investment platforms they created to make investors think their portfolios were increasing in value.
In addition, according to the SEC’s complaint, the defendants purchased voice changing software to talk to investors, as most of the impersonated professionals were women.
The SEC’s complaint, filed in U.S. District Court for the District of New Jersey, charges Onyeachonam, Asiegbu, and Nweke-Eze with violating the anti-fraud provisions of the Securities Act of 1933 and the Exchange Act of 1934, and charges Onyeachonam and Asiegbu with violating the anti-fraud provisions of the Investment Advisers Act of 1940.
The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties against all defendants.
In a parallel action, the United States Attorney’s Office for the District of New Jersey announced criminal charges against Onyeachonam, Asiegbu, and Nweke-Eze.
