Maxum Gold Bank, FMP Medical, Organizers Accused of Orchestrating Ponzi Scam
Christopher A.T. Pedras, Sylvester M. Gray II and Alicia Bryan were charged by the SEC with using Maxum Gold Bnk Holdings Ltd, Maxum Gold Bnk Holdings LLC, FMP Medical Services Limited, and FMP Medical to perpetrate a Ponzi scheme.
To limit the damages caused by the alleged Maxum Gold scheme, the SEC announced an emergency asset freeze. The companies based in the U.S. and New Zealand were peddling sham investment opportunities in bank trading and kidney dialysis clinics, according to the Commission’s charges.
As with most Ponzi schemes it was alleged that the purported investments did not exist. Instead prior investors were paid with funds brought in by later investors.
Pedras is accused of raising more than $5.6 million from at least 50 U.S. investors. The complaint alleged that the scam was carried out in two phases. In the first phase Pedras and his associates solicited investments for Maxum Gold Small Cap Trade Program.
Maxum Gold purportedly served as the intermediary between banks that could not legally trade with each other directly, so they used Maxum Gold’s trade platform to do so indirectly, its perpetrators allegedly told investors. Maxum Gold purported to share portions of the trading profits with investors. The investors were promised returns of between 4 to 8 percent, the SEC alleged.
When Pedras had difficulty paying the returns he offered a new investment in kidney dialysis clinics in New Zealand, according to the charges. In this second phase of operations he was aided by Gray and Bryan who solicited investments for the non-existent businesses, said the Commission.
Pedras and Bryan also stand accused of falsely claiming that Maxum Gold had been in business for 15 to 20 years and has a client based of 6,000. Pedras reportedly conducted an in-person seminar at Paramount Studios, Los Angeles touting the investments as risk free.
Pedras, Gray, Bryan, Maxum Gold Bnk Holdings Limited, Maxum Gold Bnk Holdings LLC, FMP Medical Services Limited, and FMP Medical Services LLC were charged with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Pedras and Bryan also were charged with violations of Section 15(a) of the Exchange Act, and they and Pedras’s companies were charged with violations of Sections 5(a) and 5(c) of the Securities Act.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud or misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at 585-310-5140.