MutualWealth halted by SEC? RSS - comments

According to its official website, the Securities and Exchange Commission filed an official complaint in the US District Court for the Central District of California to stop "a fraudulent pyramid scheme by phony companies masquerading as a legitimate international investment firm", namely Mutual Wealth.

What one may read in the complaint is rather succinct and to the point, since the claim is that "almost nothing that Mutual Wealth represents to investors is true".

One of the arguments is that Mutual Wealth does not actually purchase or sell any securities on behalf of investors, as it is supposed to do, but just "diverts investor money to offshore bank accounts held by shell companies". What is more, there is no seat of the company in Hong Kong or New York. To add to this, the list of executives on www.mutualwealth.com is completely fabricated and it is not "duly registered with the SEC", as MW claims "in e-mails to investors". SEC also mentions the fact that MW "operates through entities in Panama and the UK and uses offshore accounts in Cyprus and Latvia [...] to divert money from investors". What may be even more damaging to MW's image is the fact that, according to SEC, the company's "sole director and shareholder presented forged and stolen passports and a bogus address to foreign government authorities and payment processors".

Consequently, as of March 5, 2014 MW's assets has been frozen and the website should go offline. However, at the moment the page seems to be working fine and Mutual Wealth assures that the company is "aware of this issue and it is not as bad as the press makes it look". Moreover, MW claims that they are in fact working on some sort of resolution with the Securities and Exchange Commission. To add to this, according to Mutual Wealth, "[t]he issue at hand is a disagreement between us and the commission as to the status of advisors in the United States [and our] legal team will be in Court this week".

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