Mediatrix Capital, Inc. – SEC Files Complaint | Goodman & Nekvasil P.A. May Recover Investor Losses
SEC Files Complaint Against:
MEDIATRIX CAPITAL, INC. BLUE ISLE MARKETS, INC. MICHAEL YOUNG, MICHAEL STEWART, BRYANT SEWALL, MEDIATRIX CAPITAL FUND LTD., ISLAND TECHNOLOGIES LLC, VICTORIA STEWART, MARIA YOUNG, HANNA SEWALL, MICHAEL C. BAKER, WALTER C. YOUNG III, ARUAL LP, WEST BEACH LLC, SALVE REGINA TRUST, TF ALLIANCE, LLC, CASA CONEJO LLC, HASE HAUS, LLC, DCC ISLANDS FOUNDATION, KEYSTONE BUSINESS TRUST, WEINZEL, LLC, THE 1989 FOUNDATION, MEDIATRIX CAPITAL PR LLC, MEDIATRIX CAPITAL, LLC, AND BLUE ISLE MARKETS INC. (CAYMAN ISLANDS),
According to the SEC Allegations:
The SEC brings this emergency enforcement action to halt a fraudulent, ongoing international trading program that has placed at risk more than $125 million of investors’ funds. From March 2016 to the present (the “Relevant Period”), Young, Stewart, and Sewall (the “Individual Defendants”), through Mediatrix Capital, Blue Isle 1, and Blue Isle 2 (the “Entity Defendants”), raised more than $125 million from investors in unregistered securities offerings by representing to investors that their money would be pooled and invested using Defendants’ allegedly highly profitable algorithmic trading strategy. Defendants falsely claimed to investors that from December 2013 through at least March 2019, their trading strategy had never had an unprofitable month and had returned more than 1,600%. Defendants further claimed that their highly successful trading strategy had enabled Mediatrix Capital to accumulate assets under management of $225 million as of the end of 2018. None of this was true.
In reality, since mid-2016, Defendants have misappropriated more than $35 million of investors’ money by transferring it out of the Entity Defendants’ bank and brokerage accounts rather than using the money for trading. Defendants used investors’ money to purchase luxury properties and vehicles and diverted more than $5 million of additional investors’ funds for other improper expenditures to perpetuate the fraud.
Even when Defendants used the remaining portion of investors’ money for trading, Defendants’ trading consistently lost money – losing more than $18 million from its trading in 2018 alone. Because of Defendants’ massive misappropriation and trading losses, Mediatrix Capital’s assets under management are nowhere close to the amounts represented by Defendants. For example, at year-end 2018, Defendants represented that Mediatrix Capital had $225 million under management, when in reality, the firm had approximately $35.3 million in assets under management (less than 16% of the amount claimed).
To induce investment into their failing trading strategy, Defendants defrauded investors by repeatedly misrepresenting the profitability of their trading, falsifying investors’ account statements to show phantom profits, and making Ponzi-like payments to investors who opted to cash out their “profits” — all in order to prop-up the façade of profitable trading.
Defendants’ misrepresentations, omissions, and other fraudulent conduct had the same goal and effect: provide investors with a false picture of trading profitability and a false sense of security, so as to induce additional investment to perpetuate the fraud. Defendants’ continued misappropriation and accelerating trading losses have driven their fraud to the brink of collapse. Mediatrix Capital’s most recent bank and brokerage account records indicate that only a fraction of investors’ funds remain, likely saddling investors with tens of millions of dollars in losses.
Defendants have solicited investors in the United States since at least 2016 to the present. To locate investors in the U.S. and abroad, in addition to the Offering Documents described above, during the Relevant Period, Mediatrix Capital and the Individual Defendants used independent sales representatives in the U.S., met with groups of high net worth U.S. investors, and presented at domestic investment conferences.
Investors in Mediatrix Capital, Inc. May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in Mediatrix Capital, Inc., Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in Mediatrix Capital, Inc. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
Mediatrix Capital, Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange, Mediatrix Capital