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Wells Fargo Advisors ex-employee charged in $35 Million crypto Ponzi scam | #employeefraud | #recruitment | #corporatesecurity | #businesssecurity | #


A $35 million crypto Ponzi scam has reportedly duped 150 U.S. investors. Victims have filed a class-action lawsuit and dragged Wells Fargo Advisors as defendants. A subsidiary of Wells Fargo, Wells Fargo Advisors, is currently the ninth most prominent brokerage firm in the United States. The victims claim that the firm didn’t check the fraudulent actions undertaken by its employee, which ultimately culminated in the said crypto Ponzi scam.

As per court filings, an ex-employee of Wells Fargo Advisors is responsible for concocting the elaborate scam worth $35 million. James Seijas, allegedly, joined hands with some other employees to establish an entity named Q3. Gullible investors were then enticed to invest in their fraudulent scheme. Siejas roped in a certified surgeon named Quan Tran and a former UBS Securities staff member named Michael Ackerman.

Crypto Ponzi scam was crafted cleverly under professional investment disguise

The investors soon realized the hoax and noticed that scamsters had spent all their money on shopping. The accused used just $10 million for crypto asset trading purposes and misused the remaining funds for personal use. Interestingly, the crypto Ponzi scam was designed elaborately and with a cunning clarity. Siejas used the trust factor associated with Wells Fargo Advisors. Since it is a well-established brokerage brand, investors didn’t give a second thought before siphoning off their money. Quan Tran convinced his friends from the medical realm to participate in the scheme.

Q3 group now faces charges of conspiracy to commit fraud. The victims have accused Wells Fargo of negligence and not checking the malicious actions of its employees. Such behavior goes against the brokerage’s employment policy. The brokerage faces charges of vicarious liability.

The rising graph of crypto Ponzi scams are giving no respite to the investors. As the crypto realm grows, so does these unfortunate elements. The crypto realm is still undergoing organic growth, and as such, regulations are still unclear when compared to traditional financial markets. Thus, investors are always warned not to fall for schemes promising high returns.

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Posted in Employee Fraud



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