SEC Halts Ponzi Scheme; FCA Updates Warning List

SEC Halts Ponzi Scheme; FCA Updates Warning List

Time Stamp: October 4, 2023 5:28 AM
Source Node: 2916183

SEC Halts Zera Financial’s Alleged Ponzi Scheme

The US
Securities and Exchange Commission (SEC) has obtained an emergency court order
to stop an alleged Ponzi-like scheme run by Zera Financial LLC and its owner,
Luis A. Romero. The scheme reportedly raised over $2.2 million from
approximately 170 investors. According to the SEC’s complaint, Zera and Romero
promised investors 3% monthly returns, translating to over 36% annual returns,
on investments as low as $500. They also falsely claimed that the investments
were FDIC-insured.

The SEC
alleges that Zera and Romero had no significant business operations other than
raising funds from investors and making Ponzi-like payments. Romero is accused
of misusing investor funds for personal expenses, including an electric truck
and tropical fish, and depositing large sums into various cryptocurrency
accounts.

FCA Issues Warnings against
Unauthorized Firms

The
Financial Conduct Authority (FCA) has issued warnings against several
unauthorized firms this week. These include GBG Limited, GainGround, and Asset
Flow Traders. All three firms are not registered or authorized by the FCA and
have been targeting people in the UK.

The
warnings serve as a cautionary note for individuals and investors to be wary of
dealing with these unauthorized firms. The FCA regularly updates its list of
such firms and individuals to protect the public from potential scams and
fraudulent activities.

ClearBank Group Holdings
Expands Board for Global Growth

Richard Anderson

ClearBank
Group Holdings has announced the appointment of four new non-executive
directors as it gears up for international expansion. The new appointees
include Peter Herbert as Group Chair, Tim Wade as Senior Independent Director,
Richard Anderson as Group Chair of Risk Committee, and Susanne Hannestad as
Non-Executive Director.

The new
board members bring a wealth of experience in banking, payments, and business
transformation. Peter Herbert, for instance, has previously served as Chair for
Bank of Ireland (UK) and Zopa Bank. Tim Wade has senior management experience
with Royal Bank of Canada Europe Ltd and Virgin Money PLC. Richard Anderson and
Susanne Hannestad also bring specialized skills in risk management and global
operations, respectively. The appointments are expected to significantly
contribute to ClearBank’s international growth plans over the next year.

FIA Tech Opens Atlantis
Platform to Buyside Market

FIA Tech, a
leading technology provider in the futures industry, has expanded its Atlantis
settlement platform to include buyside market participants. The platform, which
processes over 170 million trades annually, will now allow clients to manage
execution brokerage payments directly. The first buyside participant to join
Atlantis is a multi-billion dollar, multi-strategy hedge fund.

Atlantis
streamlines the calculation, invoicing, and payment of brokerage fees, offering
high rates of automation and integrated workflows. The platform currently has
45 institutions settling across 34 clearing houses globally. Nick Solinger,
President and CEO of FIA Tech, stated that firms using Atlantis have seen up to
99% automated settlement rates and have doubled or tripled the productivity of
their brokerage payables and receivables teams.

ABN Amro Sells Stake in
EMS to Fiserv

Finance Magnates

ABN Amro
has sold its 49% stake in digital payments business EMS to Fiserv. The
Netherlands-based EMS provides technology for processing payments between
merchants and customers and has a client base spanning 25 markets.

The sale
comes after ABN Amro concluded that EMS would be better served by being wholly
owned by Fiserv. Financial terms of the deal were not disclosed. Fiserv had
previously owned 51% of EMS and has now acquired the remaining stake.

Federal Court Orders
Provide Capital to Produce Documents

The Federal
Court has ordered Provide Capital to produce documents it had failed to provide
earlier, as part of an ongoing investigation by the Australian Securities and
Investments Commission (ASIC). The court noted a history of delay and
obfuscation on the part of Provide Capital in complying with the notice.

Provide
Capital must produce the documents within 28 days, including unredacted copies
of previously redacted documents. The court emphasized that any confidentiality
obligations must yield to statutory requirements.

Seoul Aims to Become
Fintech Powerhouse

Seoul plans
to invest five trillion won ($3.7 billion) to transform the city into a global
fintech hub. Seoul Mayor Oh Se-hoon made the announcement during the opening
ceremony of Seoul Fintech Week 2023. The Seoul Vision 2030 Fund will channel
the investment over the next four years.

Mayor Oh
stated that the current economic challenges offer new opportunities for Seoul,
which aspires to be among the top five financial cities in the world. The city
also plans to secure a 50,000-square-meter space in Yeouido, Seoul’s financial
district, to nurture a fintech ecosystem and rebrand the city as a digital
financial hub.

SEC Halts Zera Financial’s Alleged Ponzi Scheme

The US
Securities and Exchange Commission (SEC) has obtained an emergency court order
to stop an alleged Ponzi-like scheme run by Zera Financial LLC and its owner,
Luis A. Romero. The scheme reportedly raised over $2.2 million from
approximately 170 investors. According to the SEC’s complaint, Zera and Romero
promised investors 3% monthly returns, translating to over 36% annual returns,
on investments as low as $500. They also falsely claimed that the investments
were FDIC-insured.

The SEC
alleges that Zera and Romero had no significant business operations other than
raising funds from investors and making Ponzi-like payments. Romero is accused
of misusing investor funds for personal expenses, including an electric truck
and tropical fish, and depositing large sums into various cryptocurrency
accounts.

FCA Issues Warnings against
Unauthorized Firms

The
Financial Conduct Authority (FCA) has issued warnings against several
unauthorized firms this week. These include GBG Limited, GainGround, and Asset
Flow Traders. All three firms are not registered or authorized by the FCA and
have been targeting people in the UK.

The
warnings serve as a cautionary note for individuals and investors to be wary of
dealing with these unauthorized firms. The FCA regularly updates its list of
such firms and individuals to protect the public from potential scams and
fraudulent activities.

ClearBank Group Holdings
Expands Board for Global Growth

Richard Anderson

ClearBank
Group Holdings has announced the appointment of four new non-executive
directors as it gears up for international expansion. The new appointees
include Peter Herbert as Group Chair, Tim Wade as Senior Independent Director,
Richard Anderson as Group Chair of Risk Committee, and Susanne Hannestad as
Non-Executive Director.

The new
board members bring a wealth of experience in banking, payments, and business
transformation. Peter Herbert, for instance, has previously served as Chair for
Bank of Ireland (UK) and Zopa Bank. Tim Wade has senior management experience
with Royal Bank of Canada Europe Ltd and Virgin Money PLC. Richard Anderson and
Susanne Hannestad also bring specialized skills in risk management and global
operations, respectively. The appointments are expected to significantly
contribute to ClearBank’s international growth plans over the next year.

FIA Tech Opens Atlantis
Platform to Buyside Market

FIA Tech, a
leading technology provider in the futures industry, has expanded its Atlantis
settlement platform to include buyside market participants. The platform, which
processes over 170 million trades annually, will now allow clients to manage
execution brokerage payments directly. The first buyside participant to join
Atlantis is a multi-billion dollar, multi-strategy hedge fund.

Atlantis
streamlines the calculation, invoicing, and payment of brokerage fees, offering
high rates of automation and integrated workflows. The platform currently has
45 institutions settling across 34 clearing houses globally. Nick Solinger,
President and CEO of FIA Tech, stated that firms using Atlantis have seen up to
99% automated settlement rates and have doubled or tripled the productivity of
their brokerage payables and receivables teams.

ABN Amro Sells Stake in
EMS to Fiserv

Finance Magnates

ABN Amro
has sold its 49% stake in digital payments business EMS to Fiserv. The
Netherlands-based EMS provides technology for processing payments between
merchants and customers and has a client base spanning 25 markets.

The sale
comes after ABN Amro concluded that EMS would be better served by being wholly
owned by Fiserv. Financial terms of the deal were not disclosed. Fiserv had
previously owned 51% of EMS and has now acquired the remaining stake.

Federal Court Orders
Provide Capital to Produce Documents

The Federal
Court has ordered Provide Capital to produce documents it had failed to provide
earlier, as part of an ongoing investigation by the Australian Securities and
Investments Commission (ASIC). The court noted a history of delay and
obfuscation on the part of Provide Capital in complying with the notice.

Provide
Capital must produce the documents within 28 days, including unredacted copies
of previously redacted documents. The court emphasized that any confidentiality
obligations must yield to statutory requirements.

Seoul Aims to Become
Fintech Powerhouse

Seoul plans
to invest five trillion won ($3.7 billion) to transform the city into a global
fintech hub. Seoul Mayor Oh Se-hoon made the announcement during the opening
ceremony of Seoul Fintech Week 2023. The Seoul Vision 2030 Fund will channel
the investment over the next four years.

Mayor Oh
stated that the current economic challenges offer new opportunities for Seoul,
which aspires to be among the top five financial cities in the world. The city
also plans to secure a 50,000-square-meter space in Yeouido, Seoul’s financial
district, to nurture a fintech ecosystem and rebrand the city as a digital
financial hub.

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