Astrologer Stock Broker, Gurudeo Persaud, Barred by SEC
On May 9, 2014, the Securities and Exchange Commission (“Commission”) announced that public administrative proceedings were instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against Gurudeo Persaud (“Persaud”).
In connection with the same conduct, last August, Persaud entered into a written agreement to plead guilty to, and has been convicted of and sentenced to three years in prison for one count of mail fraud in the case of United States v. Persaud, Case No. 6:13-cr-25-Orl-36DAB.
According to the allegations, Persaud made numerous misrepresentations and omissions to investors, including guaranteeing their investments were secure, failing to disclose his trading strategies were based on lunar cycles and the gravitational pull between the Earth and the moon, and that he misappropriated nearly half the investors’ contributions for personal use.
From 2005 until August 2010, Persaud was a registered representative with Money Concepts Capital Corporation, an entity located in Palm Beach Gardens Florida and dually registered with the Commission as a broker-dealer and investment adviser. Persaud held Series 7, 63, and 66 securities licenses during that time. He resigned from Money Concepts in August 2010. According to the allegations, while associated with Money Concepts, Persaud started his own company, White Elephant Trading Company LLC. From no later than July 2007 until at least January 2011, Persaud raised more than $1 million from investors by promising them 6 to 18 percent annual returns and a risk-free investment in White Elephant’s private equity fund, which would invest in the futures and other markets.
On April 18, 2014, a final judgment was entered by consent against Persaud in the civil action entitled Securities and Exchange Commission v. Gurudeo Persaud, Case No. 6:12-cv-932-Orl-28G-JK. Among other things, the final judgment permanently enjoined Persaud from future violations of Sections 206(1), 206(2), and 206(4), and Rules 206(4)-(8)(a)(1) and (2) of the Advisers Act. Previously in the same case the District Court had granted summary judgment in favor of the Commission and enjoined Persaud from future violations of Sections 5(a) and (c) and 17(a) of the Securities Act of 1933 (“Securities Act”), and Exchange Act Section 10(b) and Rule 10b-5.
In anticipation of the SEC’s proceedings, Persaud submitted an Offer of Settlement (the “Offer”) which the Commission accepted. In connection therewith, Persaud consented to the entry of an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (“Order”).
As a result of the SEC proceedings, Persaud was barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
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