2 June AtoZ Markets— A trader based in New York City was charged by the Securities and Exchange Commission (SEC) today over duping vulnerable investors of millions of dollars. She was able to carry out the fraudulent activity based on a misrepresentation of her trading and investment credentials such as her trading record, investment profitability as well as investor fund usage.
Haena Park charged for millions in fraud
Haena Park and her company known as either Phaetra or Argenta - endorsed her fabricated profitable currency and future trading strategy when attempting to attract her Harvard classmates, friends, family as well as individuals connected to them. She gathered and accepted investor funds with which she experienced major losses month over month. Despite incurring these losses, she confirmed to investors that their investments were very profitable and even sent out forged investment account statements indicating fabricated profits. On occasions, Haena used funds from new investors to repay older customers, resembling Ponzi characteristics.
In the time span ranging between January 2012 and April of 2016, Haena raised 14 million dollars from over a total of 30 investors. She partook in intensive day trading in the highly leveraged forex and futures trading. Haena Park charged for millions in fraud concluded with a total of more than 16 million dollars in losses on the 18 million deposited in the trading account.
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NFA examination at Phaedra
As recently as in April 2016, The NFA examined Phaetra on site to investigate prospective malpractice. Haena Park was interviewed by NFA employees as part of the examination. To prevent her fraudulent activity from being detected, she made false statements to the examiners to hide the real situation.
Hanna Park and her journey
Aged 40, Haena Park is a resident of New York. She was enrolled at Harvard University in the past and was working at various financial companies between 1998 and 2008.
Director of the New York Regional office of the SEC - Andrew M. Calamari stated that “We allege that Park brazenly obtained investor money under false pretenses and compounded her egregious conduct by using phony monthly statements to convince some investors to significantly increase their investments based on fictitious positive returns.”
The U.S. Attorney’s Office of New York (Southern District) brought about criminal charges on Haena Park, in complementary action to the SEC complaint. A permanent injunction has been targeted along with the returns of fraudulent gains received (inclusive of penalties and interest).
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