Ackerman allegedly told investors that his Q3 trading account was highly invested in cryptocurrencies and generating substantial profits. He claimed that the entity was managing $310 million in assets. In reality, it never held that amount of assets and only had over $6 million.
Furthermore, the defendant allegedly enriched himself by using $7.5 million of investor funds to buy and renovate a house, jewelry, and multiple cars. He also used the money to pay for personal security services.
In a statement, SEC Miami Regional Office Director Eric Bustillo commented, “As alleged in our complaint, Ackerman lured investors, many in the medical profession, into falsely believing that he generated extraordinary profits from his algorithmic trading strategy. Ackerman exploited popular interest in digital assets as a means to obtain millions of dollars for his personal use.”
According to the SEC, Ackerman violated the antifraud provisions of the federal securities law. It is asking the federal court in New York to issue a permanent injunction, disgorgement plus pre-judgment interest and a civil penalty against the defendant.
