SEC sued BNZ One Capital and its co-founders for operating a Ponzi-like scheme

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Barner, and Zimmerle’s conduct is a violation of the anti-fraud provisions  of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The defendants also violated the broker-dealer registration provisions of Section 15(a) of the Exchange Act, according to the SEC.

In a statement, SEC Los Angeles Regional Office Director Michele Wein Layne said, “The complaint here alleges that when defendants failed to earn sufficient profits in order to pay investor returns, they made Ponzi-like payments to investors using other investors’ money, and, separately, also used investor funds to pay themselves handsomely.”

“Individuals who engage in such misconduct should expect to be held accountable for their actions by the SEC,” she added.

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