Mediatrix Capital Fund: Fraudulent Investment Scheme Investigation

Mediatrix Capital was named as a defendant in September 18, 2019 SEC complaint alleging that it is a fraudulent international trading program with $125M of investor money at stake.

Sonn Law Group is investigating Mediatrix Capital Fund and it’s subsidiaries on behalf of investors.

We have substantial experience in representing investors who have sustained losses due to the negligence or misconduct of their broker and/or brokerage firm.

If you’ve suffered investment losses in Mexiatrix Capital, we want to hear about it, as there may be options for recovery.

If you have information about Mediatrix Capital Fund, please submit the short form below and we will follow up with you soon to discuss possible next steps.

SUMMARY

Key Facts of the SEC Complaint Against Mediatrix Capital Fund

• The SEC has brought this “emergency enforcement action” against Mediatrix to halt what they describe as “a fraudulent, ongoing international trading program that has placed at risk more than $125 million of investors’ funds.”
• Mediatrix is alleged to have raised more than $125 million from investors in unregistered securities offerings by representing to investors that their money would be pooled and invested using Mediatrix’s allegedly highly profitable algorithmic trading strategy.
• Mediatrix stated to investors that from December 2013 through at least March 2019, their trading strategy had never had an unprofitable month and had returned more than 1,600%. It further claimed that their highly successful trading strategy had enabled Mediatrix Capital to accumulate assets under management of $225 million as of the end of 2018. The SEC contends that of this was true.
• The SEC contends that Mediatrix “misappropriated more than $35 million of investors’ money by transferring it out of the Entity Defendants’ bank and brokerage accounts rather than using the money for trading” and that Mediatrix used investors’ money to buy luxury houses and cars, in addition to other “other improper expenditures to perpetuate the fraud.”
• Finally, the SEC complaint states that Mediatrix continued to induce investments into their “failing trading strategy” by lying about the profitability of their trading, altering investor’s account statement to display “phanton profits” and making payments in a Ponzi-like fashion to investors who decided to pull out their “profits”. Accoring to the SEC, all of this was done “in order to prop-up the façade of profitable trading”.

[Click here to read the SEC complaint in its entirety]

DEFANDANTS

Complete List of Defendants Named in the SEC Complaint Against Mediatrix Capital

• Michael S. Young (“Young”),
• Michael S. Stewart (“Stewart”),
• Bryant E. Sewall (“Sewall”),
• Mediatrix Capital Inc. (“Mediatrix Capital”),
• Blue Isle Markets Inc. (“Blue Isle 1”),
• Blue Isle Markets Ltd. (“Blue Isle 2”)

Brokerage Firms May Be Liable for Unsuitable Investment Recommendations or Aiding and Abetting Fraudulent Investment Schemes

If a financial advisor or brokerage firm made an unsuitable investment recommendation or promoted a fraudulent investment scheme, they may potentially be liable for an investor’s losses.

Sonn Law Group has a great deal of experience in representing investors who have sustained losses due to the negligence or misconduct of their broker and/or brokerage firm, including cases involving Ponzi schemes. If you are looking for an investment fraud attorney to review your rights and options, the lawyers at Sonn Law Group represent individual and institutional investors who have lost money as a result of unsuitable investment advice, negligent advice, investment fraud or stockbroker misconduct. Our attorneys have helped to recover more than $250 million in assets lost to investment fraud, securities fraud, Ponzi schemes, and stockbroker misconduct.