Federal securities regulators accused a group of online marketers of circulating get-rich-quick videos to commit a “massive fraud” that bilked 75,000 investors out of tens of millions of dollars.
Ten individuals across the US were charged on Thursday with conspiracy to commit fraud by emailing out spam campaigns and slick videos that pushed investors to buy highly risky stock options, according to the Securities and Exchange Commission and the Commodity Futures Trading Commission. Seven of those charged have settled.
The videos were riddled with false promises of “risk-free” cash if they opened a brokerage account and “press a button,” according to videos produced by the SEC and settlement claims.
In one video promising rags to riches, an actor says he made $7,129.55 by opening an account with the brokerage Push Money.
“We now have proof that the Lord does make miracles, and the Push Money system is definitely one of them,” the actor said.
The brokerages have names like the “Push Money System” and the “2015 Millionaire’s Club,” according to the regulators.
The videos, made between 2013 and 2016, targeted people who had little savings, didn’t know about investing, or were behind on their debts, according to those seen by The Post.
It’s unclear how the marketers found their victims, but they targeted the elderly, said Susan Gradman, the CFTC’s chief trial attorney in its enforcement division.
“These people were sent emails directly into their inbox,” Melissa Hodgman, associated director of the SEC’s enforcement division, said during a conference calls with reporters. “They didn’t go in search of these videos.”