Online Marketers Charged With Conning Main Street Investors Through Rags-to-Riches Infomercials
The SEC charged 10 individuals and two companies with using fake 'rags-to-riches' videos to deceive retirees into opening binary options accounts, resulting in tens of millions of dollars in losses, with six settling for $4.1 million in disgorgement and interest plus a $42,500 penalty, while five remain under litigation for penalties and injunctions.
The SEC alleged that 10 individuals and two companies ran a fraudulent scheme using staged internet videos to trick retail investors, especially retirees, into opening brokerage accounts and trading high-risk binary options, costing victims tens of millions of dollars. Marketers earned commissions for each funded account and used fake software demos and actors to falsely portray instant wealth, with the trading systems being mere ruses. Six defendants settled without admitting guilt, paying $4.1 million in disgorgement and interest, including a $42,500 penalty for Shmuel Pollen, while the SEC seeks penalties, disgorgement, and permanent injunctions against the remaining five, including Timothy Atkinson and Ronald Montano.
The SEC charged 10 individuals and two companies with orchestrating a sophisticated fraud using elaborately produced internet videos that falsely portrayed ordinary people becoming millionaires through binary options trading. These videos, distributed via spam emails, featured actors and fake real-time account growth demonstrations to lure retirees and retail investors into opening brokerage accounts, with marketers paid per funded account and the underlying trading software being a complete ruse. Tens of millions of dollars were stolen from victims, prompting the SEC’s Retail Strategy Task Force to issue investor alerts and educational videos warning against affiliate-driven investment scams. Six defendants—including Justin Barrett, William Berry, Grayson Brookshire, Antonio Giacca, Shmuel Pollen, and Travis Stephenson—settled without admitting or denying guilt, paying a combined $4.1 million in disgorgement and prejudgment interest, with Pollen additionally paying a $42,500 penalty; no penalties were imposed on the others due to cooperation. The SEC is pursuing penalties, disgorgement, and permanent injunctions against the five remaining defendants: Timothy J. Atkinson, Ronald 'Ronnie' Montano, Jay Passerino, Michael Wright, and All In Publishing LLC. The investigation, led by Jason Anthony, Michael Fuchs, and Deborah Maisel, remains ongoing, with the Commodity Futures Trading Commission filing parallel actions. The SEC emphasized that those using deceptive online tactics to steal savings will be held accountable, urging the public to research before sharing personal information with online investment pitches.
Exhibits & Attached Documents (3)
Extracted insights
- $4.10M $4.1 million $1M–$10M
- $43K $42,500 $10K–$100K
- company all in publishing llc
- person antonio giacca
- person berry mediaworks
- agency Commodity Futures Trading Commission
- person deborah maisel
- person grayson brookshire
- person internet marketers
- person investor alert
- person jason anthony
- person jay passerino
- person Jennifer Leete
- person justin blake barrett
- person kenneth donnelly
- person lori schock
- person melissa hodgman
- person michael fuchs
- person michael wright
- person parallel actions
- person retail investors
- person ronald montano
- agency sec charges
- agency sec investigation
- agency sec litigation
- agency Securities and Exchange Commission
- person settling parties
- person shmuel pollen
- person timothy j. atkinson
- person travis stephenson
- person warning videos
- person william e. berry
- Securities And Exchange Commission charged internet marketers
- internet marketers created rags-to-riches videos
- internet marketers tricked retail investors
- investors lost tens of millions of dollars
- SEC alleges marketers were paid for each new brokerage account
- SEC alleges software was a ruse
- SEC created warning videos
- SEC issued Investor Alert
- Melissa Hodgman said thousands of retail investors were swindled
- Lori Schock said protect yourself from professional fraudsters
- SEC charged 10 individuals and two companies
- SEC seek penalties, disgorgement, and permanent injunctions
- SEC charged Timothy J. Atkinson
- SEC charged Ronald Montano
- SEC charged Jay Passerino
- SEC charged Michael Wright
- SEC charged All In Publishing LLC
- Justin Blake Barrett agreed to settle SEC charges
- William E. Berry agreed to settle SEC charges
- Berry Mediaworks agreed to settle SEC charges
- Grayson Brookshire agreed to settle SEC charges
- Antonio Giacca agreed to settle SEC charges
- Shmuel Pollen agreed to settle SEC charges
- Travis Stephenson agreed to settle SEC charges
- settling parties agreed to pay $4.1 million
- Shmuel Pollen agreed to pay $42,500 penalty
- SEC did not assess penalty on other settling parties
- Jason Anthony conducted SEC investigation
- Michael Fuchs conducted SEC investigation
- Deborah Maisel conducted SEC investigation
- Jennifer Leete supervised SEC investigation
- Kenneth Donnelly led SEC litigation
- Commodity Futures Trading Commission filed parallel actions
The Securities and Exchange Commission today charged a group of internet marketers who allegedly created and disseminated elaborate rags-to-riches videos to trick retirees and other retail investors into opening brokerage accounts and trading high-risk securities known as binary options. According to the SEC’s complaints, investors were conned out of tens of millions of dollars through these marketing campaigns, which promised that investors would make large amounts of money by opening binary options accounts and using free or secret software systems to trade in them. The SEC alleges that the marketers were paid for each new brokerage account that investors opened and funded. According to the complaints, the marketers’ internet video advertisements, which were disseminated through spam emails, used actors to portray ordinary people who became millionaires by trading binary options. The videos staged fake demonstrations of supposed software users watching their account balances grow in real time. The SEC alleges that the software was simply a ruse to persuade investors to open accounts with the brokers. To help educate investors about the risks of internet marketing scams, the SEC’s Retail Strategy Task Force and Office of Investor Education and Advocacy created the first in a series of videos warning investors of the risks of providing personal information in response to online investment pitches, and have issued an Investor Alert about the use of affiliate marketing to generate interest in securities offerings. “As alleged in our complaints, thousands of retail investors were swindled out of tens of millions of dollars by watching elaborately produced rags-to-riches stories that falsely promised wealth at the push of a button,” said Melissa Hodgman, Associate Director of the SEC’s Enforcement Division. “Those who use phony tactics to dupe investors out of their savings will be held accountable for false and misleading statements on the internet.” “Before you provide any of your valuable personal information to anyone, make sure you do your research and know exactly who it’s going to,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Be aware before you share, and protect yourself from professional fraudsters who may target you and your money for life.” The SEC’s complaints charged 10 individuals and two companies involved in the fraudulent marketing campaigns. The SEC’s investigation is continuing. The SEC’s complaints seek penalties, disgorgement of ill-gotten gains, and permanent injunctions against Timothy J. Atkinson, Ronald “Ronnie” Montano, Jay Passerino, Michael Wright, and All In Publishing LLC. Justin Blake Barrett, William E. Berry and his company Berry Mediaworks, Grayson Brookshire, Antonio Giacca, Shmuel Pollen, and Travis Stephenson have agreed to settle the SEC’s charges. Without admitting or denying the charges, they agreed to pay a combined total of $4.1 million in disgorgement and prejudgment interest. Pollen has agreed to pay a $42,500 penalty. The Commission did not assess a penalty on the other settling parties as a result of their cooperation. The SEC’s investigation is being conducted by Jason Anthony, Michael Fuchs, and Deborah Maisel, and supervised by Jennifer Leete. The SEC’s litigation against Atkinson, Passerino, Montano, Wright, and All In Publishing will be led by Kenneth Donnelly. The SEC appreciates the assistance of the Commodity Futures Trading Commission, which filed parallel actions today.
The Securities and Exchange Commission today charged a group of internet marketers who allegedly created and disseminated elaborate rags-to-riches videos to trick retirees and other retail investors into opening brokerage accounts and trading high-risk securities known as binary options. According to the SEC’s complaints, investors were conned out of tens of millions of dollars through these marketing campaigns, which promised that investors would make large amounts of money by opening binary options accounts and using free or secret software systems to trade in them. The SEC alleges that the marketers were paid for each new brokerage account that investors opened and funded. According to the complaints, the marketers’ internet video advertisements, which were disseminated through spam emails, used actors to portray ordinary people who became millionaires by trading binary options. The videos staged fake demonstrations of supposed software users watching their account balances grow in real time. The SEC alleges that the software was simply a ruse to persuade investors to open accounts with the brokers. To help educate investors about the risks of internet marketing scams, the SEC’s Retail Strategy Task Force and Office of Investor Education and Advocacy created the first in a series of videos warning investors of the risks of providing personal information in response to online investment pitches, and have issued an Investor Alert about the use of affiliate marketing to generate interest in securities offerings. “As alleged in our complaints, thousands of retail investors were swindled out of tens of millions of dollars by watching elaborately produced rags-to-riches stories that falsely promised wealth at the push of a button,” said Melissa Hodgman, Associate Director of the SEC’s Enforcement Division. “Those who use phony tactics to dupe investors out of their savings will be held accountable for false and misleading statements on the internet.” “Before you provide any of your valuable personal information to anyone, make sure you do your research and know exactly who it’s going to,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “Be aware before you share, and protect yourself from professional fraudsters who may target you and your money for life.” The SEC’s complaints charged 10 individuals and two companies involved in the fraudulent marketing campaigns. The SEC’s investigation is continuing. The SEC’s complaints seek penalties, disgorgement of ill-gotten gains, and permanent injunctions against Timothy J. Atkinson, Ronald “Ronnie” Montano, Jay Passerino, Michael Wright, and All In Publishing LLC. Justin Blake Barrett, William E. Berry and his company Berry Mediaworks, Grayson Brookshire, Antonio Giacca, Shmuel Pollen, and Travis Stephenson have agreed to settle the SEC’s charges. Without admitting or denying the charges, they agreed to pay a combined total of $4.1 million in disgorgement and prejudgment interest. Pollen has agreed to pay a $42,500 penalty. The Commission did not assess a penalty on the other settling parties as a result of their cooperation. The SEC’s investigation is being conducted by Jason Anthony, Michael Fuchs, and Deborah Maisel, and supervised by Jennifer Leete. The SEC’s litigation against Atkinson, Passerino, Montano, Wright, and All In Publishing will be led by Kenneth Donnelly. The SEC appreciates the assistance of the Commodity Futures Trading Commission, which filed parallel actions today.