SEC Charges Mediatrix and Its Principals, Michael S. Young, Michael S. Stewart, and Bryant E. Sewall with Securities Law Violations in Alleged $125 Million SchemeSaturday, September 28, 2019
The SEC announced it has filed an emergency action and obtained a temporary restraining order and asset freeze against Mediatrix Capital Inc. and its three principals, Michael S. Young, Michael S. Stewart, and Bryant E. Sewall, in connection with an alleged fraudulent, ongoing international trading program that has placed at risk more than $125 million of investor funds.
According to the SEC’s complaint, beginning in March 2016, Mediatrix, Young, Stewart, and Sewall, induced investors to invest by falsely representing that their money would be invested using a highly profitable algorithmic trading strategy that had never experienced an unprofitable month and had returned more than 1,600 percent since inception. In truth, the complaint alleges, the perpetrators trading strategy consistently lost money, losing more than $18 million from its trading in 2018 alone. In addition to repeatedly misrepresenting the profitability of the trading, the complaint alleges defendants also misled investors by falsifying account statements and making Ponzi-like payments, all while misappropriating more than $35 million of investor money for defendants’ personal use, including to purchase luxury properties and vehicles.
The SEC’s complaint, filed in federal district court in Colorado on September 12, 2019 charges all the perpetrators with violating Federal Securities Laws. The SEC has also charged 20 relief defendants who allegedly received profits from the fraud.
If you invested money in the alleged Mediatrix scheme, we may be able to help you recover. Call us today at 1-877-410-8172 for a free consultation. Since 1998, the attorneys at ChapmanAlbin have helped investors recover money lost due to investment fraud and other misconduct.