ORLANDO, Fla., June 21, 2012 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it is investigating potential claims against Money Concepts Capital Corp. ("Money Concepts") on behalf of customers of Gurudeo "Buddy" Persaud. Earlier today, the U.S. Securities and Exchange Commission ("SEC") charged Persaud with defrauding investors in an astrology-based Ponzi scheme. Specifically the SEC alleged that Persaud "lured family, friends, and others into investing in his firm, White Elephant Trading Company LLC, by falsely guaranteeing their money would be safe and yield lofty returns ranging from 6 to 18 percent. Persaud told investors he would invest in the debt, stock, futures, and real estate markets, but did not reveal that his trading strategy was based on his belief that markets are affected by gravitational forces."
"Persaud preyed on people who trusted him by promising high and steady returns while hiding his unconventional trading strategy," said Eric I. Bustillo, Director of the SEC's Miami Regional Office. "When Persaud blatantly lied to investors and hid their losses through a Ponzi scheme, he should have known that an SEC enforcement action was in the stars."
From November 2003 through September 2010, Persaud was registered with Money Concepts. The SEC has alleged that Persaud perpetrated his Ponzi scheme during a portion of this time period. Under FINRA Rules, Money Concepts was obligated to properly supervise the activities of Persaud during the time he was registered with the brokerage. Accordingly, Money Concepts may be liable for failing to supervise Persaud's activities while registered at the firm, and could potentially be responsible for compensating customers of Persaud for their losses.
Customers of Gurudeo "Buddy" Persaud, White Elephant Trading Company and/or Money Concepts can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or sustained losses by investing with Gurudeo "Buddy" Persaud, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com