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Miami Investment Fraud Attorney
305.372.9700
1 SE 3rd Ave # 1200
SunTrust International Center
Miami, Florida 33131

SEC Charges Florida Resident in Connection With a $26 Million Investment Fraud Scheme

On March 13th, 2020, the Securities and Exchange Commission (SEC) announced securities fraud charges against Denis Sotnikov—a Russian national and resident of Broward County, Florida. Additionally, several companies that he owns and controls were also named as defendants in the complaint.

Mr. Sotnikov is accused of selling more than $26 million worth of fraudulent Certificates of Deposit (CDs) to investors. Authorities allege that the fraud was targeted at elderly and otherwise vulnerable investors. Here, our Miami investor losses attorneys provide an overview of the securities fraud charges against Denis Sotnikov and the entities he controls.

SEC Charges: Luring Investors With Phony Certificates of Deposit (CDs) 

In a complaint filed in the United States District Court of the District of New Jersey, the SEC contends that Denis Sotnikov flagrantly violated federal securities law through sale of outright fraudulent CDs. Besides Mr. Sotnikov and his wife (who was listed as a relief defendant), the following companies and investment entities were in the complaint:

  • Adaptive Technology LLC;
  • AGQ Business Group LLC;
  • ATL Business Group LLC;
  • BO & SA Corporation;
  • DN Industrial LLC;
  • Expert Digital LLC:
  • Great Imperial LLC:
  • HRC Clearing House LLC; and
  • Inteko Cargo LLC.

Through a web of interconnected companies, Mr. Sotnikov is accused of “spoofing” websites and offering CDs with rates of return that were well above the market average. Notably, the scheme carried out by Mr. Sotnikov was targeted at senior citizens and other investors who were nearing their retirement.

Some of the “spoofed” websites were designed to appear as legitimate U.S. financial firms. Other websites were presented as being their own unique companies. In both circumstances, the Certificates of Deposit being offered by Mr. Sotnikov were wholly fraudulent. Investor money—approximately $26 million in total—was being siphoned off for his own personal use.

The SEC is Seeking Full Financial Restitution for Investors 

Unfortunately, cyber fraud and other complex types of securities fraud present a serious risk for retail investors. Alarmingly, cyber-based investment fraud is growing by the year. In this case, the SEC believes that many innocent investors were swindled of a considerable amount of money—and  the agency is seeking immediate relief.

As a starting point, the SEC is seeking injunctive relief against Mr. Sotnikov and all implicated companies. The agency is also moving for disgorgement of ill-gotten gains, complete financial restitution, and payment of monetary penalties. If you or loved one lost money as part of this scheme or in other fraudulent CDs, an experienced attorney can help protect your rights. 

Call Our Florida Investment Fraud Lawyers for Immediate Help

At ​Carlson & Associates, P.A., our Miami investment fraud attorneys fight hard for investor rights. If you or someone you know suffered large losses in fraudulent certificates of deposit (CDs), we are available to help. To schedule a completely private review of your investment fraud claim, please call us now.

Resources:

sec.gov/news/press-release/2020-61

sec.gov/litigation/complaints/2020/comp-pr2020-61.pdf

https://www.carlson-law.net/sec-charges-florida-investment-advisory-firm-managing-partner-in-fraud-case-involving-unregistered-securities/

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