SEC Charges Unregistered Broker with $2.2M Fraudulent Investment Scheme

The United States Securities and Exchange Commission (SEC) charged Joshua Louis Rupp with engaging in a fraudulent investment scheme that that included misstatements, false documents and misappropriation of investor funds.  

Wanna Know How to Reach Our Audience of Millions at Fazzaco?

Joshua Louis Rupp is a resident of Michigan aged 37. Rupp previously worked in construction and no public record shows Rupp being registered with the Commission as a broker or dealer or associated with any registered brokerdealer or investment adviser. However, throughout 2018 and 2019, Rupp raised over $2.2 million from about 20 investors to trade securities on their behalf. Rupp told a number of investors their money would be pooled with other investors' money. 

SEC alleged that Rupp solicited investments by means of various false statements, including that he was a licensed securities professional, investors' principal was protected from losses, and he would generate profits for investors. Rupp provided to investors fake documents purporting to show he was associated with a licensed broker-dealer. Rupp also provided investors false account statements and false trading data to make it appear that his trading on their behalf was generating positive returns. 

In reality, SEC stated, Rupp was not licensed in the securities industry or affiliated with any brokerage firm, his securities trading resulted in significant losses, and he misappropriated and misused hundreds of thousands of dollars of investor funds. Investors lost most of their money, including retirement funds, through Rupp's fraud.

As a result of the actions and misappropriation, the ‎SEC seeks an order enjoining Rupp from future violations of these provisions, requiring him to disgorge his ill-gotten gains plus prejudgment interest, and imposing a monetary penalty, at the same time, full full restitution to ‎victims.