All information in this report was compiled from public records maintained by the SEC.
Children’s Education Pyramid Scheme
Yao Lin, 50, of Fresh Meadows, New York, on May 9, entered an offer of settlement for an SEC Order. Lin was found guilty of acting as an unregistered broker-dealer promoting a fraudulent pyramid scheme.
Lin was a promoter for CKB168 Holdings, WIN168 Biz 2 Solutions, CKB168, CKB168 Biz Solution and Cyber Kids Best Education. From May 2011 through October 2013, he defrauded people into investing in a business venture called CKB by presenting it as a profitable multi-level marketing company that sold children’s online educational courses.
CKB was a fraudulent pyramid scheme with no legitimate sales. The only way to earn money was to bring in new investor funds. Lin was a top promoter of the pyramid scheme and acted as an unregistered broker-dealer.
The SEC barred Lin from associating with any dealer, broker, municipal security dealer, transfer agent, statistical rating organization, or transfer agent and from participating in any offering of a penny stock.
$12 Million Ponzi Scheme
Matthew Eckstein, 52, of Syosset, New York (and currently a resident of Altona New York state prison) on May 11 entered an offer of settlement for an SEC order. Eckstein was found guilty of grand larceny in the first degree and defrauding investors in securities.
Eckstein was a registered broker-dealer associated with Gould, Ambroson & Associates from April 1996 through September 2015. He was also associated with Sisk Investment Services from September 2015 through June 2018 and was its CEO and COO, and owned over 95 percent of the company.
On September 26, 2019, Eckstein pled guilty to grand larceny in the first degree in a $12 million Ponzi scheme. He admitted that between 2013 and 2018, he defrauded investors in securities and obtained property and money by making false and misleading statements. On July 11, 2022, he was sentenced to 3 ½ to 10 ½ years in prison. Eckstein was also ordered to pay restitution of $6,807,770.52.
The SEC barred Eckstein from associating with any broker, dealer, transfer agent, municipal security dealer, transfer agent, or statistical rating organization, and from participating in any offering of a penny stock.
COVID-19 Face Mask Fraud
Issac H. Sutton, 59, of New York, New York, on May 11, entered an offer of settlement for an SEC Order. Sutton, who was never registered as a broker-dealer with the SEC, was found guilty of fraud or deceit on the purchaser in the offer or sale of securities.
Sutton was CEO and director of Corporate Universe from July 2020 through March 2022, when he resigned. During that time, he was the company’s only officer, director, and employee. Though never registered with the SEC, he participated in an offering of Corporate Universe stock, a penny stock.
On November 4, 2020, Corporate Universe acquired 51 percent of Medicevo, which held the exclusive North American rights to distribute graphene face masks during the COVID-19 pandemic. Sutton owned and controlled Medicevo for the purpose of distributing face masks purchased from a China manufacturer.
On December 1, 2020, Sutton caused Medicevo to issue a press release with misleading and unsupported claims that its product was proven to kill the virus that causes COVID-19. Corporate Universe’s stock price and trading volume significantly increased after the issuance of the press release.
The SEC barred Sutton from associating with any broker, dealer, transfer agent, municipal security dealer, transfer agent, or statistical rating organization, and from participating in any offering of a penny stock. He was also ordered to pay the SEC a civil money penalty of $25,000.
Bank Fraud Conspiracy and Identity Theft
Alaa Ahmad, 36, of Boca Raton, Florida, on May 16, entered an offer of settlement for an SEC Order. On April 29, 2021, Ahmad pled guilty to bank fraud conspiracy and conspiracy to commit aggravated identity theft.
From October 2012 to January 2017, Ahmad was a registered representative with an SEC-registered broker-dealer. From October 2014 to April 2017, he schemed to defraud investors to obtain money, assets, credits, funds, and other property by making false representations and promises. As a result, funds were misappropriated from customers’ bank accounts.
The SEC barred Ahmad from associating with any dealer, broker, transfer agent, municipal security dealer, transfer agent, or statistical rating organization, and from participating in any offering of a penny stock.
Another Case of Bank Fraud Conspiracy and Identity Theft
Abed Ahmad, 39, of Delray Beach, Florida, on May 16, entered an offer of settlement for an SEC Order. Ahmad previously pled guilty to bank fraud conspiracy and aggravated identity theft.
From October 2012 to January 2017, Ahmad was a registered representative with an SEC-registered broker-dealer. Between November 2012 and June 2017, he schemed to defraud investors by making false promises and representations, leading to the loss of funds in customers’ bank accounts.
The SEC barred Ahmad from associating with any broker, transfer agent, dealer, municipal security dealer, transfer agent, or statistical rating organization, and from participating in any offering of a penny stock.
Targeting African-American Christians
Marcus K. Moon, 48, of Miramar, Florida, on May 18, entered an offer of settlement for an SEC Order. Moon was found guilty of improperly offering investment advisory and brokerage services.
From 2017 to 2021, Moon was a registered representative of an SEC-registered broker-dealer, and held a Series 6 license that allowed him to sell variable annuities, mutual funds, and certain insurance products. He also was the owner, principal, and sole employee of Increase Financial Strategies, and its successor, Faith Financial Strategies. From 2020 to 2021, Moon entered into brokerage agreements and trading activity with investors, without his employer’s consent or knowledge.
Moon was not authorized by his employer or licensed by FINRA to purchase or sell common stock for others. However, he entered into brokerage agreements with nine investors, and accessed their online brokerage accounts with their consent to conduct hundreds of trades. Moon made multiple misstatements to investors, and predominantly targeted African-American investors of Christian faith. His trading resulted in about $31,800 in losses to investors, who collectively paid Moon $3,000 in fees for his services.
After failing to respond to FINRA’s requests for information, FINRA issued a Notice of Suspension in 2021. In January 2022, Moon was barred from association with any FINRA member.
The SEC barred Moon from associating with any dealer broker, transfer agent, municipal security dealer, transfer agent, or statistical rating organization, and from participating in any offering of a penny stock.
