SEC Charges a “Self-Proclaimed Entrepreneur” with Fraud for Misappropriating Funds After Promising to Invest in Cryptocurrencies

The U.S. Securities and Exchange Commission said "self-proclaimed entrepreneur" Diana Mae Fernandez conducted "fraudulent securities offerings" claiming to use client funds to invest in cryptocurrencies, among other things, when in fact she misappropriated the funds. Promising investments with guaranteed returns of up to 63%, Fernandez, 37, claimed to invest client funds in cryptocurrencies, privately and publicly traded companies, and luxury real estate, the SEC said in an announcement of the lawsuit released Thursday. She raised approximately $364,000 from at least 20 investors through two "stand-in entities" called "The Self-Made Success" and "Diana Mae K., LLC," the agency filed with the West on Dec. 21. states the complaint filed in the Northern District of Virginia. The SEC added that Fernandez recruited many investors through church groups and social networks focused on entrepreneurs. "Rather than invest investor funds as promised, Fernandez commingled them with her own funds and used investor funds to pay for her daily living expenses and lavish hotel accommodations," the SEC said in the complaint. Funding large cash withdrawals and Ponzi-style payments to early investors.” (The Block)