The attorneys at Eccleston Law have launched an investigation of Florida broker Gurudeo “Buddy” Persaud. The SEC claims that he lured investors into investing in his firm White Elephant Trading Company LLC by making misleading and false guarantees, and not revealing his eccentric trading strategies.
Following the classic attributes of a Ponzi scheme, Persaud used investors’ money to fund payments to other investors. He also lost $400,000 of investor funds through trading while spending at minimum $415,000 on personal expenses. Persaud continued to create phony account statements to hide losses, and blatantly lied to his investors, leading them to believe they were secure.
According to the SEC, Persaud’s mystical way of determining trade decisions was intentionally hid from his investors. Persaud relied completely on a website that predicted market forecasts based on lunar cycles and gravitational pull. This premise is based on the idea that these astrological forces affect human behavior, and therefore also the stock markets. For instance, Persaud assumed people were more inclined to sell securities when the felt dispirited by the moon’s strong gravitational pull. It was these sorts of assumptions that Persaud used to develop his trade tactics.
Persaud was a registered representative at a Florida-Based broker-dealer, but ran his own firm “White Elephant Trading Company LLC” on the side. He raised more than $1 million dollars from at least 14 investors between July 2007 and January 2010.
If you are an investor that has suffered losses investing with Gurudeo “Buddy” Persaud or White Elephant Trading Company LLC, please contact one of our attorneys at 312-332-0000 to discuss your recovery options. Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by securities fraud, unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct.