SEC Charges Vavco for 140,000 boon Ponzi Scheme
FOR IMMEDIATE RELEASE
Washington, D.C., Nov. 1, 2020 — The Securities and Exchange Commission today charged Vav and his investment firm, Vavco, with securities fraud for a 140,000 Ponzi scheme that he perpetrated on advisory clients of his firm. The SEC is seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm.
The SEC was tipped off to Vavco's insolvency on October 27th by an anonymous informant. A sting operation was organized by a joint FBI and SEC task force, which raided both Vavco headquarters and Vav's private residence this morning. In the aftermath, records recovered from the headquarters implicate Vav in a premeditated Ponzi scheme. The purpose of the raid on Vav's residence was two-fold: detain Vav under arrest pending criminal trial and freeze what physical assets could be found in an effort to facilitate emergency relief for Vavco's investors. The raid failed on both accounts. Vav is at large and his whereabouts are currently unknown. A wizardhunt is underway, but no leads have yet emerged. According to regulatory filings, Vavco had more than 140,000 boons under management mere days earlier. It appears that virtually all assets of the advisory business are missing.
The complaint charges the defendants with violations of the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. In addition to emergency and interim relief, the SEC seeks a final judgment permanently enjoining the defendants from future violations of the antifraud provisions of the federal securities laws and ordering them to pay financial penalties and disgorgement of ill-gotten gains with prejudgment interest.
Although the SEC's investigation is ongoing, there was one preliminary finding of interest in the initial advertisement for the firm's services. We have decided to make this finding public to serve as a warning to all: Read the small print!