According to reports, former broker Gurudeo “Buddy” Persaud was sentenced to 3 years in prison for defrauding investors out of more than $1 million. Persaud reportedly started a private equity fund called the White Elephant Trading Company in 2007, promising investors returns between six and eighteen percent. In addition, he used an unusual trading strategy that was paced on lunar cycles that may have attracted some investors. However, a significant portion of the funds collected from investors was allegedly used for personal expenses. Furthermore, Persaud allegedly used money from new investors to pay old investors.
Although Persaud was ordered to pay more than $900,000 in restitution as part of his plea agreement, it is unknown whether or not Persuad has the money to make the payment. As such, The White Law Group is investigating other avenues of recovery on behalf of investors.
When a FINRA affiliated broker, like Persaud, conducts business outside of the firm with whom he is registered, the activity may be considered “selling away.” If a registered broker “sells away” from his firm, the brokerage firm may still be liable for negligent supervision and may be responsible for investment losses in a FINRA dispute resolution claim.
According to BrokerCheck, Persuad worked with the FINRA registered firm, Money Concept Capital Corp., from November 2009 to September 2010.
If you invested with Gurudeo Persaud while he worked with a FINRA registered firm and would like to discuss your litigation options, please call the securities attorney of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.Tags: Gurudeo Persaud arrest, Gurudeo Persaud class action, Gurudeo Persaud fraud, Gurudeo Persaud investigation, Gurudeo Persaud lawsuit, Gurudeo Persaud ponzi scheme, Gurudeo Persaud restitution, Gurudeo Persaud sentence, White Elephant Trading Company class action, White Elephant Trading Company fraud, White Elephant Trading Company investigation, White Elephant Trading Company lawsuit, White Elephant Trading Company ponzi scheme, White Elephant Trading Company restitution Last modified: May 31, 2023