SEC charges 2 Oakland Co. men in $1.4M fraud case
Two Oakland County men have been charged with fraud over an alleged $1.4 million phony day-trading scheme, federal officials said.
Jeffrey Goldman, of West Bloomfield, and Christopher Eikenberry, of Birmingham, are accused of defrauding customers of the Nonko Trading company, according to the U.S. Securities and Exchange Commission.
Officials said the U.S. Attorney’s Office for the District of New Jersey has also filed criminal charges against Goldman and Eikenberry for the same crime.
The agency said the company advertised itself as a state-of-the-art day-trading firm but provided customers with training accounts that simulated actual trading accounts. Its employees then pocketed customers' deposits and used the money for personal expenses as well as Ponzi-scheme like payments to customers who wanted to close their accounts, officials said.
“As alleged in our complaint, Goldman and Eikenberry actively concealed their involvement in the alleged fraud and took steps to evade U.S. broker-dealer registration requirements,” Joseph Sansone, chief of the SEC Enforcement Division’s Market Abuse Unit, said in a statement. “But, behind the scenes, they were active and knowing participants in the scheme, which caused losses to more than 260 investors.”
The SEC previously charged four others and two entities in connection with the Nonko fraud.
Two of the individuals, Naris Chamroonrat and Adam Plumer, have settled the SEC’s charges. Chamroonrat also pled guilty in a parallel criminal case and is awaiting sentencing.
Criminal charges against two other individuals charged by the SEC, Yaniv Avnon and Ran Armon, are pending.