mikedillardscam
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Here is an article on the Dillard / Senen fiasco:
Courthouse News Service Securities Law
Battle Brews Between Investment Educators
By DEE MOORE
(CN) – Australian financial adviser Senen Pousa, who made a name for himself on the Internet and television as an investment guru and the man behind the YouTube phenomena The Outsider Code and ProphetMax videos, is facing a class action lawsuit led by investment educator Michael Dillard.
According to the lawsuit “a large number of individuals have been defrauded by Senen Pousa, his business (known as ProphetMax), and other individuals who are apparently working with Pousa or are otherwise affiliated with his scam.”
Investment Intelligence Corporation does business as ProphetMax, and Pousa also owns a controlling interest in IB Capital FX LLP. Both companies are located in Australia. The complaint also names Global Forex Management and U.S. residents Kevin Clark and Joel Friant.
Defendants, according to the complaint, “promised people that he knew how to generate large returns with little risk. He also represented that he had been wildly successful in the past with his investment concepts and that he had substantial assets as a result,” the complaint states.
Pousa’s claims interested Dillard, who as an educator hoped to be able to provide a new source of investment information to his subscribers.
“His promises convinced many individuals to participate in his investment scam,” the lawsuit says. Pousa promised investors that they had the potential to make “in excess of 100% per year” on their investments.
Dillard hosted Pousa several times on his website and featured him in several “webinars” in addition to funneling his own money into Pousa’s business IB Capital. This led to many of his subscribers also investing with Pousa.
Dillard said that he repeatedly asked Pousa for financial documents to substantiate his claims. He requested “audited financial statements and other records” that the ProphetMax owner kept promising him. The financial advisor claimed that faxed copies of records would be “too low quality,” but the documents never came.
“Despite Dillard’s repeated requests, Pousa never produced any audited financial statements or any financial documents,” the complaint says.
He did, however, receive a letter from an unnamed third party vouching for Pousa and his trading group.
Things began to smell very fishy to Dillard during his second webcast with Pousa, when during the broadcast, “Pousa stated that IIC was merely a research firm and as such had no involvement with any financial transactions. This contradicted his earlier statements” the complaint states.
The situation took an even stranger turn when Pousa claimed that his bank and merchant accounts were “disabled due to the high volume of ProphetMax sales.”
He then later claimed in a Skype call that because his financial advice made investing available to the common man he had “offended the old guard banking elite” who retaliated by freezing his banking accounts.
Investors, according to the complaint, were recently hit with the news when they logged into their accounts that “approximately 63% of their trading capital was lost in overnight currency trading.”
Though Pousa claimed that the losses were a result of simple human error made by a company trader, he has “stopped meaningfully responding to requests for information and has provided no help to any investor in getting their funds back,” the lawsuit states.
Since then, Dillard claims that Pousa has slandered him and his educational website to ProphetMax clients and locked him out of his ProphetMax account. Pousa and IB Capital have severed ties with no explanation, Dillard claims.
Dillard claims that “the purpose of the lawsuit is to get information about what happened and, most important, get investors back their money.”
The complaint was filed in the Travis County Texas District Court. Investors are represented by Jeffrey Tillotson and John Volney of Lynn Tillotson Pinker & Cox LLP in Dallas.
Courthouse News Service Securities Law
Battle Brews Between Investment Educators
By DEE MOORE
(CN) – Australian financial adviser Senen Pousa, who made a name for himself on the Internet and television as an investment guru and the man behind the YouTube phenomena The Outsider Code and ProphetMax videos, is facing a class action lawsuit led by investment educator Michael Dillard.
According to the lawsuit “a large number of individuals have been defrauded by Senen Pousa, his business (known as ProphetMax), and other individuals who are apparently working with Pousa or are otherwise affiliated with his scam.”
Investment Intelligence Corporation does business as ProphetMax, and Pousa also owns a controlling interest in IB Capital FX LLP. Both companies are located in Australia. The complaint also names Global Forex Management and U.S. residents Kevin Clark and Joel Friant.
Defendants, according to the complaint, “promised people that he knew how to generate large returns with little risk. He also represented that he had been wildly successful in the past with his investment concepts and that he had substantial assets as a result,” the complaint states.
Pousa’s claims interested Dillard, who as an educator hoped to be able to provide a new source of investment information to his subscribers.
“His promises convinced many individuals to participate in his investment scam,” the lawsuit says. Pousa promised investors that they had the potential to make “in excess of 100% per year” on their investments.
Dillard hosted Pousa several times on his website and featured him in several “webinars” in addition to funneling his own money into Pousa’s business IB Capital. This led to many of his subscribers also investing with Pousa.
Dillard said that he repeatedly asked Pousa for financial documents to substantiate his claims. He requested “audited financial statements and other records” that the ProphetMax owner kept promising him. The financial advisor claimed that faxed copies of records would be “too low quality,” but the documents never came.
“Despite Dillard’s repeated requests, Pousa never produced any audited financial statements or any financial documents,” the complaint says.
He did, however, receive a letter from an unnamed third party vouching for Pousa and his trading group.
Things began to smell very fishy to Dillard during his second webcast with Pousa, when during the broadcast, “Pousa stated that IIC was merely a research firm and as such had no involvement with any financial transactions. This contradicted his earlier statements” the complaint states.
The situation took an even stranger turn when Pousa claimed that his bank and merchant accounts were “disabled due to the high volume of ProphetMax sales.”
He then later claimed in a Skype call that because his financial advice made investing available to the common man he had “offended the old guard banking elite” who retaliated by freezing his banking accounts.
Investors, according to the complaint, were recently hit with the news when they logged into their accounts that “approximately 63% of their trading capital was lost in overnight currency trading.”
Though Pousa claimed that the losses were a result of simple human error made by a company trader, he has “stopped meaningfully responding to requests for information and has provided no help to any investor in getting their funds back,” the lawsuit states.
Since then, Dillard claims that Pousa has slandered him and his educational website to ProphetMax clients and locked him out of his ProphetMax account. Pousa and IB Capital have severed ties with no explanation, Dillard claims.
Dillard claims that “the purpose of the lawsuit is to get information about what happened and, most important, get investors back their money.”
The complaint was filed in the Travis County Texas District Court. Investors are represented by Jeffrey Tillotson and John Volney of Lynn Tillotson Pinker & Cox LLP in Dallas.
