A U.S. financial advisor had their identity stolen and used to defraud investors, the U.S. Securities and Exchange Commission (SEC) is alleging.
In the U.S. district court for Maryland, the SEC charged Adam Rundle, a former U.S. resident who is now believed to be in South Africa, for allegedly engaging in offering fraud by posing as a registered securities professional and inducing investors to purchase purported securities in a company he created, Robinvest LLC.
In its complaint, the SEC alleged that between November 2021 and January 2024, Rundle defrauded investors by impersonating an advisor and raising approximately US$1.5 million for an investment vehicle that supposedly guaranteed the principal and paid a 4% annual return.
In fact, the regulator alleged that the money wasn’t invested as promised and instead, Rundle misappropriated it, in part to buy crypto, pay personal expenses and to repay a loan — ultimately consuming all of the money.
The SEC also alleged that Rundle used email accounts he created in the name of the advisor and a fake assistant to send falsified offering documents, account statements and performance reports to investors.
The allegations have not been proven.
The SEC’s complaint seeks injunctive relief, civil penalties and disgorgement.