Source: http://www.scribd.com/doc/97924951/Persaud-Complaint
Timestamp: 2014-08-29 19:24:24
Document Index: 90844695

Matched Legal Cases: ['§77', '§77', '§ 78', '§ 240', '§80', '§275', '§ 77', '§80']

P. 1Persaud ComplaintPersaud ComplaintRatings: (0)|Views: 1,763
|Likes: 0Published by rabdillMore info:Published by: rabdill on Jun 22, 2012Copyright:Attribution Non-commercialAvailability:Read on Scribd mobile: iPhone, iPad and Android.download as PDF, TXT or read online from ScribdFlag for inappropriate content|Add to collectionSee moreSee lesshttp://www.scribd.com/doc/97924951/Persaud-Complaint06/22/2012pdftextoriginal UNITED STATES DISTRICT
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BUDDY PERSAUD,Defendant.
COMPLAINTPlaintiff Securities and Exchange Commission alleges:I. INTRODUCTION
The Commission brings this action to enjoin Gurudeo "Buddy" Persaud fromviolating the registration and anti-fraud provisions
From no later than July 2007 until at least January 2011, Persaud, directly andthrough his company, While Elephant Trading Company LLC, operated an offering fraud that,by November 7, 2007, devolved into a Ponzi scheme. All told, Persaud raised more than
million from investors through this fraudulent scheme.
Persaud solicited investments for White Elephant primarily though personaldiscussions where he promised to pay investors 6% to 18% annual returns. Persaud toldprospective investors this was a risk-free investment
White Elephant's private equity fund,which would invest in the futures market and other markets.4. Persaud touted his experience
a certifiedfinancial planner and gave investors his personal guarantee their principal contributions weresecure. He made numerous misrepresentations and omissions to investors, foremost among them
Case 6:12-cv-00932-JA-GJK Document 1 Filed 06/20/12 Page 1 of 18 PageID 1
failing to disclose his trading strategies were based on lunar cycles and the gravitational pullbetween Earth and the moon.
Persaud also omitted disclosing that he misappropriated approximately $415,000,representing nearly half
the investors' contributions, to support his and his family members'lifestyles.6.
the investor money Persaud did trade, he lost $400,000, and he traded for netlosses beginning the first month he received investor contributions. To hide this from investors,Persaud repaid earlier investors with money collected from new investors in typical Ponzischeme fashion.
Through this fraudulent conduct, Persaud violated Sections 5(a) and (c) [15U.S.C. §77e(a),(c)] and 17(a)(I), (2), and (3)
1933 ("Securities Act") [ISU.S.C. §77q(a)]; Section
1934 ("Exchange Act") [15
§ 78j(b)] and Exchange Act Rule
IOb-5
[17 C.F.R. § 240.lOb-5]; Sections 206(1), 206(2),and 206(4)
the Investment Advisers Act ("Advisers Act") [U.S.C. §80b-6(1),(2), and (4)]; andAdvisers Act Rules 206(4)-8(a)(I) and (2) [17 C.F.R. §275.206(4)-8].
The Commission asks the Court to enter: (1) a permanent injunction restrainingand enjoining Persaud from violating the federal securities laws; (2) an order directing Persaud todisgorge all ill-gotten gains, with prejudgment interest; and (3) an order directing Persaud to paycivil penalties.
Case 6:12-cv-00932-JA-GJK Document 1 Filed 06/20/12 Page 2 of 18 PageID 2
Persaud, 47, resides
Orlando, Florida. He was a registered representative witha Florida-based broker-dealer from September 2003 until August 2010. Persaud operated WhiteElephant, a now inactive Florida limited liability company he created
White Elephant was a Florida company Persaud formed in June 2007 with itsprincipal place
business in Orlando, Florida. Persaud named two
the managingmembers. However, Persaud managed and operated White Elephant. White Elephant was aprivate equity fund that purportedly invested in securities on the national markets. WhiteElephant never registered an offering or class
securities under the Securities Act or theExchange Act, and was never registered with the Commission
any capacity. On September23, 2011, the Florida Secretary
State administratively dissolved White Elephant for failure tofile
This Court has jurisdiction over this action pursuant to Sections 20(b ), (d), and22(a)
the Securities Act [15 U.S.C. § 77t(b), t(d), and v(a)]; Sections 21(d) and
78u(d), and 78aa]; and Section 214
the Advisers Act
U.S.C.§80b-14].
This Court has personal jurisdiction over Persaud, and venue is proper
Florida because many
his acts and transactions constituting violations
theSecurities, Exchange, and Advisers Acts occurred in the Middle District
Florida. More
Case 6:12-cv-00932-JA-GJK Document 1 Filed 06/20/12 Page 3 of 18 PageID 3