Victims of a cryptocurrency investment scam are suing Wells Fargo after accusing an employee of being involved in the scam. Q3 Investment Recovery Vehicle (Q3IRV), the entity behind the class action lawsuit, is representing the more than 100 victims in their bid to reclaim funds having been duped by Q3 Entities and handed over a total of $35 million.
Investors’ Money Funded Luxury Lifestyle
The lawsuit claims that the scam operated between August 2017 and December 2019, soliciting funds from investors and supposedly trading cryptocurrencies with them using an algorithm called ‘Ackerman’.
In fact only a small percentage of the funds were used for trading, with rest allegedly transferred to the founders’ personal bank accounts and spent on various luxury items such as properties and vehicles.
Wells Fargo Partially Responsible?
The suit targets five individuals allegedly connected with the scam, including James Seijas, a financial advisor for Wells Fargo Advisors. Q3IRV claims that Wells Fargo is partly responsible for Seijas’ role in the scam because they failed to adhere to their own policies and didn’t enquire about his position with Q3 Entities at the time of his employment with them.
Classic Crypto Investment Scam
The Q3 Entities approach ticks many of the boxes associated with a classic crypto investment scam:
- They claimed their trading algorithm was netting them “tremendous” and “consistent” returns, with a low “mathematically guaranteed loss ratio”
- Monthly reports were manipulated reflecting false gains
- Gains were automatically put back into the trading pot, making it difficult for investors to withdraw their funds
The defendants are yet to respond to the allegations.
