The SFC alleges that the owner of the accounts, Heriberto C. Perez Valdes, was involved in the scheme operated by DFRF Enterprises LLC and DFRF Enterprises, LLC (collectively known as DFRF) and their founder, Daniel Fernandes Rojo Filho, a Brazilian native living in the US.
The DFRF firms are incorporated in the US states of Massachusetts and Florida.
According to documents from the US Securities and Exchange Commission (SEC) dated 30 June 2015, DFRF, Valdes, Filho, along with five other defendants were the subject of a complaint.
The SEC said the defendants’ sales pitch combined stories about lucrative gold mines, promises of remarkable returns, pledges to help the needy, and appeals to join the DFRF “family”.
“There are no gold mines. There is no credit line. There is no charity work."
“The defendants claim that DFRF owns more than 50 gold mines in Brazil and Africa, produces 13 to 16 metric tons of gold per month, and makes a gross return of 100% on every kilogram it produces.
“They also claimed that DFRF has a credit line with a Swiss private bank to triple its available funds, uses 25% of its profits for charitable work in Africa, offers a 10% credit for recruiting new members, and pays 15% per month to investors,” the US regulator said.
Investors’ money was fully guaranteed by a worldwide insurance company, DFRF said.
False and misleading
The SEC stated: “Virtually all of the defendants’ public statements about DFRF have been materially false and misleading.
“There are no gold mines. There is no credit line. There is no charity work. There is no stock registration. There is no insurance. Nevertheless, from June 2014 through May 2015, DFRF raised more than $15m from more than 1,400 investors worldwide.”
The US government filed an indictment against Filho in August 2015, charging him with three counts of wire fraud. He was remanded in custody by the district court of Massachusetts in October 2015.
The SEC’s case against Filho is ongoing with a competency hearing rescheduled for 24 March in the district of Massachusetts.