An Ohio man has been charged by the United States Securities and Exchange Commission (SEC) for his alleged role in defrauding investors of more than $33 million in crypto-assets. 

According to the complaint filed with the New York federal court Monday, Michael Ackerman was accused of raising at least $33 million from 150 investors via a cryptocurrency trading scheme. 

Ackerman established the Q3 Trading Club in 2017 alongside two unnamed partners, one of which was identified as a surgeon. Together, the fraudulent investment group targeted clients through Facebook, allegedly going after doctors through community groups such as “Physicians Dads Group.”

According to the complaint, Ackerman was accused of promising investors extraordinary profits through his algorithm and allegedly doctored trading papers to falsely show Q3 holding more than $310 million in assets, despite having only $6 million. Investors were told they would receive a 50 percent share in the account’s profits, while Ackerman and his accomplices pocketed undisclosed licensing fees. 

The SEC also alleges that Ackerman used investor funds for his own benefit, spending more than $7.5 million to purchase a house, expensive jewelry and multiple cars. 

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