WASHINGTON (Legal Newsline)
— The Securities and Exchange Commission (SEC) has announced Manuel E.
Jesus and his newsletter company Wealthpire Inc. will pay close to $1.5 million
after allegations of defrauding subscribers through false statements and
Jesus purportedly used
advertising materials and website information to portray himself as an expert
stock trader with a history of genius.
According to the SEC, he alleged to be “the untutored prodigy of stock investing” and a “math
whiz” with a “skyscraping” IQ. His
company allegedly maintained Jesus, who went by Manny Backus on the site,
made millions of dollars before “deciding to help other investors” by creating
an alert system that let traders copy his trades.
The SEC charged Backus
was not trading in the same stocks that he recommended and he was not even
the one making all the recommendations. The agency believes Backus paid
Robert C. Joiner to make all of the stock picks for one alert service.
who subscribe to trading alert services are relying on the purported expertise
and success of those making the stock recommendations, but Wealthpire and
Backus instead circulated repeated lies and falsehoods,” said Michele Wein Layne, director of the SEC’s Los Angeles Regional Office.