‘Rags-to-Riches’ Fraudsters Will Pay SEC $4.1M for Ad Scam

A group of online marketers who used fake “rags-to-riches” video ads to trick investors into using their brokerage services will pay more than $4.1 million to settle an SEC complaint.

Investors lost “tens of millions of dollars” to the internet marketers, whose videos purported to show real people making quick returns, according to a Sept. 27 Securities and Exchange Commission release. The videos actually featured paid actors, and the marketers kept the investors’ money, the agency said.

The SEC’s investigation revealed 10 individuals and two companies involved in the marketing scheme. Seven — Justin Blake Barrett, William E. Berry ...