Barred former Wells Fargo broker James Seijas (CRD# 2392901) is alleged to play a pivotal role in the $35 million Ponzi scheme with the Q3 Trading Club. He was registered with Wells Fargo in Short Hills, New Jersey from 2013 to 2019.
In November 2021, FINRA barred James Seijas after he consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation concerning the Form U5 amendment filed by his former member firm. “The findings stated that the firm filed the amendment to Seijas’ Form U5 disclosing for the first time that he had been named as a defendant in a lawsuit alleging that he had misrepresented investments as part of a Ponzi scheme,” according to FINRA.
The Q3 Trading Club was formed by James Seijas’ and Quan Tran, a certified surgeon, and Michael Ackerman, a former UBS Securities broker, in 2017. It is alleged that the brokerage firm failed to inquire into the activities of Seijas, who is accused of co-masterminding the scheme with Tran and Ackerman.
It is alleged that the Q3 Trading Club was used to pool investor funds to trade crypto assets using a “proprietary algorithm” that helps to generate profits by trading cryptocurrencies.
The investment was promoted to physicians on social media, including in a private Facebook Group “Physicians Dads’ Group.”
According to public records, after the Q3 Trading Club raised $1 million, it became a limited partnership and expanded its reach to $33 million from 150 investors spread across the United States. It is also alleged that just $10 million was used to invest in virtual currencies. At least another $10 million was misappropriated by James Seijas, Tran, and Ackerman for their personal use or lost in unsuccessful trades. It is also alleged that about $4 million in “licensing fees” for access to the proprietary algorithm was diverted to James Seijas, Tran, and Ackerman’s personal bank accounts.
James Seijas Customer Complaints
He has been the subject of two customer complaints in 2020, according to his CRD report:
September 2021. “Claimants alleges that from 2017 to 2019, the financial advisor misrepresented investments as part of a Ponzi scheme.”
April 2022. “Claimants allege that due to Wells Fargo Advisor’s negligence and failure to supervise FA’s malpractices, claimants lost millions of dollars.”
March 2020. “Plaintiff alleges that from August 2017 to December 2019, FA misrepresented investments as part of a Ponzi scheme.” The case was settled for $125,000.
March 2020. “Plaintiff alleges that from August 2017 to December 2019, FA misrepresented investments as part of a Ponzi scheme.”
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Wells Fargo may be liable for investment or other losses suffered by James Seijas’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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