(HedgeCo.Net) The Securities and Exchange Commission has charged Money Magnet Platinum Membership Initiative LLC (“MMPMI”) and its principal, LaKenya Hopkins, with fraudulently raising funds and misappropriating those funds from investors.
The SEC’s complaint alleges that, between late 2020 and early 2021, Hopkins and MMPMI solicited more than 100 investors, initially targeting investors in New York City, who introduced Hopkins to investors from around the country. According to the complaint, the Defendants pitched investors securities that they called “magnets” and falsely promised investors that, for every $1,000 invested, they would receive total returns of $8,000 per month-despite the fact that Defendants had no basis to support such unrealistic returns. The complaint further alleges that, ultimately, at least 100 investors invested between $1,000 and $10,000 with Defendants, totaling approximately $277,000. In addition, Hopkins allegedly misappropriated over $180,000 of investor funds to pay rent on a luxury Manhattan apartment and to buy herself clothes, jewelry, and furniture.
The SEC’s complaint, filed in federal district court in Manhattan, charges MMPMI and Hopkins with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties from the Defendants.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York filed criminal charges against Hopkins.