The Securities and Exchange Commission (SEC) in the US has charged with fraud two men from the state of Michigan for running a Ponzi scheme with a fake forex and CFD broker Nonko Trading.

SEC says the two men have profited from a scam scheme to steal at least 1.4 million USD from Nonko Trading clients.

In the presentation on its website Nonko Trading says it is a “state-of-the-art trading platform for day-trading professionals”. However SEC investigators have proved the “trading accounts” provided to customers by Nonko Trading merely simulated actual trading. In the same time clients’ money were used for personal expenses and Ponzi-like payments to selected customers.

According to the regulator Nonko Trading deliberately targeted inexperienced traders, luring them with generous leverage, good trading conditions and a low minimum deposit requirement.

“As alleged in our complaint, Jeffrey Goldman and Christopher Eikenberry actively concealed their involvement in the alleged fraud and took steps to evade U.S. broker-dealer registration requirements,” said Joseph G. Sansone, Chief of the SEC Enforcement Division’s Market Abuse Unit. “But, behind the scenes, they were active and knowing participants in the scheme, which caused losses to more than 260 investors.”

The U.S. Attorney’s Office for the District of New Jersey also announced criminal charges against Goldman and Eikenberry.

SEC has already charged four other individuals and two entities in connection with the Nonko Trading fraud.