SEC Charges Marc Henry Menard in Fraud Case
The Securities and Exchange Commission (SEC) filed a lawsuit against Marc Henry Menard in the Eastern District of New York.
The U.S. SEC has filed a lawsuit in the Eastern District of New York Federal Court against Marc Henry Menard, accusing him of defrauding over 50 investors, many of whom are from the Haitian-American community, with the amount involved being at least $1.65 million.
According to the SEC's complaint, from July 2021 to September 2023, Menard attracted investments by making false statements about his past investment successes, the use of funds, and investment returns. Menard promised many investors that the funds would be used for stock and options trading and guaranteed monthly interest payments of 10% to 20%.
However, the complaint states that Menard was not the successful investor he claimed to be. In reality, he lost nearly $700,000 while trading securities, with these funds primarily coming from investors.
Further allegations reveal that Menard misappropriated a significant portion of the investor funds for personal expenses, including the purchase of luxury vehicles, international travel, gifts, rent, and used a Ponzi-like scheme to pay interest to earlier investors.
Additionally, the complaint alleges that Menard transferred substantial investor funds to Laesha Jean-Louis, with whom he has a romantic relationship.
Finally, the complaint charges that when Menard could no longer pay the promised interest or return the principal to investors, he covered up his fraudulent activities with more lies.
In the lawsuit filed in the Eastern District of New York Federal Court, the SEC accuses Menard of violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, as well as Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, civil penalties, and a ban on Menard serving as an officer or director of any public company.
The complaint also names Jean-Louis as a relief defendant, seeking the return of ill-gotten gains plus prejudgment interest.
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