SEC Obtains Final Judgments Against Operators of Fake Trading Scheme Known as “EmpiresX”

The Securities and Exchange Commission has obtained final judgments against Empires Consulting Corp. (“EmpiresX”), and its founders Emerson Sousa Pires and Flavio Mendes Goncalves, whom the agency charged with a fake trading scheme.

According to the SEC’s complaint, filed June 30, 2022, Pires and Goncalves operated a purported hedge fund known as EmpiresX. Since at least late 2020, EmpiresX sold investments touting daily profits of one percent earned by a trading “bot” or by manual trading. The complaint alleges that, in reality, the bot was fake, the manual trading resulted in significant losses, and the defendants only transferred a small portion of investors’ funds to EmpiresX’s brokerage account. Instead, the defendants allegedly misappropriated large sums of investors’ money to lease a Lamborghini, shop at Tiffany & Co., make a payment on a second home, and make other personal expenditures.

Source: SEC Obtains Final Judgments Against Operators of Fake Trading Scheme Known as “EmpiresX”