SEC Charges Algorithmic Trader Matthew Melton with Defrauding Investors Out of More Than $1.5 Million

The Securities and Exchange Commission today charged Matthew Melton for fraud in connection with material misrepresentations to investors about the performance of his Price Physics trading algorithm and his misappropriation of more than $1.5 million of investor proceeds.

According to the SEC’s complaint, which was filed in the United States District Court for the Southern District of New York, between April 1, 2018, and October 31, 2020, Melton raised more than $3.4 million from at least 23 investors in Puerto Rico and elsewhere who shared an affinity for outdoor activities. Melton allegedly asserted that he would profitably trade stock index futures through the use of his Price Physics trading algorithm, which, he claimed, had generated consistent returns of 12 percent per month. Contrary to these claims, the complaint alleges, Melton’s trading was consistently unprofitable….

Source: SEC Charges Algorithmic Trader Matthew Melton with Defrauding Investors Out of More Than $1.5 Million