U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25918 / December 28, 2023
Securities and Exchange Commission v. Diana Mae Fernandez, No. 5:23-cv-00372 (N.D. W.V. filed Dec. 21, 2023)
SEC Charges Self-Styled Entrepreneur with Offering Fraud
On December 21, 2023, the Securities and Exchange Commission charged Diana Mae Fernandez, a former resident of New Jersey most recently living in Serbia, with conducting a $360,000 fraudulent securities offering. Fernandez is currently under arrest in Serbia and awaiting extradition to the United States pursuant to an indictment filed by the United States Attorney’s Office for the Northern District of West Virginia.
The SEC's complaint alleges that, between 2018 and 2020, Fernandez induced investors to participate in the fraudulent securities offering by claiming that she would use their money to invest in, among other things, private and publicly traded companies, crypto assets, and luxury real estate properties, and guaranteeing returns as high as 63 percent. Instead of investing investor funds as promised, Fernandez allegedly used them to pay for her day-to-day living expenses and lavish hotel stays, fund numerous cash withdrawals, and make Ponzi-like payments to earlier investors.
The SEC's complaint, filed in federal district court in the Northern District of West Virginia, charges Fernandez with violations of the antifraud provisions of 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 injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, civil monetary penalties, and an officer-and-director bar against Fernandez.
The SEC's investigation was conducted by Michael F. McGraw in the Philadelphia Regional Office, and was supervised by Scott A. Thompson and Brendan P. McGlynn. The litigation will be led by Christopher Kelly and Gregory Bockin. The SEC acknowledges the assistance and cooperation of the United States Attorney’s Office for the Northern District of West Virginia.