Unlicensed Broward man lost Black church members $31,000 in stock trades, the SEC says
“Predominanetly targeting African-American investors of the Christian faith,” the Securities and Exchange Commisison said, a Miramar insurance agent lied about his and his business’ licensing before losing $31,000 of those investors money.
Court documents say Marcus Moon, officially, doesn’t admit or deny the SEC complaint’s claims. But, those same documents say Moon has agreed to a $31,080 civil money penalty and disgorgement of $3,000 plus $158 interest. The disgorgement covers what the complaint says were account setup fees Moon charged nine clients.
Moon, 49, sold his Miramar home in 2022 and now lives in a Falls Church, Virginia apartment with his wife.
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Increase Financial Strategies and Faith Financial Strategies
The SEC says Moon held a Series 6 license, which the Financial Industry Regulatory Authority (FINRA) says allows the holder to buy or sell mutual funds; variable annuities; variable life insurance; unit investment trusts; and municipal fund securities.
What it doesn’t allow Moon to do is buy or sell stocks or sell investment advise.
After getting that license in 2017, the SEC complaint says, Moon went to work for “an SEC-registered broker-dealer.” Profile photos on Moon’s Facebook page identify that broker-dealer as New York Life, which had its South Florida office in Sunrise. One of those profile photos feature Moon, the New York Life logo and the claim, “My Integrity is My Service.”
State records say Marcus K. Moon registered Increase Financial Strategies to do business in Florida on March 31, 2020, using his home, 16331 SW 32nd St. in Miramar as the company’s address. He changed the name ot INC Financial Strategies on May 11, 2020. Moon would also operate the business under the name “Faith Financial Strategies.”
(Broward County Property Records say Moon and his wife lived at 16331 SW 32nd St. after buying the home for $351,000 in 2010. Wells Fargo filed foreclosure papers in Broward County court in February 2022, claiming the Moons owed $211,025 in principal. The Moons sold the house for $719,000 last June 2.)
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The SEC says Moon promoted himself through Increase Financial Strategies’ website and social media accounts as “a financial services professional offering broker-dealer and advisory services through Increase Financial for a fee,” or exactly what he wasn’t licensed to do. Also, he sold himself through networking as a Miami-Dade Chamber of Commerce member, through a group of local Black business executives and even a financial literacy seminar at an area college.
Moon passed around Increase Financial’s client agreement, which had a paragraph requiring the client to give Moon the account username and password to “access the account for the purchase, sell and management of stocks, bonds, ETF’s and mutual funds.”
Hiding his side hustle from a disapproving New York Life, Moon signed up nine clients from March 2020 through February 2021.
“Using the clients’ account access credentials to log onto their online trading accounts, Moon purchased and sold stocks in their respective accounts,” the complaint said. “When one online broker-dealer shut down some of the clients’ accounts, after detecting that Moon was accessing those accounts and trading (instead of the account owners), Moon encouraged those clients to open new accounts at other online brokers.”
The SEC said those nine clients owned 18 accounts through which Moon “conducted hundreds of trades that resulted in approximately $31,800 in losses.”
Increase Financial was dissolved on Jan. 19, 2021. New York Life fired Moon in March 2021.
The SEC said this was part of the Miami Regional Office’s Fraud Against Minority Groups Initiative. The Miami office’s Paul Hopker and Hughens Dolisca investigated with help from George Franceschini and Andrew G. Murray. Court dockets say Dolisca and Teresa Verges represented the SEC. No attorney for Moon was listed.
