This made our day (though of course we feel for the victims).The SEC has charged Florida “investor” Gurudeo “Buddy” Persaud with concealing from his clients the fact that his investment strategy was based on the moon.
“The SEC alleges that in making trading decisions, Persaud chiefly relied on an Internet service that provided directional market forecasts based on lunar cycles and gravitational pull. Persaud’s strategy was premised on the idea that gravitational forces affect mass human behaviour, and in turn, the stock market. For example, Persaud believed that when the moon exerts greater gravitational pull on the Earth, people feel dejected and are more inclined to sell securities.”
And from the actual complaint:
“Count 34. Persaud failed to disclose he would trade investors’ contributions based on lunar
cycles and the gravitational pull between Earth and the moon.”
Persaud allegedly blew $415,000, about half of his clients’ contributions, “to support his and his family members’ lifestyles,” the complaint says.
The SEC does not name the website, but here’s one we found.