Gurudeo "Buddy" Persaud accused in astrology based ponzi scheme

8:27 PM, Jun 21, 2012   |    comments
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MIAMI (AP) - Federal officials say a former central Florida broker ran an astrology-based Ponzi scheme.

The Securities and Exchange Commission reported Thursday that Gurudeo "Buddy" Persaud falsely guaranteed investors returns of 6-18 percent, but he did not reveal that his trading strategy was based on his belief that markets are affected by gravitational forces.

Persaud raised more than $1 million between July 2007 and January 2010. 

A complaint filed in federal civil court says Persaud lost $400,000 of investor funds through his trading and diverted at least $415,000 for his personal expenses.

The SEC is seeking a return of ill-gotten gains, civil penalties and an injunction against Persaud. He has not been charged criminally.

A message left at an Orlando listing for Persaud wasn't immediately returned.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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