A Florida-based RIA has gotten caught up in a case of identity theft, with unnamed bad actors impersonating the firm on WhatsApp to offer false opportunities to make money.
On Friday, Capital Wealth Planning issued a public statement warning the public of “unknown rogue elements” that were masquerading as CWP and its founder and CEO, Kevin Simpson on WhatsApp.
In a post on its website, CWP laid out several points to distance itself from the WhatsApp solicitations, starting with the fact that it does not utilize WhatsApp as a platform to market or promote its services.
It noted further that it exclusively collaborates with registered advisors, providing investment advice strictly to clients with whom it has established contractual relationships. Moreover, CWP conducts trades on a discretionary basis, allowing it to execute transactions without needing to contact clients directly.
CWP added that as a registered investment advisor, it adheres to stringent regulatory requirements, ensuring that all clients receive its Form ADV, Parts 2A, 2B, and 3, before entering into any contractual agreement. This transparency is a cornerstone of their client relationships and compliance practices.
The Naples, Florida-based firm further clarified that it does not offer stock recommendations to unknown individuals, a practice that would breach its stringent code of ethics designed to maintain integrity and trust.
Addressing specific false claims made in the impersonating messages, CWP unequivocally stated that it does not have any "VIP Members." This term, used in the fraudulent communications, is entirely fictitious and does not reflect CWP’s business model or client categorization.
Additionally, the firm stated that it does not engage in the payment of "cooperation commissions," despite the unfounded claims propagated in the WhatsApp posts.
“Upon discovering these sham communications, CWP has alerted local law enforcement, the Federal Bureau of Investigation, the Securities and Exchange Commission and has asked Whatsapp to take down the offending false posts as they seem to violate its own Terms of Service,” CWP said.
Despite increased public awareness of online scams and digital fraud, there’s been no shortage of bad actors deceiving investors or firms in an effort to gain access to their money or personal information.
In one recent episode in April, Finra warned its members of a phishing campaign that impersonates two key members of its leadership, with emails coming from a bogus domain “data-finra.org.”
According to a federal charges Bradley Heppner, 60, received more than $150 million in payments through funneling money from GWG Holdings to a shell company.
A $1B fund allegedly skimmed 30% off the top, then swapped cash for locked-up stock.
Insiders allegedly rewrote projections three times in four days.
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