Matrix Capital Markets (Matrix) and firm representative, Nicholas Mitsakos of San Francisco, California were named Respondents in a Securities and Exchange Commission (SEC) complaint that alleges the firm, acting through Mr. Mitsakos, falsely marketed themselves and used clients’ funds for their own personal use. The SEC alleges from approximately the spring of 2014 to the present, the Respondents made false and misleading statements to prospective investors and financial institutions in order to raise funds and increase clientele.
The SEC alleged that Mr. Mitsakos made numerous false and misleading statements included lying about investment returns and their broker and auditor relationships. According to the SEC, the Respondents marketed themselves as experienced money managers with a highly successful track record. They claimed to be managing millions, when in fact they did not manage client assets at all, and allegedly fabricated a hypothetical portfolio of investments earning 20-66% annual returns.