Dark Side of the Moon

The SEC busted a guy who was running a Ponzi Scheme. The investments decisions were based on lunar cycles. Also, they lost money.

32. However, Persaud did not tell investors that in making at least 90% of his trading decisions, he relied on directional market forecasts based on lunar cycles and gravitational pull provided by an internet service.

33. The primary principle underlying Persaud’s trading strategy was that the gravitational pull between the moon and Earth affects mass human behavior, which in tum affects the stock markets. For example, Persaud believed that when the moon is positioned so there is a greater gravitational pull on humans, they feel down and are therefore more inclined to sell securities in the markets.

34. Persaud failed to disclose he would trade investors’ contributions based on lunar cycles and the gravitational pull between Earth and the moon.

Posted by on June 22nd, 2012 at 9:16 am


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