The US Securities and Exchange Commission has lodged fraud charges against an investment advisory firm in Fort Lauderdale in Florida.

The regulator has charged Elm Tree Investment Advisors LLC along with Frederic Elm, its manager, and three related funds and has prevailed upon a judge to freeze assets. The scam has allegedly raised more than $17 million since November 2013. The funds are Elm Tree Investment Fund LP, Elm Tree “e”Conomy Fund LP, and Elm Tree Motion Opportunity LP. Most of the money that Elm, formerly known as Frederic Elmaleh, collected went into 'pyramid payments' to keep disgruntled investors quiet while the alleged scam rumbled on.

As is usual in these cases, Elm allegedly treated the funds as his personal piggy bank, helping himself to a $1.75 million home, luxury cars and jewellery. He is charged with breaking the anti-fraud parts of federal securities laws and SEC anti-fraud rules.