NEW JERSEY — New Jersey regulators have taken action to shut down an alleged investment fraud scheme operating through a WhatsApp chat group that cost at least one state resident $64,000, officials said.
Attorney General Jennifer Davenport and the Division of Consumer Affairs announced that the Bureau of Securities issued a cease-and-desist order against Titan Macro Finance, an online entity accused of violating state securities laws.
Authorities said the scheme lured victims through advertisements on Instagram that directed them to a WhatsApp group called “Capital Strategy Forum 1,” where individuals posing as “trading mentors” offered investment advice and promoted high-return opportunities.
“Every dollar lost to fraud is a dollar that can’t go toward rent, groceries, or saving for the future,” said Attorney General Davenport. “By shutting down these schemes and educating the public on how to spot and avoid them, we’re helping families keep more of what they earn and strengthening financial security across our communities.”
Investigators said participants were encouraged to open and fund investment accounts with Titan Macro, which operated as an unregistered broker-dealer. Victims were shown apparent profits and allowed to make small withdrawals to build trust, officials said.
Once larger deposits were made, the company allegedly demanded additional fees, including taxes and management costs, before allowing access to funds. Even after payments were made, victims reportedly lost access to their accounts and communications ceased.
“Social media platforms don’t just show posts from friends anymore, they push content from strangers promoting ways to become rich and successful, which many people find hard to resist,” said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs. “Today, as our Bureau of Securities takes action to shut down a scheme that has cost at least one New Jersey resident a significant sum, we’re reminding people to be extremely wary of investment opportunities being pitched online. Unfortunately, in many cases, the only people making money are the scammers behind them.”
Officials described the operation as a typical example of online investment fraud, where scammers use social media and messaging platforms to build credibility and exploit victims.
“The Titan Macro scheme is a typical example of how these scammers operate,” said Acting Bureau Chief Keith A. Alt. “Victims think they are receiving sound investment advice, but nothing could be further from the truth. We will continue to protect investors by taking action to halt these schemes and raising public awareness of the risks associated with investment ventures promoted on social media.”
The enforcement action was coordinated with California regulators, who issued a similar order after a victim there lost more than $20,000 in a related scheme.
Officials urged residents to exercise caution when approached with investment opportunities online and to verify that firms and individuals are properly registered before investing.
