Mavie Global & Ultron securities fraud order from QC, CA

A Slovakian fugitive running a sprawling Ponzi scheme from Dubai just got slapped with a cease and desist order from Quebec's financial regulator.

Quebec's Autorite des Marches Financiers issued the emergency order on May 16th against Mavie Global, Ultron, and seven named individuals and entities operating what the regulator describes as a multilayered cryptocurrency investment fraud. At the center sits Michal Prazenica, a Slovakian national who fled to Dubai and now controls the entire operation through shell companies registered in the British Virgin Islands and Dubai.

The scheme runs like this: Mavie Lab Ltd, a BVI shell company, sits behind Mavie Global. Ultron Technologies Incorporated, incorporated in Dubai, operates the technology platform through which victims send their money. Two spinoff operations—FlipMe and LottoDay—expand the fraud's reach.

But Prazenica didn't build this alone. Three Quebec residents—Nick Lemay, Stephane Plante, and Nathalie Mercier—serve as his on-the-ground promoters. All three are serial fraudsters with histories in other failed schemes. Before joining Mavie Global and Ultron, they pushed the Be pyramid scheme, also known as Melius, and the Validus Ponzi scheme, which collapsed in April 2023. Lemay also promoted Safir, another MLM Ponzi that went under in 2023. Be continues operating under different trading names.

The AMF launched an internal investigation into suspected fraud and filed for an emergency hearing with the Administrative Tribunal for Financial Markets on May 15th. Regulators say the respondents operated as unlicensed securities brokers and advisors, placing unregistered investment contracts with the public without holding required registrations or approved prospectuses.

The timing matters. When the AMF filed its emergency motion, the regulator flagged that Lemay, Plante, and Mercier were organizing a major promotional push in Quebec scheduled for June 8 and 9, 2024. The Authority moved to shut it down before it happened.

Victim money flows in through cryptocurrency and gets routed through the foreign-incorporated websites controlled by the respondents. The AMF emphasized in its filing that the public targeted by this operation is particularly vulnerable. The Authority says its investigation continues, but the immediate priority is halting the illicit solicitation activities.

The respondents violated sections 11 and 148 of Quebec's Securities Act and Regulation 31-103, which governs registration requirements and continuing obligations for registered persons. Operating as unregistered securities brokers while placing investment contracts without prospectuses or exemptions represents a brazen violation of provincial securities law.

🤖 Quick Answer

Who is behind the Mavie Global and Ultron securities fraud scheme?

What action did Quebec's financial regulator take against the scheme?
Quebec's Autorité des marchés financiers issued an emergency cease and desist order on May 16th against Mavie Global, Ultron, and seven named individuals and entities involved in the cryptocurrency investment fraud operation.

What is the operational structure of the Mavie Global fraud scheme?
Mavie Lab Ltd, a British Virgin Islands shell company, serves as the foundation for Mavie Global. Ultron Technologies Incorporated, incorporated in Dubai, operates the technology platform through which

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