'10 to 20 Percent a Month' and a Guarantee He Couldn't Back: SEC Sues California Trader Over $940,000 From Clients

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

He told prospective clients he was averaging 10% to 20% a month from trading, according to the Securities and Exchange Commission, and that he would guarantee their money with $1 million to $2 million in personal assets. The SEC says he had no such assets.

On Sept. 3, 2026, the SEC filed fraud charges against Omar Dario Chavez, also known as Omar Aiden Chavez, in the U.S. District Court for the Central District of California [1]. The case is SEC v. Omar Dario Chavez, No. 2:26-cv-09887.

Important: These are allegations in a civil complaint. Chavez has not been found liable, and the SEC release reports no settlement. We found no public response from Chavez or a lawyer for him.

What the SEC alleges

According to the complaint, between October 2022 and March 2025 Chavez obtained more than $940,000 from at least 16 clients, including several elderly people, to trade securities on their behalf [1]. The SEC alleges that:

1. The pitch. Chavez falsely claimed average monthly returns of 10% to 20% from his trading.
2. The guarantee. He promised to guarantee clients' money with $1 million to $2 million in personal assets that he did not have.
3. The statements. He reported fake monthly profits to clients, which led many of them to hand over more money.
4. The reality. He allegedly lost hundreds of thousands of dollars trading.
5. The spending. He allegedly used client funds for rent, credit card bills, repayments on short-term personal loans, and payments to other clients.

The charges and what the SEC wants

The complaint charges Chavez with violating Section 10(b) of the Exchange Act and Rule 10b-5, Section 17(a) of the Securities Act, and Sections 206(1) and 206(2) of the Investment Advisers Act. The SEC seeks a permanent injunction, disgorgement with prejudgment interest and a civil penalty [1].

The SEC thanked the U.S. Attorney's Office for the Central District of California and the FBI for their help. The release does not mention a criminal case, and we are not aware of one.

Why "monthly returns" claims are dangerous

A 10% monthly return compounds to more than 200% a year, far beyond what professional traders sustain. Pitches built on those numbers often rely on fabricated statements: as long as clients believe their accounts are growing, they rarely ask for money back and often add more. Payments to one client from another client's deposits can keep the appearance going for a while.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags with personal traders

• A trader who wants your money sent to him rather than held in an account in your name at a registered brokerage.
• Monthly return claims in the double digits.
• Personal "guarantees" of your principal.
• Statements produced by the trader himself instead of a custodian.

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
Omar Dario Chavez (a/k/a Omar Aiden Chavez)	U.S. District Court, C.D. Cal. (No. 2:26-cv-09887)	SEC civil complaint filed Sept. 3, 2026; allegations only; no judgment or settlement reported	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26630, "SEC Charges California Resident in Alleged Fraudulent Trading Scheme," Sept. 4, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26630
2. SEC complaint, SEC v. Chavez. https://www.sec.gov/files/litigation/complaints/2026/comp26630.pdf

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, judgment, settlement or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.