Unlicensed U.S. Advisor Accused of Defrauding Clients With Fabricated Background and “AI Trading” Promises

The U.S. Securities and Exchange Commission has charged a New Jersey man with fraud for allegedly misleading clients through fake professional credentials, false profit guarantees, and deceptive claims about artificial intelligence based trading.

According to the SEC, Joel B. Sofia, 46, of Sewell, New Jersey, acted as an investment advisor for several years without any registration or securities licenses. Regulators allege that he solicited client funds by claiming to be an experienced options trader with decades of professional background at regulated financial institutions. The SEC says these claims were untrue.

Sofia allegedly told clients that his trading strategy relied on proprietary AI software designed to generate consistent profits while eliminating risk. He reportedly assured investors that losses were impossible. The SEC says these representations were materially misleading and created a false sense of security.

Operating under the name “WOLO Wealth Inc.”, which regulators say was not a legally registered company, Sofia allegedly charged advisory fees and obtained direct access to client brokerage accounts to place options trades on their behalf.

Instead of producing gains, the trading activity reportedly resulted in heavy losses. The SEC claims client accounts lost between 61% and 89% of their original value. One investor allegedly lost more than $1 million from an account that began with about $1.2 million. Another reportedly lost roughly $500,000 from an account valued near $1 million. A third lost over 60% of a six figure balance.

When clients questioned the losses, Sofia allegedly blamed investors, promised recovery, or stopped responding.

The SEC is seeking court orders to bar Sofia from the securities industry and impose financial penalties. The case remains ongoing.

BrokersView reminds investors that unregistered advisors, guaranteed returns, and claims of flawless AI trading systems are common warning signs of investment fraud.

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