Litigation Releases (Omar Dario Chavez)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26630 / September 4, 2026

Securities and Exchange Commission v. Omar Dario Chavez, No. 2:26-cv-09887 (C.D. Cal. filed Sept. 3, 2026)

SEC Charges California Resident in Alleged Fraudulent Trading Scheme

On September 3, 2026, the SEC filed fraud charges against Omar Dario Chavez, a/k/a Omar Aiden Chavez, for allegedly making fraudulent misrepresentations to clients and misappropriating client money.

According to the SEC's complaint, between October 2022 and March 2025, Chavez fraudulently obtained more than $940,000 from at least 16 clients, including several elderly victims, to trade securities on their behalf. The SEC alleges that Chavez falsely told potential clients that he was averaging monthly returns of 10 to 20 percent from his trading and would guarantee the return of his clients' monies with $1 million to $2 million in personal assets, assets that he did not have. As alleged in the complaint, Chavez reported fake profits to clients monthly, inducing many to entrust him with additional money. In reality, he allegedly lost hundreds of thousands of dollars through his trading. The SEC further alleges that Chavez misappropriated client funds for personal expenses, including rent, credit card bills, and repayments on short-term personal loans, as well as for payments to other clients.

The SEC's complaint, filed in the United States District Court for the Central District of California, charges Chavez with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, Section 17(a) of the Securities Act of 1933, and Sections 206(1) and (2) of the Investment Advisers Act of 1940. The SEC's complaint seeks permanent injunctive relief, disgorgement with prejudgment interest, and a civil penalty.

The SEC's investigation was conducted by Colleen Keating and Dora Zaldivar and supervised by Diana Tani and Brent Wilner of the SEC's Los Angeles Regional Office. The litigation will be led by Donald Searles and supervised by Stephen Kam. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of California and the Federal Bureau of Investigation.