Litigation Releases (Diana Mae Fernandez)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26346 / July 11, 2025

Securities and Exchange Commission v. Diana Mae Fernandez, No. 5:23-cv-00372 (N.D. W. Va. filed Dec. 21, 2023)

Court Enters Consent Final Judgment in Alleged Offering Fraud

On July 10, 2025, the United States District Court for the Northern District of West Virginia entered final judgment against Defendant Diana Mae Fernandez.

The SEC's complaint, filed on December 21, 2023, alleged that, between 2018 and at least 2020, Fernandez orchestrated a scheme in which she raised approximately $364,000 from at least 20 investors through the fraudulent offer and sale of securities by touting the false narrative that she was a successful businesswoman with access to no-risk, short-term investments. The complaint also alleged that, instead of investing investor funds as promised, Fernandez used investor money to pay for her day-to-day living expenses and lavish hotel stays, fund numerous cash withdrawals, and make Ponzi-like payments to earlier investors.

In a parallel criminal action brought by the United States Attorney's Office for the Northern District of West Virginia arising out of the same conduct, Fernandez pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343. On March 27, 2025, Fernandez was sentenced to: (1) incarceration of thirty-three months; (2) supervised release of three years; (3) restitution of $330,144; and (4) forfeiture of $330,144.

Fernandez entered into a settlement with the SEC, in which she consented to the entry of a judgment against her imposing: (1) injunctions preventing further violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933; (2) an injunction preventing her from the offer or sale of a security; and (3) an order of disgorgement in the amount of $296,021, deemed satisfied by her criminal forfeiture amount.

The litigation was handled by Christopher R. Kelly and supervised by Gregory R. Bockin of the SEC's Philadelphia Regional Office. The SEC's investigation that led to this action was conducted by Michael F. McGraw and was supervised by Brendan P. McGlynn, also of the SEC's Philadelphia Regional Office.