By Brazil Stock Guide – Brazil’s securities regulator CVM has fined Felipe Toscano, owner of Vix Trade, and investment adviser Alexandre Melo a combined 26 million reais ($4.6 million) for running a fraudulent investment scheme. Toscano was also barred from participating in the securities market for six years. The unanimous decision was handed down by the CVM’s board on Tuesday.
The sanctioning process began in 2022 following six administrative cases opened between 2017 and 2020, triggered by complaints from brokerages tied to Vix Trade and Melo, as well as filings from public authorities and investors.
According to the regulator, Toscano leveraged his professional credentials to lure investors with promises of high returns and security, according to Valor Econômico. Once funds were raised, he allegedly issued false account statements, fabricated results and created fake websites and email addresses to conceal losses and non-existent trades.
Melo was identified as playing a key role in the early stages of the scheme, presenting simulated products and returns to clients. He allegedly provided promotional material promising “expressive gains,” opened client accounts, and maintained relationships with investors after the funds were raised.
The case was reported by CVM board director Marina Copola, who voted for conviction. Her position was supported by board member João Accioly and Luis Felipe Lobianco, the regulator’s strategic risk oversight superintendent, who acted as substitute director in the absence of interim chairman Otto Lobo.
The defendants did not submit a defense. They may still appeal to the National Financial System Appeals Council (CRSFN).
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