Report

SEC securities fraud actionFederal enforcement actionSEC charges filedPublished: February 27, 2025

HMC Trading LLC: SEC-charged $4.1M scheme selling interests in mutual funds that did not exist

On February 27, 2025 the SEC charged Justinas Butkus and his companies HMC Trading LLC and HMC Management LLC with fraudulently raising approximately $4.1 million from 64 investors by selling interests in mutual funds that did not exist. Source: https://www.sec.gov/newsroom/press-releases/2025-46

Legal notice

This page is an editorial report, not a court judgment. It may include user-reported allegations, regulatory allegations, and editorial analysis. Do not interpret this page as a final legal finding.

Logged reports

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64 investors · ≈$4.1M

Report status

SEC charges filed

Primary audience

Retail investors approached about private fund interests

Documented facts

This report summarizes a public SEC enforcement action. The fraud characterization comes from the SEC complaint, not from anonymous reports. It is provided for consumer awareness and does not substitute for the court process.

Facts on this page include dated publication metadata, report status labels, and publicly sourced references summarized under methodology.

User-reported allegations

The SEC alleges Butkus, through HMC Trading LLC and HMC Management LLC, raised about $4.1 million from 64 investors.

Investors were allegedly sold interests in mutual funds that did not actually exist.

The action charges violations of the anti-fraud provisions of the federal securities laws.

Editorial opinion and risk analysis

Private "fund" interests sold directly without verifiable registration or independent custodianship.

Investment products that cannot be confirmed through official regulatory databases.

Pressure to invest based on personal trust rather than documented, verifiable fund structures.

Methodology

This page is based on the official SEC press release: https://www.sec.gov/newsroom/press-releases/2025-46.

All fraud characterizations are the SEC's and are allegations subject to adjudication.

No anonymous or user-submitted complaints form the basis of this report.

Key review questions

Can the fund be verified in SEC EDGAR filings and through an independent administrator?

Who holds custody of the assets, and is there an independent auditor?

Are the promised returns and fund existence supported by verifiable third-party records?

Preservation protocol

Preserve subscription agreements, wire confirmations, and all communications.

Check any fund against SEC EDGAR before investing further.

Follow the SEC case for information on remedies or distributions.

Report related solicitations to the SEC at sec.gov/tcr.

Review chronology

Issue development and escalation path

Offering period

Investors were solicited to buy interests in mutual funds that the SEC alleges did not exist.

February 27, 2025 · SEC charges

The SEC filed charges against Justinas Butkus and the two HMC entities for the alleged $4.1M fraud.

Frequently asked questions

Is this an official record?

Yes. It summarizes the SEC action at https://www.sec.gov/newsroom/press-releases/2025-46. The allegations are the SEC's and were pending in court.

What was the core allegation?

That investors paid roughly $4.1 million for interests in mutual funds that, according to the SEC, did not exist.