The US Securities and Exchange Commission (SEC) is planning on charging Meta 1 Coin defendants with a default judgment, after their no show for a fraud probe in which they purportedly generated $9 million in funds from a fake and fraudulent initial coin offering (ICO).
The case dates back to March of this year, where three companies led by four operators scammed 500 investors of $9 million. The promoters touted the Meta 1 Coin, though the digital currency never existed. They said that it was backed by gold and fine arts estimated to be worth $3 billion in total. Together, the defendants received cryptocurrencies from investors that they fraudulently mislead to invest in Meta 1 Coin digital currency.
They told investors that the coins they purchased during the pre-initial coin offering round would increase two-fold in value and could generate $50K per coin in just two years. Nicole Bowdler, the alleged business development executive for Meta 1 Coin Trust, also assured investors that she had psychic abilities that would help guide investors. Per the official SEC report:
“Bowdler claims to use her ‘psychic expertise’ to provide investment guidance to listeners who share her beliefs, encouraging them to invest in Meta1.”
However, the United States Securities and Exchange Commission found that this was evidently a fraudulent claim and that Bowdler was never registered and licensed under the Securities Commission to sell and offer securities in the first place.
Per SEC investigations, Meta 1 coin digital currency never existed, and neither did the fine art collection or gold assets the individuals promised investors their respective companies were backing. Per the report:
“Defendants enticed investors with the allure of a cryptocurrency, but the securities offering is nothing but a vehicle to steal investors’ money.”
The five individuals used the funds received by investors to purchase luxury items for themselves. Currently, the SEC has filed a default judgment against the three companies – Meta 1 Coin Trust, Clear International Trust, and Pramana Capital, Inc – as well as four individuals involved in the scam.
The default judgment was filed after the defendants failed to be present for the hearing with the Securities and Exchange Commission, despite previously having been in touch with legal authorities during the process. The amount demanded of them
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