The US Securities and Exchange Commission has filed a default judgment against three companies and four people related to the allegedly fraudulent art and gold-backed cryptocurrency Meta 1 Coin.
The SEC filed its default judgment on November 18 after the defendants failed to present their case despite corresponding with both the court and legal representatives. The defendants are Meta 1 Coin Trust, Clear International Trust and Ironheart Trust, as well as the individuals Robert P. Dunlap, Nicole Bowdler, Wanda Traversie-Warner and Alfred Warner Jr.
They are accused of defrauding at least 500 investors worldwide of $ 9 million in exchange for crypto tokens that Meta 1 coin allegedly fraudulently identified as having $ 1 billion worth of art assets or $ 2 billion worth of gold. Dollar has covered.
According to a lawsuit filed by the SEC in March, there was never an art collection, gold inventory, or even digital currency, and investor money was spent on personal expenses.
“Defendants lured investors with the appeal of a cryptocurrency, but the offering of securities is nothing more than a means of stealing investors’ money.”
Meta 1 reportedly announced to investors that coins purchased as part of their pre-sale coin offering would see a gain in value of $ 22.22, or $ 44.44, to $ 50,000 over two years.
The complaint also found that Bowdler claimed to have psychological abilities when trying to attract potential investors.
The SEC is seeking civil sanctions, disgorgation and permanent injunctions against the four individuals and three companies. Defendants Pramana Capital Inc. and owner Peter K. Shamoun are not included in the motion and remain in the case.
Pramana allegedly received $ 1 million for investing in Meta 1, and Shamoun was also accused of spending $ 215,000 on buying a Ferrari.