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SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin

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SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin Empty SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin

Post by Ponee on Thu Mar 26, 2020 8:35 pm

SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin David-Shmidt-Meta-1-Coin1



This week, the Securities and Exchange Commission (SEC) continued its ICO crackdown campaign. This time regulators announced charges against former Republican Washington state senator David Schmidt and two other individuals for their roles in the 2018 Meta 1 Coin scam. The fraudulent ICO left investors out of millions. Now the SEC seeks retribution for those who lost.


The SEC filed its complaint in the Western District of Texas on March 16. Regulators also named two other people, Robert Dunlap and Nicole Bowdler in the scam. All individuals face charges for violating antifraud and securities regulations.



Discussing the charges, David Peavler, the SEC’s regional director at the Fort Worth Regional Office stated that these individuals went out of their way to fraud US investors. The regulator went as far as to state they made “audacious claims about the Meta 1 Coin.” He explained that the team said anything to promote the event that left thousands with losses. Lastly, Peavler took a moment to remind investors that they should always act skeptically towards promoters who claim that their investment can’t lose value, or that investors will receive huge returns for minimal participation.



SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin David-Shmidt-Meta-1-Coin


False Statements



The 2018 Meta 1 Coin ICO appeared to be a great opportunity for investors at first. Unfortunately, the developers behind the Meta 1 project had other plans. The group made numerous false and misleading statements. For example, the group promised investors returns of nearly 225,000 percent. On top of this outlandish claim, developers told investors the project was risk-free and would never lose value.



If all of these promises weren’t enough to get you to participate, Meta 1 had other strategies to employ. For example, Meta 1 promoters claimed an art collection valued at $1 billion backed the tokens. Also, the SEC pointed to instances when the group claimed deposits valued at $2 billion backed the tokens. Supposedly, a reputable accounting firm regularly audited these funds. Obviously, none of this was true.


Meta 1 Coins ICO



The Meta ICO raised just over $4.3 million from around 150 investors from across the globe. Unfortunately for Meta 1, many of these investors were from the US. As you would expect, complaints began to roll into the SEC last year after Meta 1 failed to distribute coins to investors.


SEC investigators revealed that Meta 1 spent the funds in question on personal items. Specifically, the proceeds were funneled to a Chicago-based fund, Pramana Capital. Additionally, an individual named Peter Shamoun received some of the ill-gotten funds. Regulators described how the fraudsters spent the funds on their lavish lifestyles. In one instance, in particular, one of the individuals purchased a $215,000 Ferrari.


Now the SEC is seeking civil penalties and permanent injunctions against Schmidt and the other two defendants. As part of the punishment, the SEC wants Meta 1 to cease-and-desist operations. Additionally, the company must refund all ICO investors. This refund includes any funds sent to Pramana Capital and Shamoun.


DYOR



This story is another case of uninformed investors caught in the blockchain hype. Hopefully, the SEC is able to reunite these investors with their lost funds. For now, Shmidt and his companions face an uphill battle against the SEC in the coming months.


By  David Hamilton

https://www.securities.io/sec-files-charges-against-ex-senator-david-schmidt-meta-1-coin/

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