- A trio of suspected crypto scammers has cost investors $ 9 million, the SEC says.
- The SEC claims that Meta 1 Coin operated an illegal ICO and the project was never supported by any assets.
- The defendants will not appear in court, and the SEC has asked the judge to give a default judgment.
A trio of suspected crypto scammers have paid off with around $ 9 million in illegitimate funds, but cannot bother to appear in court to defend themselves, according to the US Securities and Exchange Commission.
The SEC submitted one in March complaint with the U.S. District Court for the Western District of Texas against three people – David Schmidt, a former Washington senator, along with two Boca Raton residents, Robert Dunlap and Nicole Bowdler – for their role in defrauding $ 9 million investors . Bowdler teaches in an online workshop of sorts called Spirit School, and Dunlap is her friend.
According to the SEC, Schmidt, Dunlap and Bowdler had set up an ICO for a crypto token called Meta 1 Coin under false pretenses: They had claimed at various times that the coin was backed with either $ 1 billion in art or $ 2 billion in gold. The complaint alleges that not only were these claims false, but that investor funds were deposited into an account called the Meta 1 Coin Trust and spent on non-business extravagances (including a Ferrari for $ 215,000).
Now that the defendants have refused to appear in court, the SEC has asked the judge to default judgment and rule the case without them. According to documents checked by DecryptThe SEC is demanding that all stolen funds be returned and that the defendants pay an additional fine that the court determines.
Much of the SEC’s initial complaint has to do with the defendants’ breathless promises to investors and the near-religious tone of their pitches. Promotional material on the mint’s website, it’s still online somehow, show it as a shining Star of David. “META 1” calls out the homepage. “EMPOWERING HUMANITY!”
According to the complaint, Dunlap and Bowdler were trading their coin on an internet talk show titled “Crypto Visions, Evolutionary Journeys” hosted by a clairvoyant who channeled “Spirit Guides” to recommend various cryptocurrencies. The SEC says Bowlder told the audience that Meta 1 Coin “was specially designed out of the angelic realm” and that the Archangel Metatron had revealed to her that the coin would be profitable.
“Bowdler also told the audience that Metatron and Abraham Lincoln revealed to her what would happen in the world’s financial and economic structure over the next 20 years,” the complaint read.
Among the tamer details is that Schmidt and Dunlap apparently promised investors 224,923% of their coin and described it as “very conservative value”. Sounds plausible!
The mint’s Instagram page is still activeThis also implies that Bowdler, Schmidt, or Dunlap had the time to post something even if they didn’t appear in court. ” 333 META 1 COIN / 333 / CREATORS IN THE MEANS OF FREEDOM ABUNDANCE UNITY AND LOVE” reads a label from November 2nd. “JOIN US!” Meta coin 1 Blog was recently updated today.
As a reminder, the trio somehow managed to raise $ 9 million over 500 various investors.
If only Metatron told them to appear in court.