The SEC has filed a lawsuit against the mining company Geosyn Mining and its two co-founders on charges of unregistered and fraudulent securities offering.
According to the regulator, the firm, Caleb Ward (CEO) and Jeremy McNutt (COO) raised approximately $5.6 million from more than 60 investors between November 2021 and December 2022.
The defendants claimed that they would acquire, maintain and operate installations for mining cryptocurrencies, including bitcoin. The extracted digital assets were supposed to be distributed as income from investments.
According to the SEC, the defendants:
* falsely claimed that Geosyn has contracts for the supply of electricity at low tariffs;
* they hid from investors that they never bought mining equipment and did not connect it to the network;
* they did not provide the promised services, such as opportunities to personalize the mining strategy and round-the-clock monitoring of operations.
According to the Commission, Ward and McNutt misappropriated $1.2 million of the collected funds, which they spent on personal needs.
The company paid approximately $354,000 to investors allegedly as a profit distribution, although, apparently, it never received it, the SEC stressed.
In a lawsuit filed in the Northern District of Texas Court, the defendants are charged with violating the anti-fraud and registration provisions of the federal securities laws.
The Commission intends to get Ward and McNutt banned from doing business and disqualified from holding senior positions, paying off their debts and paying civil fines.
• Source: https://www.sec.gov/litigation/litreleases/lr-25983
According to the regulator, the firm, Caleb Ward (CEO) and Jeremy McNutt (COO) raised approximately $5.6 million from more than 60 investors between November 2021 and December 2022.
The defendants claimed that they would acquire, maintain and operate installations for mining cryptocurrencies, including bitcoin. The extracted digital assets were supposed to be distributed as income from investments.
According to the SEC, the defendants:
* falsely claimed that Geosyn has contracts for the supply of electricity at low tariffs;
* they hid from investors that they never bought mining equipment and did not connect it to the network;
* they did not provide the promised services, such as opportunities to personalize the mining strategy and round-the-clock monitoring of operations.
According to the Commission, Ward and McNutt misappropriated $1.2 million of the collected funds, which they spent on personal needs.
The company paid approximately $354,000 to investors allegedly as a profit distribution, although, apparently, it never received it, the SEC stressed.
In a lawsuit filed in the Northern District of Texas Court, the defendants are charged with violating the anti-fraud and registration provisions of the federal securities laws.
The Commission intends to get Ward and McNutt banned from doing business and disqualified from holding senior positions, paying off their debts and paying civil fines.
• Source: https://www.sec.gov/litigation/litreleases/lr-25983
