The U.S. Securities and Exchange Commission (SEC) has brought emergency enforcement action against an Idaho man who allegedly raised $6.9 million for a fraudulent digital asset investment pool.
- According to a document filed March 5, since October 2017 defendant Shawn Cutting represented himself as an experienced financial adviser to raise funds from over 450 investors.
- Having no such experience, in fact, Cutting used the $6.9 million to purchase cars, improve his home and pay for his daughter's wedding.
- He also paid hundreds of thousands of dollars in "Ponzi-like payments" while communicating false updates to investors, often describing gains of over 50% in a single month.
- Since February 2020, Cutting has been ignoring investors' requests to withdraw their funds.
- In December 2020, he also defied an SEC bid to access his record, arguing his right to financial privacy.
- Along with Cutting's wife Janine, a stream of different companies including Crypto Traders Management and Golden Cross Investments are listed as relief defendants by the SEC.
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