SEC Seeks Trial of Swedish National Over Alleged Fraud That Took $3.5M in Crypto

The U.S. Securities and Exchange Commission (SEC) is demanding the trial by jury of a Swedish national for his alleged involvement in an international fraud that raked in millions in cryptocurrency.

According to a complaint filed Tuesday in New York's Eastern District Court, the securities watchdog is seeking damages on behalf of "thousands of retail investors" from Roger Nils-Jonas Karlsson, 46.
Karlsson "enticed and defrauded" his victims through his purported company Eastern Metal Securities (EMS) by promising "astronomical returns" on their investments, the SEC alleges.
It further claims neither Karlsson nor EMS were ever registered with the commission, and neither had qualified for an exemption to registration.
Specifically, from around November 2012 through to June 2019, the SEC alleges Karlsson operated a fraudulent scheme called a "Pre Funded Reversed Pension Plan."
During that time Karlsson used multiple fake identities to deceive investors, including some from the deaf community, out of millions of dollars, according to the complaint.
The plan promised a large payout that was tied to the value of gold if victims made an initial investment of $98, but, per the complaint, no such plan existed and no payouts occurred.
In total, Karlsson is alleged to have fleeced 2,200 victims from 49 U.S. states, the District of Colombia, Puerto Rico, and 45 other countries, netting himself $3.5 million via payments in bitcoin and other digital assets.
Misappropriated funds of around $1.5 million were used to purchase real estate in Thailand, his country of residence before being extradited to the U.S. to face charges.
The SEC asked the court for Karlsson to be restrained along with other members of the alleged fraud.
The regulator further seeks that Karlsson's "ill-gotten gains" should be handed over, along with prejudgment interest and additional penalties.

Read the court document in full below:

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Consensus

01

13

41

46

SEC Seeks Trial of Swedish National Over Alleged Fraud That Took $3.5M in Crypto

The man is alleged to have fleeced 2,200 victims in the U.S. and 45 other countries, netting $3.5 million via payments in bitcoin and other digital assets.

10 Years of Decentralizing the Future