A Florida businessman has been charged with scamming investors through a $6.8 million digital asset trading scheme, the Securities and Exchange Commission announced on Tuesday.
According to the court complaint filed in federal court in Miami, Thomas J. Gity allegedly received funding from at least 18 investors by pretending to be a "high-profitable asset trader who never lost money during a trading day." Gity was accused of providing fake account statements to investors to trick them into thinking he was managing as much as $100 million in assets.
Per the complaint, Gity told investors he would use their funding to trade digital assets, but only transferred $970,000 of the $6.8 million he received into trading accounts. Gity allegedly transferred over $1.8 million of the funds to his son and for personal expenses and gambling.
Gity is facing charges for violating multiple securities laws, including the Securities Exchange Act of 1934. The SEC is seeking a civil penalty and is moving to prevent Gity from taking part in securities offerings.