SEC charges against a Florida businessman who scamming investors out of $6.8 million
The Securities and Exchange Commission has announced charges against a Florida businessman who defrauded investors in a digital asset trading scheme.
As alleged in the complaint, 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 provided fake account statements to investors to create the illusion that he managed as much as $100 million in assets and generated extremely high returns, including providing one statement that purported to show returns in excess of 46% in a week.
As alleged, while Gity promised investors that he would use their funds to trade digital assets and that their capital was not at risk, Gity transferred only $970,000 of the $6.8 million he received from investors into trading accounts. Gity allegedly transferred over $1.8 million of investor funds to his son and spent the remaining funds to make Ponzi-like payments to investors and on personal expenses and gambling.
The complaint also names Gity’s son, Thomas Gity, Jr. and Gity Jr.’s company, Treasure Coast Property Enterprises, LLC, as relief defendants. The SEC is seeking a civil penalty and is moving to prevent Gity from taking part in securities offerings.
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