SEC Charges Texas Mining Company with Fraud
The U.S. Securities and Exchange Commission (SEC) has charged the Texas-based mining company Geosyn and its founders, Caleb Ward and Jeremy McNutt, for engaging in fraudulent activities.
On this page
The U.S. Securities and Exchange Commission (SEC) has charged the Texas-based mining company Geosyn and its founders, Caleb Ward and Jeremy McNutt, for engaging in fraudulent activities.
According to the SEC, the company duped 60 investors out of approximately $5.6 million by providing false information on its website. Geosyn concealed from new investors that previous investors had not received the promised mining equipment. Additionally, the company misrepresented the terms of its energy supply contracts, claiming costs were 40–50% lower than actual rates.
To mask these discrepancies and the lack of profits, the founders periodically distributed Bitcoin to investors. Despite only generating $320,000 from mining operations, they distributed $354,500 to investors. To cover the shortfall, McNutt was compelled to purchase Bitcoin personally.
The SEC also accuses the founders of misappropriating $1.2 million from the company for personal expenses, including family vacations and high-end purchases.
The regulator is now seeking to impose fines on the company and its founders, prohibit them from conducting future business, and compel them to compensate for the losses incurred.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
