A Florida entrepreneur is accused of defrauding investors for $6.8 million by involving them in a digital asset trading scheme. The lawsuit was filed against him by the U.S. Securities and Exchange Commission (SEC).
According to her, Thomas Giti received money from at least 18 investors. He claimed to be "a high-profit trader who never loses money during a trading day. Giti is accused of providing fake balance sheets to investors. He needed this to convince them that he had $100 million in assets under management.
Giti told investors that he would use the money to trade digital assets. As it turned out, he transferred only $970,000 out of $6.8 million to his trading accounts.
Presumably, he sent over $1.8 million to his son, and also spent the money on personal needs and gambling. In addition, some of the funds were used for settlements with investors based on the financial pyramid model.
Giti is accused of violating numerous articles of the securities laws. The SEC is seeking civil penalties and a ban on participation in further securities offerings.