SEC Brings Enforcement Action Against Alleged $6.9M Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) has brought emergency enforcement action against an Idaho man who allegedly raised $6.9 million for a fraudulent digital asset investment pool.

• According to a document filed March 5, since October 2017 defendant Shawn Cutting represented himself as an experienced financial adviser to raise funds from over 450 investors.
• Having no such experience, in fact, Cutting used the $6.9 million to purchase cars, improve his home and pay for his daughter's wedding.
• He also paid hundreds of thousands of dollars in "Ponzi-like payments" while communicating false updates to investors, often describing gains of over 50% in a single month.
• Since February 2020, Cutting has been ignoring investors' requests to withdraw their funds.
• In December 2020, he also defied an SEC bid to access his record, arguing his right to financial privacy.
• Along with Cutting's wife Janine, a stream of different companies including Crypto Traders Management and Golden Cross Investments are listed as relief defendants by the SEC.

See also: Self-Help Firm That Mostly Took Bitcoin as Payment Mostly Just Helped Itself, SEC Charges