Today the Securities and Exchange Commission (“SEC”) announced fraud charges against Reginald “Reggie” Middleton, a self-described “financial guru,” and two entities he controls, Veritaseum, Inc. and Veritaseum, LLC (collectively Veritaseum) for allegedly engaging in a fraudulent scheme to sell digital securities to investors and to manipulate the market for those securities. A federal court in Brooklyn entered an emergency freeze order on Aug. 12, 2019 to preserve at least $8 million of the $14.8 million raised in 2017 and 2018 in an offering of digital securities.
According to the SEC, the complaint “alleges that the Defendants marketed and sold securities called “VERI” tokens on the internet, inducing retail investors to invest based on multiple material misrepresentations and omissions. Among other things, Defendants allegedly knowingly misled investors about their prior business venture and the use of offering proceeds, touted oversized – but fictitious – investor demand for VERI, and claimed to have a product ready to generate revenue when no such product existed. The complaint further alleges that Middleton manipulated the price of the VERI tokens trading on an unregistered digital asset platform. The complaint also alleges that Middleton recently moved a significant amount of investor assets and then dissipated a portion of those assets, transferring them to Middleton’s personal account.”
The complaint seeks permanent injunctions, disgorgement plus interest and penalties, and a bar from offering digital securities. For Middleton, the SEC also seeks an officer-and-director bar.

 Investopedia reports that  investors lose approximately 9 million each day in crypotocurrency scams. If you believe you have been the subject of digital currency fraud or any other type of investment fraud, we may be able to help. Call us today for a free consultation. Former Wall Street Attorney Melanie S. Cherdack represents investors in the United States and the Caribbean in claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-768-2499 or complete our contact form for a free consultation.