The Securities and Exchange Commission (SEC) has filed fraud charges against Gabriel Edelman, Creative Advancement LLC, and Edelman Blockchain Advisors LLC, for allegedly defrauding investors out of $4.39 million.
According to the SEC, Edelman and his affiliated entities offered and sold securities using false and misleading information. The SEC’s complaint indicates that Edelman raised the money from four investors, ostensibly to invest in digital assets. The reality was said to be different as the bulk of the money went to pay expenses, including credit card bills and paying members of his family – including private school tuition. Edelman relocated to Spain in 2020 where he continued to use the money to pay hotel bills, restaurants and trips around the country.
Edelman is said to have operated from February 2917 to May 2021.
The impacted investors were said to be all United States residents, and relatively unknowledgeable regarding digital assets.
The SEC’s complaint, filed in federal district court in Manhattan, seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties from the Defendants.