The Securities and Exchange Commission (SEC) has filed fraud charges and received an emergency asset freeze regarding a $60 million Ponzi scam. The SEC alleges that brothers Tanner Adam and Jonathan Adam, along with their firms GCZ Global LLC and Triten Financial Group LLC, told investors they had created a crypto trading bot that could generate up to 13.5% monthly returns. The two brothers allegedly stole $60 million from over 80 investors in the US.
The SEC has received an emergency asset freeze pertaining to the plot. The complaint was filed yesterday in the US District Court for the Northern District of Georgia, charging Jonathan Adam, Tanner Adam, GCZ Global, and Triten Financial Group with violating the antifraud provisions of the federal securities laws.
The SEC complaint alleges that Tanner Adam used investor funds to make the down and installment payments to build a $30 million condominium in Miami. His brother, Jonathan Adam, used at least $480,000 of investor funds to purchase cars, trucks, and recreational vehicles.
Justin Jeffries, Associate Director of Enforcement in the SEC’s Atlanta Regional Office, said:
“As we allege, the Adam brothers promised their investors high returns on a crypto investment that did not exist, and then used investor funds to make Ponzi-like payments and to purchase designer goods, recreational vehicles, and million-dollar homes.”
The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants.
