SEC Sues Texas Man for $12.3 Million Investment Fraud Scheme

The SEC has filed charges against Nathan Fuller from Cypress, Texas, alleging he defrauded approximately 150 investors of $12.3 million through fake AI trading bots between October 2022 and mid-2024.

SEC Sues Texas Man for $12.3 Million Investment Fraud Scheme

Nathan Fuller from Cypress, Texas, faces civil charges from the U.S. Securities and Exchange Commission (SEC) for allegedly operating an investment fraud scheme that cost around 150 investors approximately $12.3 million. The alleged misconduct occurred between October 2022 and mid-2024, according to the regulator's complaint.

Fuller promoted his companies, Privvy Investments and Gateway Digital Investments, by claiming they used advanced artificial intelligence trading bots to generate extraordinary returns. He promised investors profits of 40 to 50 percent within 30 to 45 days. In some instances, marketing materials even suggested returns exceeding 100 percent in just 21 days. Additionally, Fuller falsely stated that investments were protected by the Federal Deposit Insurance Corporation (FDIC).

SEC investigators determined that the advertised AI trading mechanisms never existed. Instead, Fuller allegedly misappropriated the collected funds. Approximately $6.2 million went toward his personal expenses. Another $5.5 million was used to pay earlier investors — a hallmark of a Ponzi scheme. The SEC is seeking disgorgement, civil penalties, and a permanent injunction against Fuller and his companies.

The case reflects a broader pattern of increasingly sophisticated fraud in the cryptocurrency and technology investment space. The FBI has warned of rising fraud in the crypto sector, with perpetrators using modern technologies to deceive victims more effectively. In a related incident, two men pleaded guilty in federal court in Minnesota to holding a family at gunpoint for hours in September 2025 to steal cryptocurrency valued at over $8 million.

Internationally, regulators are tightening oversight. New anti-money laundering rules in the European Union will take effect in July 2027, requiring crypto service providers to conduct full customer identification for transactions exceeding 1,000 euros. Anonymous accounts will be banned, and regulated platforms will no longer be allowed to offer privacy coins.

Source: Börse Express

Source: Google News AT — Crime (de)