Description
The SEC sues Crowd Machine for allegedly defrauding investors by secretly diverting their funds to foreign gold mining operations. The defendants have been ordered to pay nearly $26M in disgorgement and penalties for orchestrating the scheme.
Legal Significance
Legitimate operating expenses are deductible when calculating disgorgement for Section 5 violation.
Status
Settled
Case No.
4:22-cv-00076
Date Filed
January 6, 2022
Plaintiff
SEC
Defendant
Crowd Machine Inc.Metavine Inc.Craig Derel Sproule
Court
USDC Northern District of California
Plaintiff Counsel
Christopher CarneyKenneth W. DonnellyAdam Brett Gottlieb
Defendant Counsel
DTO Law
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