A man has been charged by the SEC for misappropriating millions of dollars invested by people who believed they would become ‘rich’ from cryptocurrencies.
Richard Heart, also known as Richard Schueler, and three entities he controls are accused of selling unregistered securities, namely crypto assets that raised $1 billion from investors who were told claiming it was the first high-yield “blockchain certificate of deposit.”
The SEC says that Heart began promoting Hex tokens as an investment designed to make people “rich” in 2018. Using his companies, Hex, PulseChain, and PulseX, Heart is alleged to have attracted investment from investors, including those who owned other cryptos who were encouraged to “sacrifice” them (rather than “invest”) to receive Hex tokens.
It was claimed that investors could expect returns of up to 38%.
Heart did not register the securities and, it is further alleged, he and PulseX used around $12 million of the funds invested to buy luxury goods, including sports cars, watches, and a 555-carat black diamond known as ‘The Enigma’ – reportedly the largest black diamond in the world.
“Heart called on investors to buy crypto asset securities in offerings that he failed to register. He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods,” said Eric Werner, Director of the Fort Worth Regional Office. “This action seeks to protect the investing public and hold Heart accountable for his actions.”
The SEC’s complaint has been filed in the U.S. District Court for the Eastern District of New York and investors in Hex, PulseChain, or PulseX are urged to submit a tip via the SEC’s website.
"QuantumRisk, by design, recognizes that these so-called “impossible” events actually happen, and it accounts for them in a way that advisors can see and plan for," Dr. Ron Piccinini told InvestmentNews.
Advisors who invest time and energy on vital projects for their practice could still be missing growth opportunities – unless they get serious about client-facing activities.
The policy research institution calculates thousands in tax cuts for Washington, Wyoming, and Massachusetts residents on average, with milder reductions for those dwelling in wealth hotspots.
Yieldstreet real estate funds turned out to be far riskier than some clients believed them to be, according to CNBC.
The race to 100 transactions ended a month early this year, with April standing out as the most active month on record for RIA dealmaking.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
