REGULATION SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin !

[DinarThug]

CNN. Broadcasting While The Full Of Schmidt Guru Dave Prepares To Talk To His Lawyer Thru Plexiglass !

 

 

 

https://www.securities.io/sec-files-charges-against-ex-senator-david-schmidt-meta-1-coin/?fbclid=IwAR26zL3YxZrUBRe-3pETY6HJBAAbYw8Wf7o5BmJUereDEEvpqYbP2nodrmw

REGULATION

SEC Files Charges Against ex-Senator David Schmidt – Meta 1 Coin

Published

 2 days ago 

 on

 March 25, 2020

By

 David Hamilton 

 

 

This week, the Securities and Exchange Commission (SEC) continued its ICO crackdown campaign. This time regulators announced charges against former Republican Washington state senator David Schmidt and two other individuals for their roles in the 2018 Meta 1 Coin scam. The fraudulent ICO left investors out of millions. Now the SEC seeks retribution for those who lost.

The SEC filed its complaint in the Western District of Texas on March 16. Regulators also named two other people, Robert Dunlap and Nicole Bowdler in the scam. All individuals face charges for violating antifraud and securities regulations.

Discussing the charges, David Peavler, the SEC’s regional director at the Fort Worth Regional Office stated that these individuals went out of their way to fraud US investors. The regulator went as far as to state they made “audacious claims about the Meta 1 Coin.” He explained that the team said anything to promote the event that left thousands with losses. Lastly, Peavler took a moment to remind investors that they should always act skeptically towards promoters who claim that their investment can’t lose value, or that investors will receive huge returns for minimal participation.

False Statements

The 2018 Meta 1 Coin ICO appeared to be a great opportunity for investors at first. Unfortunately, the developers behind the Meta 1 project had other plans. The group made numerous false and misleading statements. For example, the group promised investors returns of nearly 225,000 percent. On top of this outlandish claim, developers told investors the project was risk-free and would never lose value.

 

 

David Shmidt – Meta 1 Coin

 

If all of these promises weren’t enough to get you to participate, Meta 1 had other strategies to employ. For example, Meta 1 promoters claimed an art collection valued at $1 billion backed the tokens. Also, the SEC pointed to instances when the group claimed deposits valued at $2 billion backed the tokens. Supposedly, a reputable accounting firm regularly audited these funds. Obviously, none of this was true.

Meta 1 Coins ICO

The Meta ICO raised just over $4.3 million from around 150 investors from across the globe. Unfortunately for Meta 1, many of these investors were from the US. As you would expect, complaints began to roll into the SEC last year after Meta 1 failed to distribute coins to investors.

SEC investigators revealed that Meta 1 spent the funds in question on personal items. Specifically, the proceeds were funneled to a Chicago-based fund, Pramana Capital. Additionally, an individual named Peter Shamoun received some of the ill-gotten funds. Regulators described how the fraudsters spent the funds on their lavish lifestyles. In one instance, in particular, one of the individuals purchased a $215,000 Ferrari.

Now the SEC is seeking civil penalties and permanent injunctions against Schmidt and the other two defendants. As part of the punishment, the SEC wants Meta 1 to cease-and-desist operations. Additionally, the company must refund all ICO investors. This refund includes any funds sent to Pramana Capital and Shamoun.

DYOR

This story is another case of uninformed investors caught in the blockchain hype. Hopefully, the SEC is able to reunite these investors with their lost funds. For now, Shmidt and his companions face an uphill battle against the SEC in the coming months.

[Pitcher]

Thanks for this story Thugs.

[TheSouthernMan]

Wow....I almost invested in this Meta 1 Coin several years back. Glad I didn't....Thanks for the information DinarThug!

 

Thanks!

[DinarThug]

Lol - Now Dave Is Talking All Kinds Of Bull-Schmidt And Denying The Allegations !  

 

     

 

 

 

Feds accuse ex-lawmaker of conducting digital coin scam

The SEC alleges Dave Schmidt and two others bilked $4 million from investors who bought them.

 

By Jerry Cornfield Saturday, March 28, 2020 1:30am LOCAL NEWSMILL CREEK                        

 

OLYMPIA — A former Snohomish County state lawmaker is accused by federal authorities of helping scam millions of dollars from people across the country by convincing them to invest in a non-existent digital currency.

Dave Schmidt, who served 12 years in the Legislature, and a Florida couple, Robert Dunlap and Nicole Bowdler, allegedly bilked $4.4 million from investors who bought the Meta 1 Coin for $22.22 or $44.44, expecting each to be worth $50,000 within two years, according to a complaint filed March 16 by the Securities and Exchange Commission in Texas.

Since April 2018, the trio through deceptive acts and “material misrepresentation” conned 150 investors in 32 states and five foreign countries into believing the digital currency they had bought was backed either by a $1 billion art collection or $2 billion of gold.

“In reality the Coin is backed by nothing,” SEC Attorney Jennifer Reece wrote in the complaint.

 

The defendants never distributed the coins, instead using some of the money for personal expenses and funneling a portion to two others, Pramana Capital Inc. and Peter K. Shamoun, according to the complaint. Shamoun is alleged to have used $215,000 to buy a Ferrari.

Schmidt, a Republican, lived in Mill Creek while serving eight years in the state House, from 1994-2002, followed by four years in the Senate. In 2006, he lost his bid for re-election to Democrat Steve Hobbs. And Schmidt lost again when the two met in a rematch in 2010.

On Friday, Schmidt, who now lives in Boca Raton, Florida, denied wrongdoing.

“Absolutely, I flat-out deny them,” he said of the allegations. “I have never seen such a sloppy investigation from a professional attorney in my life. She has relied on hearsay. We have hard facts, not hearsay.”

And though he’s an active pitch man for the coins, he said, he’s not “received a single dime” from the venture. “I personally do not take money from them,” Schmidt said.

He moved to Arizona in 2012 and to Florida last year. While in Arizona, he launched an online weekly radio program. “The Sedona Connection,” renaming it “Cosmic Connections” upon moving to Florida. He described the program as informational, spiritual and motivational. Schmidt also said he travels around the country doing motivational workshops, often marketing the Meta 1 coin.

Schmidt described Dunlap as a “very accomplished international banker” who obtained the collections of art and gold as backing for the coins. He said they are continuing to take orders for them at $88.88 apiece — but they are not taking any money during the current legal proceedings.

He said Dunlap plans to post a video statement responding to the charges on the Meta 1 website Sunday. And the two men will discuss it on next week’s “Cosmic Connection” program.

This week, Schmidt blasted the federal authority on the “Cosmic Connection” web page.

“The SEC has filed charges against Meta 1 and myself alleging that we have been running a scam operation and stealing the funds from the people who have purchased coins. NOTHING COULD BE FURTHER FROM THE TRUTH!!!” he wrote.

“We did feel that at some time we would face this type of attack as the cabal would not just sit back and allow their (sic) existing system to fall apart…all is well and we are on the right track to freeing humanity from the thousands of years of financial slavery,” he wrote.

The SEC’s complaint charges Dunlap, Bowdler, Schmidt and the Meta 1 Coin Trust with fraud and violating federal securities laws. It claims the coin sales were illegal, unregistered offerings of securities.

Dunlap and Bowdler allegedly began the fraudulent scheme in April 2018 while living in Fredericksburg, Texas. Schmidt joined them in September 2018 and began extensively marketing the coin offering, the complaint states.

In the course of the investigation, the SEC subpoenaed all three of the accused. Each returned their subpoena to the SEC with the word “Fraudulent” marked on every page, according to the complaint. Schmidt refused to testify or produce documents as requested. Dunlap met with the investigator but didn’t answer questions, while Bowdler didn’t answer questions but did turn over some materials.

A U.S. District Court judge on March 16 issued a temporary restraining order to prevent further sales of the purported digital currency. A hearing on the SEC’s request for a preliminary injunction is set for April 13.

Jerry Cornfield: 360-352-8623; jcornfield@herald net.com. Twitter: @dospueblos.

https://www.heraldnet.com/news/feds-accuse-ex-lawmaker-of-conducting-digital-coin-scam/

[DinarThug]

https://cointelegraph.com/news/us-sec-freezes-assets-of-alleged-crypto-scam-backed-by-a-former-state-senator

 

By  Kollen Post

US SEC Freezes Assets of Alleged Crypto Scam Backed by a Former State Senator

 

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2:55

NEWS

 

The United States Securities and Exchange Commission (SEC) has frozen the assets of Meta 1 Coin, an alleged crypto scam backed by a former state senator that promised investors returns of up to 224,923% without ever having any actual tokens. 

Per a March 20 announcement from the SEC, the regulator initially froze Meta 1’s assets on March 16 and is charging the firm’s operators with fraud. Currently, the SEC seems to be pursuing fines and disgorgement rather than jailtime for those involved.

Claims of art and gold assets

Meta 1 claimed its tokens were backed, but the cited backing shifted over time, from some $1 billion of rare art to, more recently, $2 billion in gold. 

Meta 1’s LinkedIn page currently reads ““META 1 is a Private Digital Currency backed by humanity's greatest assets. We provide the liquidity of gold.” The SEC’s complaint says “In reality, the Coin is backed by nothing.”

Former state senator and repeat scammer

One of the major backers of Meta 1 named in the complaint is Dave Schmidt, a former Republican Senator for the state of Washington. 

Shady dealings checker Schmidt’s past. He lost a re-election campaign for his seat in Washington in 2006, after which he faced investigation for misspending over $40,000 in campaign funds. 

At least one commentator spotted Schmidt feigning access to vast stores of gold via his website back in 2016 — two years before the SEC says Meta 1 began operations. 

Sky-high promises

The SEC claims Meta 1 managed to raise over $4.3 million since April 2018 by promising investors “exorbitant” returns. According to the complaint: 

 

“While the particular rate of return constantly varied, it was always exorbitant. For example,

 

Schmidt and Dunlap represented that each Coin (sold for $22.22 or $44.44, depending on when it was purchased) would be worth up to $50,000—up to a 224,923% return—as a ‘very conservative value.’”

The complaint continues to reject Meta 1’s claims of providing a backed coin: 

 

“As Defendants knew, or were severely reckless in not knowing, Meta1 owned no significant assets, including either art or gold, so there was no reasonable basis for Defendants to project any investment returns, let alone such exorbitant returns.”

 

An ongoing scam

The SEC describes Meta 1 as an “ongoing securities fraud.” As of press time Meta 1’s website — which features the central pitch “Empowering Humanity” — was still online. Its Twitter and LinkedIn pages had also been active recently. 

As Cointelegraph reported earlier this month, a whistleblower recently outed a Ukrainian Bitcoin-trading scam that allegedly netted $70 million in 2019 and employed 200 people.

[DinarThug]

SEC Emergency Action Stops “Meta 1 Coin” Scam

 

March 23, 2020

 

 

 

Dave Schmidt, Robert Dunlap, and Nicole Bowdler (Source: YouTube/Facebook)

 

Press release from sec.gov

 

 

The Securities and Exchange Commission today announced that it has obtained an asset freeze and other emergency relief to halt an ongoing securities fraud perpetrated by a former state senator and two others who bilked investors in and outside the U.S.

The SEC’s complaint alleges that Florida residents Robert Dunlap and Nicole Bowdler worked with former Washington state senator David Schmidt to market and sell a purported digital asset called the “Meta 1 Coin” in an unregistered securities offering conducted through the Meta 1 Coin Trust.  The complaint alleges that the defendants made numerous false and misleading statements to potential and actual investors, including claims that the Meta 1 Coin was backed by a $1 billion art collection or $2 billion of gold, and that an accounting firm was auditing the gold assets.  The defendants also allegedly told investors that the Meta 1 Coin was risk-free, would never lose value and could return up to 224,923%.  According to the complaint, the defendants never distributed the Meta 1 Coins and instead used investor funds to pay personal expenses and funnel proceeds to two others, Pramana Capital Inc. and Peter K. Shamoun. The complaint alleges that some of the investor funds were used to buy luxury automobiles, including a $215,000 Ferrari.  In all, the complaint alleges the defendants raised more than $4.3 million from more than 150 investors in and outside the U.S.

 

Bowdler claims to use her “psychic expertise” to provide investment guidance to
listeners who share her beliefs, encouraging them to invest in Meta1. In particular, Bowdler
claims to be an “Earth Angel incarnated to help humanity,” and purports to regularly channel and commune with angels, including the mythical angel, Metatron, who frequently teaches her about the realities of our world.”

 

“As we allege, the defendants made audacious claims about the Meta 1 Coin and would say almost anything to separate investors from their money,” said David Peavler, Regional Director of the SEC’s Fort Worth Regional Office.  “Investors should always look skeptically at promoters who claim that their investment cannot lose value or that investors will receive massive returns.”

The SEC’s complaint, filed in the Western District of Texas (Austin Division) on March 16, 2020, and unsealed today, charges the Meta 1 Coin Trust, Dunlap, Bowdler, and Schmidt with violating antifraud and securities registration provisions of the federal securities laws.  The SEC seeks permanent and conduct-based injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and civil penalties against the defendants.  The complaint also charges Pramana and Shamoun as relief defendants and seeks disgorgement of allegedly ill-gotten gains with prejudgment interest.

The SEC’s investigation was conducted by Christopher Reynolds and Carol Hahn, and supervised by Jim Etri, B. David Fraser, and Eric Werner.  The litigation is being conducted by Jennifer Reece.

 

Edited March 30, 2020 by DinarThug

[GregHi]

You know, when several of the dinar gurus and dealers end up going to prison, this should probably set off alarm bells in my head.. but no, GO RV!! Lol

[DinarThug]

10 hours ago, GregHi said:

You know, when several of the dinar gurus and dealers end up going to prison,  Lol

Maybe That Piece Of Schmidt Dave Can Send Us A ‘Cellphie’ !  

 

     

[umbertino]

 

 

 

 

 

 

 

[DinarThug]

 

Skip to Main Content

 

SEC Emergency Action Stops Digital Asset Scam

 

Litigation Release No. 24775 /March 20, 2020

 

Securities and Exchange Commission v. Meta 1 Coin Trust, et al., No. A-20-CV-273-RP (W.D. Tex., filed March 16, 2020

 

 

The Securities and Exchange Commission today announced that it obtained an asset freeze and other emergency relief to halt an ongoing securities fraud perpetrated by a former state senator and two others who bilked investors in and outside the U.S.

The SEC's complaint alleges that Florida residents Robert Dunlap and Nicole Bowdler worked with former Washington state senator David Schmidt to market and sell a purported digital asset called the "Meta 1 Coin" in an unregistered securities offering, conducted through the Meta 1 Coin Trust. The complaint alleges that the defendants made numerous false and misleading statements to potential and actual investors, including claims that the Meta 1 Coin was backed by a $1 billion art collection or $2 billion of gold, and that an accounting firm was auditing the gold assets. The defendants also allegedly told investors that the Meta 1 Coin was risk-free, would never lose value and could return up to 224,923%. According to the complaint, the defendants never distributed the Meta 1 Coins and instead used investor funds to pay personal expenses and to funnel proceeds to two others, Pramana Capital Inc. and Peter K. Shamoun. The complaint alleges that some of the investor funds were used to buy luxury automobiles, including a $215,000 Ferrari. In all, the complaint alleges the defendants raised more than $4.3 million from more than 150 investors in and outside the U.S.

The SEC's complaint, filed in the Western District of Texas (Austin Division) on March 16, 2020, and unsealed on March 20, 2020, charges the Meta 1 Coin Trust, Dunlap, Bowdler, and Schmidt with violating antifraud and securities registration provisions of the federal securities laws. The SEC seeks permanent and conduct-based injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and civil penalties against the defendants. The complaint also charges Pramana and Shamoun as relief defendants and seeks disgorgement of allegedly ill-gotten gains with prejudgment interest.

The SEC's investigation was conducted by Christopher Reynolds and Carol Hahn, and supervised by Jim Etri, B. David Fraser, and Eric Werner. The litigation is being conducted by Jennifer Reece.

The SEC's Office of Investor Education and Advocacy has issued an Investor Bulletin on initial coin offerings and additional information is available on Investor.gov and SEC.gov.

SEC Complaint

[umbertino]

 

We can only hope Gurus are finally going to refrain from giving us so much schmidt......

[wealthhound]

Bowdler claims to use her “psychic expertise” to provide investment guidance to
listeners who share her beliefs, encouraging them to invest in Meta1. In particular, Bowdler
claims to be an “Earth Angel incarnated to help humanity,” and purports to regularly channel and commune with angels, including the mythical angel, Metatron, who frequently teaches her about the realities of our world.”

 

 

Maybe we can hire her to teach the Iraqis about the realities of their currency!!

Edited March 30 by DinarThug

1

 

[DinarThug]

Lol ! This Is An Article From April When A Warrant Was Issued - And Since Then That Stupid Dip Schmidt Has Been Arrested !  

 

     

 

https://cointelegraph.com/news/judge-orders-arrest-of-former-gop-state-senator-involved-with-crypto-scam

 

 

TURNER WRIGHT 

 

APR 22, 2020 

Judge Orders Arrest of Former GOP State Senator Involved With Crypto Scam 

A federal judge in Texas has issued a bench warrant in response to a contempt motion brought by the SEC against former Republican Washington state Sen. David Schmidt. 

 

 

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A federal judge in Texas issued warrants for the arrest of an ex-Washington state senator and the leaders behind an alleged cryptocurrency scam involving the Meta 1 coin. 

At an April 21 hearing with the U.S. Securities and Exchange Commission, Judge Robert Pitman ordered bench warrants for former Republican Sen. David Schmidt and cohort Robert Dunlap after they failed to appear. This was despite the fact the proceedings were being convened over video conference in light of COVID-19 prevention measures. 

Nicole Bowdler, the third defendant named in the judge’s ruling, was not targeted in a bench warrant but was given one final opportunity to comply by April 24.

SEC motion targeting crypto scammers

The arrest warrants are part of an ongoing case from the SEC regarding the Meta 1 coin, an alleged crypto scam backed by Schmidt that promised investors the coins were backed with “$1 billion in fine art or $2 billion of gold holdings” without having any actual tokens. The SEC froze the cryptocurrency’s assets on March 16 and charged the firm’s operators with fraud.

However, that apparently did not stop Schmidt and Dunlap from continuing to tout Meta 1. According to the SEC’s contempt motion, the three defendants had already raised over $4.3 million from Meta 1 “investors” and were continuing to sell the tokens. 

Arrests over fines

Judge Pitman chose an arrest warrant for Schmidt and Dunlap over a fine, citing that the latter would “neither be especially burdensome nor particularly effective” in light of the assets at their disposal:

“If incarcerated, Dunlap and Schmidt will be unable to continue Meta 1’s operations, create marketing videos, or email their putative investors."

The bench warrant to be carried out by the U.S. Marshals Service will have the crypto scammers delivered into federal custody in the Western District of Texas.

Republican senator and "Earth Angel" scammers

None of the defendants in the SEC case is a stranger to controversy. Schmidt lost a reelection campaign for his seat in Washington in 2006, after which he faced investigation for misspending over $40,000 in campaign funds. He subsequently paid a $10,000 fine.

However, despite his propensity for illicit activities, Schmidt wasn’t the origin of the purported crypto scam. That honor goes to Dunlap, who launched the Meta 1 token with Bowdler in April 2018. 

Bowdler is considered to have played a lesser role in the scheme, which may explain why Judge Pitman did not issue an arrest warrant for her like Schmidt and Dunlap. In one of the SEC’s March filings, the commission said she used some rather unique methods to attract investors in the cryptocurrency:

"Bowdler claims to use her 'psychic expertise' to provide investment guidance to listeners who share her beliefs, encouraging them to invest in Meta1. In particular, Bowdler claims to be an 'Earth Angel incarnated to help humanity,' and purports to regularly channel and commune with angels, including the mythical angel, Metatron, who frequently teaches her about 'the realities of our world.'"

[DinarThug]

Lol - He’s At The ‘Club Fed’ In Miami !  
 

     

 

 

https://www.bop.gov/inmateloc/

 

 

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DAVID SCHMIDT Register Number: 26342-104 Age:  66 Race:  White Sex:  Male Located at: Miami FDC Release Date: UNKNOWN

[King Bean]

On 3/30/2020 at 12:12 AM, DinarThug said:

Bowdler claims to use her “psychic expertise” to provide investment guidance

 

     Perhaps this is where Weegie, RayHen, Tony,

     Goose, Delta and Judy, Judy get their intel. 

 

         

 

[NWGUY]

You will be okay, if you don't start your post "To all the ships at sea".   😄