The U.S. Securities and Exchange Commission (SEC) charged Ian O. Mausner of San Diego, California, and his firm Evolution Lending, LLC, with conducting an alleged fraudulent securities offering that raised more than $400,000 from at least 11 investors in multiple states.
The SEC complaint, filed in the U.S. District Court for the Southern District of California, charged Mausner with violating the registration and anti-fraud provisions under Sections 5(a), 5(c), and 17(a) of the Securities Act, respectively. The SEC also alleged violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder (anti-fraud provisions), and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder. The SEC additionally charged Mausner with aiding and abetting Evolution Lending’s violations.
The complaint notes that Mausner was previously subject to a SEC cease-and-desist order due to alleged securities law violations.
The SEC’s enforcement action contends that in selling an unregistered offering of limited partnership interests in a pooled investment vehicle, to wit: the Cryptocurrency Growth Fund L.P. (the “Fund”), Mausner and Evolution Lending failed to disclose Mausner’s prior disciplinary history. Per the SEC, the defendants informed investors that Mausner was the principal of Evolution and had “30 years of experience in the financial advisory and money management industry,” but did not disclose that the SEC had previously barred him from the securities industry. Further, according to the SEC’s court filing, defendants told investors that the Fund would invest in crypto assets and hold them at specific crypto asset trading platforms; however, Defendants never held any Fund-related assets on such platforms.
As further alleged in the complaint, Mausner commingled investor funds with unrelated funds in bank accounts he controlled, in violation of Mausner’s and Evolution Lending’s fiduciary duties to the Fund.
The complaint seeks the typical relief sought in such cases, namely: permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties.
Nationally recognized SEC defense attorney David Chase, Esq. of the Law Firm of David R. Chase, represents those under SEC investigation for various alleged securities law offenses, including insider trading, market manipulation, crypto fraud and investment advisor violations. If you have received a SEC subpoena and are seeking strategic advice from an experienced SEC lawyer, contact David at: 800-760-0912 or e-mail him at: david@davidchaselaw.com. Visit the Firm’s website for more information on SEC investigations at: www.securitiesfrauddefense.net.
