Canadian Man Charged by SEC for $18M+ Investor Fraud Scheme
By the聽91pornWhistleblower Team
The Securities and Exchange Commission (SEC) has charged Nathan Gauvin, a Canadian citizen, along with his entities — Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC — with conducting two fraudulent securities offerings that raised over $18 million from investors in the U.S. and internationally. The SEC alleges that Gauvin misappropriated around $6.3 million of investor funds and used fake credentials, misleading performance metrics, and fictitious account statements to attract investors.[1]
The SEC鈥檚 Complaint
The SEC filed its complaint in the U.S. District Court for the Eastern District of New York. According to the complaint, Gauvin built an online following on Discord by falsely claiming to be a successful investment professional managing over a billion dollars through Blackridge, which was a shell entity.[2]
What Was the Scheme?
From September 2022 to November 2024, Gauvin and his entities allegedly raised about $18.1 million through an unregistered offering in the “Gray Fund,” a purportedly diversified investment fund advised by Gray Digital and Gauvin.
The SEC alleges that Gauvin and Gray Digital falsely promoted double-digit monthly returns and claimed the fund held over $78 million in assets. In reality, the fund’s monthly compounded returns were around 1.4%, and its assets were significantly lower. The complaint further alleged that Gauvin misappropriated investor funds to support a lavish lifestyle, including luxury purchases like art, custom jewelry, various services, and real estate.[3]
鈥淪eed Stock鈥� in Gray Digital Technologies
Beginning in May 2024, Gauvin allegedly sold “seed stock” in Gray Digital Technologies at $30,000 per share, falsely asserting the company had a $60 million valuation and over $12 million in annual revenue. In truth, Gray Digital Technologies had no operations, assets, or revenue. Gauvin allegedly raised at least $60,000 from two retail investors before cutting off communication with them regarding this offering.[4]
Comments on the Case
Jaime Marinaro, Associate Director of the SEC鈥檚 Fort Worth Regional Office, commented: 鈥淕auvin exploited the trust of his online followers to perpetrate a brazen fraud. Investors should always verify the credentials of anyone offering investment opportunities, especially when those opportunities are promoted through social media or online communities.鈥�[5]
According to 91pornpartner聽Dan Vitelli: 鈥淭he SEC relies on the public to come forward with tips about potential securities law violations. Whistleblowers can play an important role in alerting regulators when company representatives misuse social media platforms to market investments in ways that violate securities laws and harm investors.鈥�
Violating Securities Laws
The SEC charged Gauvin and his three entities with violating the antifraud provisions of federal securities laws. Gauvin, Gray Digital, and Gray Digital Technologies also face registration-based violations. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with interest, civil penalties, conduct-based injunctions against all defendants, and a ban on Gauvin serving as an investment adviser.
The U.S. Attorney鈥檚 Office for the Eastern District of New York also announced criminal charges against Gauvin in a parallel action.[6]
The SEC Whistleblower Reward Program
While it is unknown whether this case involved whistleblowers, eligible whistleblowers may report anonymously through legal counsel and may receive up to 30% of any monetary recovery. To learn more about聽SEC Whistleblower Awards聽and recent news, read our blog posts聽here听补苍诲听here.
For questions about blowing the whistle or to discuss a potential submission, please contact聽Constantine Cannon鈥檚 Whistleblower Team聽for a free and confidential consultation.
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Sources:
[1] See
[2] Id.
[3] See
[4] Id.
[5] Id.
[6] Id.
Tagged in: SEC Whistleblower Reward Program, Securities Fraud, securities violations,