The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Geosyn Mining and its co-founders, Caleb Joseph Ward and Jeremy George McNutt, accusing them of fraudulent activities. The lawsuit, filed on April 24 in a federal court in Fort Worth, Texas, alleges that Geosyn defrauded approximately 64 investors by selling service agreements disguised as securities.
The SEC’s allegations revolve around Geosyn’s purported misrepresentation of its operational capacities and financial dealings, including false assertions about its contracts with electricity providers. Investigations revealed inflated energy costs compared to disclosed figures, raising concerns about misappropriation of investor funds.
The SEC further alleges that around $5.6 million of investor funds were diverted for personal use, including expenses like trips to Disney World and legal fees related to separate drunk driving incidents involving Ward and McNutt. Geosyn’s financial reserves dwindled significantly by the end of 2022.
While McNutt reportedly severed ties with Geosyn in October 2022, allegations suggest Ward’s involvement in reporting McNutt for embezzlement while withholding his own involvement in fund misappropriation.
Despite the seriousness of the accusations, Geosyn, Ward, and McNutt have not responded publicly. The SEC seeks redress, including a permanent injunction, repayment of misappropriated funds, and punitive measures against the defendants.
The lawsuit underscores the SEC’s commitment to combatting fraudulent activities in the cryptocurrency space and serves as a reminder of the legal and regulatory consequences for those engaging in deceptive practices.
