Real Life Regulators: Financial Fraud NASAA

Today’s podcast is a special episode that was recorded live during the 2024 NASAA Investor Education Training. We talked with representatives from the Ontario Securities Commission and discussed the downfall of crypto asset trading platform Quadriga. Clients entrusted their assets to Quadriga, which provided false assurances that those assets would be safeguarded. In reality, Quadriga’s CEO Gerry Cotten spent, traded and used those assets at will. Gerry Cotten was able to misuse client assets for years, unchecked and undetected, ultimately bringing down the entire platform.

Today’s episode, “Silver Lined Lies,” was recorded live during the 2023 NASAA Investor Education Conference. We discussed how a small Utah coin shop owner used his storefront to execute the largest Ponzi scheme in Utah history! He did not use an elaborate marketing campaign to advertise his risk-free opportunity but relied on word of mouth to spread his tarnished scheme. The fraud went on for multiple decades as he stole over $200 million from about 500 investors!

Many of us currently use virtual communication platforms on a regular basis to communicate with colleagues, customers, friends, and family members. In today’s episode, “Failure to Launch,” our guests will discuss an investigation involving an individual who, starting as early as 2006, raised over $25 million dollars from investors to establish a virtual communication platform that never came to fruition. The platform failed to launch NOT because of a weak internet connection, but because of his fraudulent actions.
Though the discussion is based on an actual investigation, please note that certain names, facts, and information have been modified for education and entertainment purposes. Also, the views expressed by the speakers are their own personal views and do not represent the views of the State Corporation Commission or other personnel.

Today’s podcast is the concluding episode of our Rotten Tomatoes story. If you have not listened to part 1 yet, we encourage you do to so before you listen to this episode. Rotten Tomatoes details how a career conman stole over two million dollars in less than six months from Alabama investors. He fooled people into investing in his tomato business, but the deal was simply not real. We talk to the prosecutor, investigator and an agriculture journalist that covered the case in great detail.

Today’s podcast is part 1 of a 2-part episode called Rotten Tomatoes. Rotten Tomatoes details how a career conman stole over 2 million dollars in less than 6 months from Alabama investors. He fooled people into investing in his tomato business, but the deal was simply not real. We talk to the prosecutor, investigator and an agriculture journalist that covered the case in great detail.

This episode concludes our special three-part series that explores the different “frontiers” of fraud – from the early days of investing and the origins of the Blue captiSky Law, to the “Wild, Wild West” of nontraditional investments within The Metaverse.
Our guest is Joseph Rotunda, NASAA Enforcement Section Committee Vice-Chair and Texas State Securities Board Enforcement Division Director. Joseph discusses the next frontier of investment fraud.