The Securities and Exchange Commission filed fraud charges against Austin D. Ellison-Meade, alleging that he fraudulently raised millions of dollars from investors in an investment club he managed called Baycap.io. According to the SEC complaint, Meade falsely claimed that Baycap.io’s trading strategy was based on a proprietary algorithm Meade developed that could accurately predict stocks that were poised for growth.
The SEC’s complaint alleges that from at least 2019 through 2021, Meade raised at least $2.8 million for Baycap.io from approximately 31 individual investors based on representations that he would use the funds to engage in algorithmic securities trading and that the funds would be readily available upon request. The SEC complaint further alleges that Meade never used investor funds to trade securities, but rather misappropriated money from Baycap.io to pay for personal expenses like luxury automobiles and make Ponzi-like payments.
Source: SEC Charges Investment Club Manager for Misappropriating Investor Funds
