A Houston-based federal court has dismissed Nathan Fuller’s bid to discharge more than $12.5 million in outstanding debts via bankruptcy proceedings.
The court’s judgment hinged on evidence indicating that Fuller managed his investment firm as a deceptive cryptocurrency scheme, as detailed in a
statement issued by the Public Affairs Office of the Department of Justice.
The U.S. Justice Department (DOJ) asserted that Fuller intentionally misled the court by concealing assets, manipulating financial records, and ultimately conceding that his company, Privvy Investments LLC, functioned as an illegal Ponzi structure.
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His bankruptcy request, initiated in October of the prior year following investor lawsuits, failed to withstand scrutiny.
Following an investigation, authorities found Fuller provided inaccurate information in his individual and business filings. Furthermore, he neglected to disclose the complete scope of his financial situation. These actions resulted in further legal repercussions, including being held in contempt of the court.
Fuller later confessed that the company’s operations relied on funds received from new investors to remunerate earlier investors.
Because Fuller did not offer a defense against the complaint filed by the U.S. Trustee, the court entered a default ruling. This determination leaves him personally responsible for the debts and allows his creditors to continue pursuing repayment, even after his bankruptcy filing.
U.S. Trustee Kevin Epstein noted the outcome serves to defend the integrity of the bankruptcy system against abuse. Epstein stated:
Individuals engaged in fraudulent schemes will find no refuge from their actions through bankruptcy protections.
In other news, the DOJ recently moved to seize over $12 million in Tether