SEC Charges Canadian Citizen with $18.1 Million Fraud Scheme Targeting Retail Investors

USA: SEC Charges Canadian Citizen with $18.1 Million Fraud Scheme Targeting Retail Investors

On Dec. 10, 2025, the U.S. Securities and Exchange Commission announced that Canadian national Nathan Gauvin and three entities he controls—Blackridge, LLC; Gray Digital Capital Management USA, LLC; and Gray Digital Technologies, LLC—have been charged with orchestrating two unregistered securities offerings that collectively raised more than $18 million from investors in the United States and abroad. According to the SEC’s complaint filed in the Eastern District of New York, Gauvin allegedly misappropriated approximately $6.3 million of those funds and used fabricated credentials and falsified performance data to attract participants.

Discord‑Based Promotion and Alleged Misrepresentations

The complaint states that Gauvin cultivated a following on the Discord platform by portraying himself as a successful investment professional overseeing over $1 billion in assets through the shell company Blackridge. From September 2022 through November 2024, he and his entities purportedly raised about $18.1 million by offering interests in the “Gray Fund,” which they claimed generated double‑digit monthly returns and held more than $78 million in assets. In reality, the SEC alleges the fund achieved a compounded monthly return of roughly 1.4 percent and possessed assets far below the advertised amount.

Use of Investor Funds

Federal investigators allege that Gauvin diverted a substantial portion of the raised capital to finance a lavish lifestyle, including expenditures on custom jewelry, luxury concierge services, real estate, and artwork. The SEC’s complaint highlights these purchases as evidence of misappropriation.

Second Offering Involving Gray Digital Technologies

In a separate scheme that began in May 2024, Gauvin offered “seed stock” in Gray Digital Technologies at $30,000 per share, asserting a company valuation of $60 million and annual revenue exceeding $12 million. The complaint contends that the company had no operational assets or revenue. At least $60,000 was raised from two retail investors before Gauvin ceased communication regarding the offering.

Regulatory and Legal Actions

The SEC’s complaint charges Gauvin and the three entities with violations of antifraud provisions of federal securities laws and registration requirements. The agency seeks permanent injunctive relief, disgorgement of ill‑gotten gains with prejudgment interest, civil penalties, conduct‑based injunctions, and a bar on Gauvin acting as an investment adviser. In a parallel proceeding, the U.S. Attorney’s Office for the Eastern District of New York announced criminal charges against Gauvin.

Investor Guidance

Jaime Marinaro, Associate Director of the SEC’s Fort Worth Regional Office, emphasized that investors should verify the credentials of anyone offering investment opportunities, especially when promoted through social media or online communities. The SEC’s Investor Bulletin on verifying investment professionals provides detailed instructions for such checks.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.