The US Trustee Program (USTP), a component of the US Department of Justice, has won a judgment against a Texas man who hid assets and lied in his bankruptcy case to avoid paying his creditors. This includes investors in his $12.5 million cryptocurrency Ponzi scheme.
Nathan Fuller, who ran a sham crypto investment company called Privvy Investments, used investor funds on luxury goods, gambling trips, and an expensive home. The judgment came after the court found out that Nathan had been lying and fabricating documents related to his assets.
“Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy. The USTP remains vigilant for cases filed by dishonest debtors, who threaten the integrity of the bankruptcy system,” said U.S. Trustee Kevin Epstein of Region 7, which includes the Southern District of Texas.
Privvy Founder Nathan Fuller’s Bankruptcy
Last year, in October, Nathan filed for Chapter 7 bankruptcy after a receiver was appointed to take possession of his assets in a lawsuit brought by investors in a Texas state court. After looking into the matter, the USTP’s Houston office filed a complaint against Fuller, claiming that he had hidden a lot of assets, failed to keep records, and made several false oaths about his bankruptcy case and a separate bankruptcy filing for Privvy.
Fuller admitted to running Privvy as a Ponzi scheme and making up fake documents to help the scheme after being found in civil contempt for not following court orders. Fuller also said that he lied under oath and made up bankruptcy papers to make it harder for the chapter 7 trustee in charge of his and Privvy’s bankruptcy cases.
After those admissions, Fuller did not respond to the USTP’s complaint, which led to a default judgment in the USTP’s favor. As per the latest verdict, Nathan is liable for more than $12.5 million in debt, and creditors can keep trying to collect their money.
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