Two weeks ago, the Southern District of New York rejected a defendant’s motion to dismiss claims that our firm filed in 2020 on behalf of a client who invested in a cryptocurrency business that turned out to be part of scheme of fraud and deceit.
Judge Ramos’ 28-page decision—available on Westlaw and Leagle—rejected the pro-se defendant’s motion to dismiss claims filed against him for violation of SEC Rule 10-b5, violation of Securities Act Section 12, fraudulent inducement, and violation of RICO Section 1962(c), among other claims. Judge Ramos also refused to dismiss our client’s veil-piercing allegations, which seek to hold the individual defendant liable for breaches by several business entities under his control.
The decision allows our client to proceed to prosecute its claims, and reflects the civil court remedies available to victims of business fraud, particularly in the crypto space, a notoriously freewheeling industry.