The SEC’s claims of securities fraud against Eric Tippetts were resolved.
The infractions concern Tippett’s participation in the $10 million Ponzi schemes Nasgo and ShareNode. A consent judgment that was submitted on August 5th represented the Tippett settlement with the SEC.
On April 28, 2022, Tippetts signed the judgment paperwork. Tippetts agreed to an injunction as per the proposed decision, prohibiting him from breaking the Securities Act ever again.
A civil fine and the return of illegally acquired wealth will be decided later. On August 11th, the court authorized Tippetts’ Nasgo settlement.
In related news, Steve Chiang, Tippett’s accomplice, is reportedly avoiding service.
The SEC reported on July 27th that it had been unable to serve Chiang with the summons and complaint at his home in Singapore or by way of his attorney.
The SEC has made every effort to serve Chiang with the legal documents at his Singapore home. Nonetheless, he appears to be avoiding service of process.
The SEC sought to serve Chiang at his home seven times throughout the month of June through hired attorneys in Singapore. (counsel) was allowed entry into Chiang’s home by a lady posing as Chiang’s wife. She requested Chiang return at 6:00 p.m., claiming that he was not at home but would do so soon.
(Counsel) returned, but at 6:10 and 8:00 p.m., he got no answer when he called Chiang’s home from the lobby. Another time, while in Chiang’s home’s lobby, (the lawyer) made a call to Chiang’s unit.
When the lawyer said that he was there to serve papers, a female answered the phone but declined to speak to him any further and hung up. On June 16, 2022, (a lawyer) dialed Chiang’s unit from his home’s lobby.
A female answered the phone, but as soon as the lawyer said he was trying to serve papers, she instantly hung up. Chiang hired lawyers in New York to represent him, but they are refusing to take his service.
Copies of the lawsuit and summons were given by the SEC to Chiang’s attorney. He is reluctant to formally accept service on Chiang’s behalf at this time but will change his mind after looking into the SEC’s claims further.
I believe that could be code for “Chiang’s not paying us.” As we’ve seen in other recent civil fraud instances, delivery via the Hague Convention is unfortunately not an option for Singapore because it is not a signatory to the convention.
The SEC requested an extension to serve Chiang because he was avoiding service. On August 4th, the court granted the SEC’s application, giving it until October 3rd.