The SEC resolved securities fraud claims made against Eric Tippetts.
Tippetts’ involvement in Nasgo and ShareNode, a combined $10 million Ponzi scam, is the source of the offenses.
Tippetts’ settlement with the SEC was accomplished by a consented judgment, which was filed on August 5th. On April 28th, 2022, Tippetts signed the judgment instrument.
Tippetts agreed to an injunction that would permanently bar him from violating the Securities Act, according to the proposed ruling. A civil penalty and disgorgement of ill-gotten gains will be considered at a later date.
Tippetts’ Nasgo settlement was granted by the court on August 11th.
In related developments, Tippetts’ accomplice Steve Chiang appears to be escaping service.
According to a July 27th SEC filing;
The SEC was unable to serve the summons and complaint on Chiang at his Singapore residence or through his attorney.
The SEC has tried hard to serve Chiang with process at his Singapore house. He does, however, appear to be avoiding service of process.
Throughout June, the SEC sought to serve Chiang at his apartment seven times using hired attorneys in Singapore.
On June 14, 2022, a lady claiming to be Chiang’s wife admitted (counsel) to Chiang’s Residence.
She stated Chiang was not at home but would return at 6:00 p.m. and requested him to come back at that time.
(Counsel) eventually returned at 6:10 p.m. and 8:00 p.m., but after dialing Chiang’s apartment from the lobby on both occasions, he received no response.
On another occasion, while in the foyer of Chiang’s house, (lawyer) contacted Chiang’s unit.
A female answered the phone, but as soon as (lawyer) said he was there to serve paperwork, the female refused to say anything more and hung up.
Similarly, on June 16, 2022, (lawyer) contacted Chiang’s unit from his Residence’s lobby.
A female answered the phone, but as soon as (lawyer) indicated that he was attempting to serve paperwork, she hung up.
Chiang had hired attorneys in New York to defend him, but they are refusing to take service.
The SEC forwarded copies of the complaint and summons to Chiang’s attorneys.
He is hesitant to undertake official service on Chiang’s behalf at this time, but may reconsider after doing more inquiry into the SEC’s claims.
That’s probably code for “Chiang isn’t paying us.”
Unfortunately, Singapore is not a Hague signatory, so service via the Hague Convention is out, as we’ve seen in other recent civil fraud instances.
Because Chiang was dodging service, the SEC requested an extension to serve him.
On August 4th, the court granted the SEC’s application, giving the SEC until October 3rd.
Steve Chiang’s New York attorney has accepted service on his behalf as of August 31, 2022.
On August 31st, a Waiver of Summons was filed, which means Chiang is now considered served.