The SEC is going after the Compliance Officer of the BitCoin Ponzi scheme and a person who claims to be a lawyer.
After getting permission from the court, which has put a hold on the case for now, the SEC filed a new complaint that added Keith Gooselaw and Jeffrey Gold as defendants.
BitCoiin was part of Kristijan Krstic’s $70 million Ponzi scheme called “Start Options.”
The SEC filed a lawsuit against Krstic, John DeMarr, and Robin Enos in February 2021.
Keith Gooselaw says that he is a private investigator in California.
On the social media pages for The Law Offices of Jeffrey D. Gold, Gold (right) says that he has been an “experienced litigator since 1994.”
At the time this article was written, the website for The Law Offices of Jeffrey D. Gold was down.
According to a filing with the SEC on December 12;
Gooselaw helped Krstic, DeMarr, and Bitcoiin2Gen with their fraud scheme by telling investors he was the “compliance” officer when he wasn’t. He did this to get investors to invest in Start Options and Bitcoiin2Gen.
As Gooselaw either knew or didn’t care, he didn’t do any compliance functions.
Instead, he helped DeMarr and Krstic collect money from Start Options and Bitcoiin2Gen investors and put it into bank accounts he controlled. He also kept track of the money and sent Krstic and DeMarr reports about how much money they had received.
Gold, a California-licensed lawyer, helped Krstic, DeMarr, and Bitcoiin2Gen with their scam by giving DeMarr permission to post opinion letters on his law firm’s letterhead on the internet. This was in response to a state securities regulatory agency’s claim that Bitcoiin2Gen was selling unregistered securities and not telling investors important facts about itself, and to an alert from another state.
Gold lied and said that Bitcoiin2Gen had hired him and his firm. He then told investors that the Bitcoiin2Gen tokens were real and that they were not being offered and sold as securities in violation of the federal securities law.
Gold’s letter didn’t say, though, that he had never heard of Bitcoiin2Gen or had anything to do with it before he put his name and letterhead on it. He also didn’t say that he had done any research or asked questions to find out if the facts he said in his letter were true or if the opinions he expressed had a good basis.
Gold either knew or didn’t care that putting his name and supposed authorship on the letter would give Bitcoiin2Gen, DeMarr, and Krstic’s scam an unfair amount of credibility by making it look, falsely, like an attorney had given a valid legal opinion based on the due diligence required by his job.
Gold and Gooselaw have both been accused of breaking
As the Compliance Officer for bitcoin, Gooselaw stole $157,000 from BitCoiin investors. Gold was paid $12,000 to give the Ponzi scheme his stamp of approval.
In its complaint, the SEC says that Gooselaw (on the right) used to be a police officer.
DeMarr gave Gooselaw the job of forming new companies and getting them registered. He also asked Gooselaw to help him open bank accounts in the names of several companies he controlled so that he could get investor money.
Gooselaw used an email address called “Compliance IES Global” to talk to investors and set up how they would send money to invest in Start Options.
To do this, Gooselaw opened at least four bank accounts in the name of Interstate Executive Services LLC (“IES”), a company he helped create, in October 2017 and again in February 2018. He was able to sign up for this company.
Gooselaw either knew or didn’t care that DeMarr was stealing investor money during the Relevant Period because he was in charge of the Bank Accounts.
Gooselaw also told investors to list their Ponzi investments as “consulting services” to stay out of trouble with the law.
Because Gooselaw used to be a police officer, his actions are just plain funny.
I like that Jeffrey Gold is being held accountable. If a law firm is willing to sign off on a Ponzi scheme through a legal letter, they go from being legal advisors to being part of the scheme.
Still, Gold’s involvement in Bitcoin seems to be a little less than a simple rubber stamp. The SEC says that;
DeMarr asked Gold, a lawyer who had never heard of Bitcoiin2Gen or digital assets if this letter could be published under his name and on his letterhead.
Gold agreed to do this, and Enos sent him a draft letter, which Gold signed without doing any research to make sure the things in the letter were true.
We’ve seen much worse from MLM companies that commit securities fraud recently and often.
No one knows if both Gooselaw and Gold will be charged with crimes at the same time. I don’t think that will happen.
In 2020 and 2021, Kristjan Krstic and John DeMarr were both charged with crimes.
Krstic (on the right) was arrested in Serbia in the middle of 2020, and he was supposed to be sent to the US after that.
Krstic was let go by Serbian authorities under unclear circumstances, and he ran away right away.
Still, on the run, Krstic and his wife are thought to be hiding out in Serbia or the Philippines.
In August 2021, John DeMarr said he was guilty. After several delays, which are thought to be because Krstic is on the run, DeMarr is set to be sentenced on January 31, 2023.
Other than that, the SEC’s case against the BitCoin defendants is put on hold until the criminal cases they are involved in are finished.