Crypto boss hit with charges over $12 million spent on fast cars and “world’s largest black diamond”
The SEC has charged Richard Heart, owner of three cryptocurrency firms, with fraud after claims he spent $12.1 million on sports cars and a 555-carat black diamond.
Heart, also known as Richard Schueler, is accused of raising more than $1 billion through three unregistered cryptocurrency asset offerings Hex, PulseX and PulseChain.
He is also accused of have defrauded investors of $12.1 million, which he spent on sports cars and the diamond, thought to be the biggest in the world.
The SEC’s complaint, lodged in a Brooklyn federal court, states Heart promoted his Hex token, PulseX asset trading platform, and PulseChain asset network on YouTube and other platforms as routes to “grandiose wealth”.
Eric Werner, Director of the Fort Worth Regional Office, said: “Heart called on investors to buy crypto asset securities in offerings that he failed to register. He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods. “This action seeks to protect the investing public and hold Heart accountable for his actions.”
The SEC alleges Heart used investor funds to purchase McLaren and Ferrari sports cars, four Rolex watches, and “The Enigma”, a 555-carat black diamond that cost £3.16 million (equivalent to $4.28 million at the time) at auction.
Need Career Advice? Get employment skills advice at all levels of your career
Heart, a 43-year-old U.S. citizen, is believed to live in Helsinki, Finland.
Hex, PulseX, and PulseChain are also named as defendants in the lawsuit.
- The SEC’s complaint, filed in U.S. District Court for the Eastern District of New York, alleges Heart, Hex, PulseChain, and PulseX violated the registration provisions of Section 5 of the Securities Act of 1933. It also alleges Heart and PulseChain violated the antifraud provisions of the federal securities laws. The complaint seeks injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, penalties, and other equitable relief.