SEC Accuses Investment Company Baycap.io's Manager of Fraud

The Securities and Exchange Commission (SEC) has filed fraud charges against Austin D. Ellison-Meade on January 24, alleging that he fraudulently raised millions of dollars from investors in an investment club he managed called Baycap.io.

According to the SEC complaint, Meade falsely claimed that Baycap.io’s trading strategy was based on a proprietary algorithm Meade developed that could accurately predict stocks that were poised for growth.

The SEC’s complaint alleges that from at least 2019 through 2021, Meade raised at least $2.8 million for Baycap.io from approximately 31 individual investors based on representations that he would use the funds to engage in algorithmic securities trading and that the funds would be readily available upon request.

According to the SEC complaint, Meade charged Baycap.io investors a 2% fee upfront based on the amount of capital they invested and a 20% quarterly fee on any profits he generated for them.

The complaint seeks permanent and conduct-based injunctions, disgorgement, and civil penalties against Meade.

In a parallel action filed earlier, the U.S. Attorney’s Office for the Central District of California indicted Meade on seven counts of criminal wire fraud and identity theft.

Source: SEC