SEC Restarts Lawsuit Over Alleged $4.1 Million Mutual Fund Scam

An alleged fraudster, hiding his identity through an alias and fake entities, swindled $4.1 million from 64 retail investors by promising interest in nonexistent mutual funds, the Securities and Exchange Commission said.

Justinas Butkus used $3.6 million on himself—"for groceries, restaurants, hotels, clothes, cash withdrawals, and crypto asset purchases"—said the SEC’s complaint filed in the US District Court for the Southern District of New York Thursday.

“Butkus’ conduct was egregious: He went to great lengths to defraud unsuspecting investors using sophisticated websites, internet advertisements, and an alias complete with a doctored passport,” said Samuel Waldon, Acting Director of the SEC’s ...