Eric Tippetts has settled securities fraud allegations brought against him by the SEC.

The violations pertain to Tippetts involvement in Nasgo and ShareNode, a combined $10 million Ponzi scheme.

Tippetts settlement with the SEC took place via a consented judgment, filed on August 5th. Tippetts signed the judgment document on April 28th, 2022.

As per the proposed judgment Tippetts consented to an injunction, permanently banning him from further violations of the Securities Act. Disgorgement of ill-gotten gains and a civil penalty are to be decided at a later date.

The court approved Tippetts’ Nasgo settlement on August 11th.

In related news, Tippetts’ partner in crime Steve Chiang is apparently evading service.

As per a July 27th filing by the SEC;

The SEC has been unable to serve Chiang with the summons and Complaint at his residence in Singapore or through his counsel.

The SEC has diligently worked to serve Chiang with process at his residence in Singapore. However, he appears to be evading service of process.

The SEC, through hired counsel in Singapore, attempted to serve Chiang at his residence seven times throughout June.

On June 14, 2022, (counsel) was admitted to Chiang’s Residence by a woman claiming to be Chiang’s wife.

She claimed that Chiang was not home but that he would return at 6:00 p.m. and asked that he return at that time.

(Counsel) later returned at 6:10 p.m. and 8:00 p.m., but on both occasions after calling Chiang’s residence from the lobby, he received no response.

During another occasion, (counsel) called Chiang’s unit while in the lobby of Chiang’s residence.

A female answered the call, but as soon as (counsel) communicated that he was there to serve documents, the female refused to say anything further and hung up the phone.

Similarly, on June 16, 2022, (counsel) called Chiang’s unit from the lobby of his Residence.

A female answered the call, but once (counsel) indicated that he was attempting to serve documents, she immediately hung up the phone.

Chiang had retained attorneys in New York to defend him, however they’re not accepting service.

The SEC provided Chiang’s counsel with copies of the complaint and summons.

He is unwilling to formally accept service on Chiang’s behalf at this time but will reconsider after engaging in further investigation of the SEC’s allegations.

I think that’s code for “Chiang’s not paying us.”

Unfortunately Singapore isn’t a Hague signatory so, as we’ve seen in other recent civil fraud cases, service via the Hague Convention is out.

In light of Chiang evading service, the SEC requested an extension to effect service on him.

The court granted the SEC’s motion on August 4th, giving the SEC until October 3rd.

 

Update 31st August 2022 – Steve Chiang’s New York attorney has accepted service on his behalf.

A Waiver of the Service of Summons was filed on August 31st, meaning Chiang now counts as served.