SEC Charges Blackridge CEO With Multi-Million Dollar Fraud Targeting Retail Investors

The Securities and platform Commission has charged Canadian national Nathan Gauvin and three related entities—Blackridge, LLC, Gray Digital Capital Management USA, LLC, and Gray Digital Technologies, LLC—with orchestrating two fraudulent securities schemes that collectively raised more than $18 million from investors in the U.S. and abroad. According to the SEC’s complaint, Gauvin used fabricated credentials, falsified account statements, and misleading performance metrics to deceive retail investors, many of whom discovered him on Discord, where he falsely portrayed himself as a billion-dollar asset manager.

The first alleged scheme, spanning September 2022 to November 2024, involved an unregistered offering of interests in the so-called Gray Fund. Gauvin and his entities claimed the fund generated double-digit monthly returns and controlled more than $78 million in assets. In reality, the SEC states the fund’s actual compounded monthly return was approximately 1.4%, with assets dramatically lower than represented. Of the $18.1 million raised, Gauvin allegedly misappropriated roughly $6.3 million for personal use, including luxury purchases such as custom jewelry, concierge services, real estate, and art.

A second fraudulent offering, beginning May 2024, targeted retail investors through the sale of “viewd stock” in Gray Technologies at $30,000 per share. Gauvin allegedly misrepresented the company as a $60 million-valued business generating more than $12 million in annual revenue. The SEC asserts the company had no operations or assets and that Gauvin raised at least $60,000 from two investors before cutting off communication entirely. The complaint viewks permanent injunctions, disgorgement with interest, civil penalties, conduct-based restrictions, and an investment-adviser bar against Gauvin.

Takeaway

How Did Gauvin Allegedly Use Social Media and Fabricated Credentials to Build Investor Trust?

According to the SEC, Gauvin cultivated a large following on Discord by projecting an image of professional success, claiming that Blackridge—actually a shell entity—managed more than $1 billion in assets. These claims assisted him gain credibility among retail investors who were drawn to the promise of exceptional returns, curated insights, and access to what appeared to be a sophisticated investment operation.

The SEC warns that Gauvin reinforced his false narrative by producing falsified account statements, exaggerated performance results, and deceptive financial reporting. Investors were misled into believing they were participating in a high-performing, diversified investment fund with professional oversight. Instead, much of their capital was allegedly diverted for Gauvin’s personal benefit, contradicting the story he presented in Discord channels.

Authorities emphasize that investors are particularly vulnerable when investment promotions occur in informal online communities. Associate Director Jaime Marinaro noted that Gauvin “exploited the trust of his online followers” to commit what the SEC describes as a brazen fraud. The case underscores broader concerns about the growing use of channels by unregistered individuals to promote unverified investment products and solicit investor funds.

Takeaway

What Legal Actions Are Being Pursued and What Lessons Can Investors Draw?

The SEC has charged Gauvin and his firms with violating antifraud provisions of , while Gauvin, Gray Digital, and Gray Digital Technologies face additional charges for securities-registration violations. In parallel, the U.S. Attorney’s Office for the has filed criminal charges against him, signaling the seriousness of the alleged misconduct. Together, regulators are viewking injunctions, civil penalties, disgorgement of ill-gotten gains, and restrictions preventing Gauvin from serving as an investment adviser.

The SEC highlights the importance of verifying the credentials and registration status of anyone offering investment opportunities. Regulators encourage investors to consult the SEC’s Investor Bulletin: How to Check Out Your Investment Professional, which provides step-by-step instructions for confirming professional licenses, disciplinary histories, and registration details. With fraud increasingly originating on social media, these tools are essential for assessing legitimacy and avoiding scams.

The case underscores the continued diligence needed in an environment where scammers can easily fabricate credibility and exploit personal networks online. As gauged from this enforcement action, regulators are intensifying their scrutiny of digital investment promotions and urging investors to engage only with registered, verifiable financial professionals. The SEC also acknowledged assistance from the CFTC and U.S. Attorney’s Office, emphasizing the collaborative approach needed to address emerging fraud channels.

Takeaway