Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—D. Md.: Defendant impersonates licensed wealth advisor, steals investor’s $1.5M, skips Maryland for South Africa, (Sep 14, 2026)

By Jay Fishman, J.D.

Defendant used investor’s money for his own cryptocurrency trades that plummeted in value.

The SEC filed a Securities Act Section 17(a)/Exchange Act Section 10(b) fraud complaint in Maryland’s District Court against a Maryland resident for impersonating a licensed wealth adviser and then misappropriating $1.5 million from an investor before moving to South Africa. The Commission requests a permanent injunction, disgorgement of ill-gotten gains, and a civil monetary penalty (SEC v. Rundle, No. 1:26-cv-03590-ABA (D. Md. Sept. 10, 2026)).

Impersonation and misappropriation. From November 2021 to January 2024, the SEC’s complaint alleged that the Annapolis, Maryland defendant, using the stolen identity of a licensed securities professional, made material misrepresentations to an investor that induced her to invest $1.5 million in a fake Simple Agreement for Future Equity (SAFE) in connection with the defendant’s company. The defendant guaranteed the investor an annually-compounded four percent return on her principal investment.

Thereafter, the defendant used the funds to buy his own cryptocurrency, which plummeted to near zero value by the time the Commission discovered the fraud and that the defendant had moved to South Africa. Once there, he admitted the fraud to U.S. work colleagues.

This case is No. 1:26-cv-03590-ABA.

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