Surprisingly, Michael Liberty’s family, extended family, close friends, and legal counsel are complicit. Even worst, the shell companies neither owned, nor were they permitted to transfer interests to Mozido. The SEC complaint also alleges Liberty lied to investors about Mozido’s valuation, finances, and use of proceeds. To further complicate matters, Michael Liberty and his accomplices arranged a series of convoluted transactions to dupe investors. Specifically, Liberty utilized investor capital to heavily dilute (make worthless) stakeholder equity. The investors, unfortunately, were not knowledgeable enough to recognize the scam.
“As alleged, these investments were sold as a chance to get in early with a seemingly promising fintech company.” – Paul Levenson, Director of the SEC’s Boston Regional Office.
In the end, and unfortunately, a legitimate investment opportunity never existed. As seen in other high-level financial scams, it is imperative investors perform research and understand what they are buying. The defendants charges include violating the antifraud and registration provisions of federal securities laws.
