Statement Summary
A jury in California found Thomas F. Casey liable for securities fraud after a trial in which he was accused of orchestrating a fraudulent offering that misled investors, particularly retirees, into believing their funds were safe. Casey induced over 200 individuals to invest more than $10 million into Golden Genesis, a company promising high returns through a blood bank venture. However, these claims were false, and the investments were not secured. Instead of generating wealth, Casey misappropriated the funds to pay himself and other investors, leading to approximately $8 million in losses.
Official Statement from the SEC
“We are pleased with the jury verdict holding the defendant liable for orchestrating a fraudulent securities offering, which targeted retirees’ retirement accounts with false promises of safety and security. The defendant induced more than 200 people to invest a total of over $10 million into Golden Genesis, a venture to supposedly create blood banks for selling human plasma from young donors for anti-aging treatments, based on false claims including that the investments would generate guaranteed high returns and be secured by the company’s assets. In reality, the funds were not secured and the defendant used investor funds to compensate himself and to prop up the scheme by paying back other investors, causing approximately $8 million in losses to the victims. As this trial demonstrates, the SEC is committed to protecting retirees’ hard-earned savings and holding the perpetrators of frauds involving retirement funds accountable.”
