Thomas Gity, Sr., et al. Case No. 2:20-CV-14342-AMC (S.D. Fla.)
Dec. 20, 2022
On September 29, 2020, the Commission filed a complaint (the “Complaint”) against Thomas Gity, Sr. (the “Defendant”), and naming Thomas Gity, Jr. and Treasure Coast Property Enterprises, LLC as relief defendants. The Complaint alleged that, from at least January 2018 through January 2019, the Defendant violated federal securities laws by misrepresenting to investors, among other things, that he managed digital assets worth in excess of $100 million and achieved weekly returns as high as 46.83% with no market risk. The Commission alleged that, in reality, of the $6.8 million that the Defendant received from investors, he deposited less than $970,000 in digital asset trading accounts and did not achieve the profits he claimed to generate. Rather, the Defendant transferred investor funds from the digital asset trading accounts that he controlled to his own personal bank account and accounts of Thomas Gity, Jr., and used the remainder of investor funds for personal use or to pay other investors in a Ponzi-like fashion. See Complaint.
The matter has since been resolved against the Defendant. By Orders entered June 21, 2021 and September 23, 2021, the Court granted final judgment by consent against Gity, in relevant part finding him liable for disgorgement of $4,676,716, prejudgment interest of $241,647.52, and a civil penalty in the amount of $192,768, for a total amount of $5,111,131.52. See the Court Order and Final Judgment. The Court ordered the Defendant to disgorge certain real property located at 1250 SE Coral Reef Street, Port St. Lucie, Florida (the “Coral Reef Property”). The matter is still pending with respect to the relief defendants.
By Order entered July 9, 2021, the Court appointed a Liquidating Agent to sell the Coral Reef Property. On January 19, 2022, the Court issued an Order confirming, authorizing, and approving the Liquidation Agent’s sale and transfer of the Coral Reef Property. See the Court’s Order
By Order entered July 9, 2021, the Court appointed a Liquidating Agent to sell the Coral Reef Property. See the Court’s Order. On January 19, 2022, the Court issued an Order confirming, authorizing, and approving the Liquidation Agent’s sale and transfer of the Coral Reef Property. See the Court’s Order.
By Order entered on April 12, 2022, the Court entered final judgment by consent against Relief Defendants Thomas J. Gity, Jr. and Treasure Coast, finding the Relief Defendants jointly and severally liable to disgorge $1,321,762.01. See the Court’s Order. The Relief Defendants have since paid this obligation in full. See the Court’s Order
By Order entered on May 18, 2022, the Court appointed Miller Kaplan Arase LLP (“Miller Kaplan”) as Tax Administrator for the Distribution Fund and authorized payment of tax obligations and administrative fees and expenses from the Distribution Fund without further Court Order. See the Court’s Order.
By Order entered on May 23, 2022, the Court granted the motion of the Liquidating Agent to, in relevant part, remit the net proceeds of the sale of the disgorged Coral Reef Property to the SEC. The Liquidation Agent has remitted net proceeds of approximately $466,000 to the SEC. See the Court's Order.
On July 19, 2022, the Court entered an Order to Show Cause pursuant to which individuals and entities who invested with Thomas Gity Sr. during the period January 1, 2018 to January 30, 2019, inclusive, or other interested parties, by August 18, 2022, shall show cause, if there is any, why this Court should not enter an Order approving the Proposed Plan for the distribution of the Distribution Fund.
On August 24, 2022, in accordance with the Order to Show Cause, Section III, the Commission filed with the Court a Notice of No Objection and a Proposed Order approving the Distribution Plan. See the Commission’s Notice and Proposed Order.
On August 29, 2022, the Court entered an Order approving the Plan for the distribution of the Distribution Fund. See the Court’s Order and the approved Plan.
On November 2, 2022, the Commission filed a Motion for an Order to Disburse $1,779,352.97 for distribution in accordance with the Plan. See the Commission’s Motion.
On December 14, 2022, the Court entered an Order to disburse $1,779,352.97 for distribution in accordance with the Plan. See the Court’s Order.
On June 15, 2023, the Court entered an Order to disburse an additional $6,630.61 for distribution in accordance with the Plan. See the Court’s Order.
For more information, please contact the Commission:
Office of Distributions