Feds accuse ex-lawmaker of conducting digital coin scam

OLYMPIA — A former Snohomish County state lawmaker is accused by federal authorities of helping scam millions of dollars from people across the country by convincing them to invest in a non-existent digital currency.

Dave Schmidt, who served 12 years in the Legislature, and a Florida couple, Robert Dunlap and Nicole Bowdler, allegedly bilked $4.4 million from investors who bought the Meta 1 Coin for $22.22 or $44.44, expecting each to be worth $50,000 within two years, according to a complaint filed March 16 by the Securities and Exchange Commission in Texas.

Since April 2018, the trio through deceptive acts and “material misrepresentation” conned 150 investors in 32 states and five foreign countries into believing the digital currency they had bought was backed either by a $1 billion art collection or $2 billion of gold.

“In reality the Coin is backed by nothing,” SEC Attorney Jennifer Reece wrote in the complaint.

The defendants never distributed the coins, instead using some of the money for personal expenses and funneling a portion to two others, Pramana Capital Inc. and Peter K. Shamoun, according to the complaint. Shamoun is alleged to have used $215,000 to buy a Ferrari.

Schmidt, a Republican, lived in Mill Creek while serving eight years in the state House, from 1994-2002, followed by four years in the Senate. In 2006, he lost his bid for re-election to Democrat Steve Hobbs. And Schmidt lost again when the two met in a rematch in 2010.

https://www.heraldnet.com/news/feds-accuse-ex-lawmaker-of-conducting-digital-coin-scam/?utm_source=DAILY+HERALD&utm_campaign=6f0d0544ac-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_d81d073bb4-6f0d0544ac-228635337

I live in the district Dave Schmidt used to represent.