FOUNDER AND CHIEF EXECUTIVE OFFICER OF INVESTMENT COMPANY CHARGED IN MULTI-MILLION DOLLAR FRAUD SCHEMES

The following information was released by the United States Attorney's Office for the Eastern District of New York:

Defendant Allegedly Misrepresented Gray Digital's Assets and Performance, Provided Investors with Fraudulent Documents and Defrauded Institutional Lenders; Obstructed Related SEC Investigation

Earlier today in federal court in Brooklyn, a 21-count indictment was unsealed charging Nathan Gauvin, also known as "defigray" and "gray," a citizen of Canada with conspiracy to commit securities fraud and wire fraud, securities fraud, wire fraud, investment advisor fraud, bank fraud, money laundering, obstruction of justice and aggravated identity theft. The charges arise from Gauvin's roles in defrauding hundreds of investors in a web-based investment company called Gray Digital Capital Management Inc. (Gray Digital) and in a subsequent scheme to defraud a New York-based financial technology company to obtain credit from two banks insured by the Federal Deposit Insurance Corporation ("FDIC").In total, Gauvin fraudulently raised more than $42 million from Gray Digital investors and obtained more than $800,000 in credit from lenders. Gauvin was arrested today in England on a provisional arrest warrant issued from the Eastern District of New York.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI) announced the indictment.

"As alleged, the defendant's investment company was a house of cards constructed with investor funds and held together with lies. When his house of cards collapsed, Gauvin doubled down by obstructing the regulator's investigation and trying to defraud a lender. Gauvin's run of lies ends today," stated United States Attorney Nocella. "This Office remains deeply committed to protecting the investing public and the integrity of financial markets. We will continue to relentlessly pursue justice for victims of financial fraud."

Mr. Nocella expressed his appreciation to the Department of Justice's Office of International Affairs and theU.S. Securities and Exchange Commission's (SEC)Fort Worth Regional Office for their valuable assistance on the case.

"Nathan Gauvin allegedly lied about his background, qualifications and purported investment returns to raise at least $42 million from interested investors of his fund. Later, after being notified of a federal investigation into his activities," stated FBI Assistant Director in Charge Raia. "Gauvin allegedly engaged in a separate scheme, using falsified records, to induce a company to lend him an addition $1.5 million. The FBI remains dedicated to dismantling any smoke and mirrors act targeting unsuspecting victims for financial enrichment."

"Today's indictment reflects IRS Criminal Investigation Special Agents continued resolve to investigate and prosecute those who engage in financial crimes," stated IRS-CI New York Special Agent in Charge Chavis. "IRS-CI Special Agents are committed to working with our law enforcement partners to aggressively uncover and disrupt criminals who conspire to exploit our financial markets."

As alleged in the indictment, between approximatelyMay 2022 and October 2024, Gauvin and others defrauded investors in Gray Digital and Gray Digital's flagship fund, the Gray Fund.The Gray Fund purported to offer investors and prospective investors an investment strategy "that blends TradFi (traditional finance) and DeFi (decentralized finance)." Gauvin, who, according to the company's website and public statements, was Gray Digital's founder and Chief Executive Officer, lied to investors about his background and experience, as well as Gray Digital's assets and returns, including by providing investors with fraudulent documents intended to verify Gray Digital's assets under management and performance.For example, Gauvin and Gray Digital made false claims that the Gray Fund had a cumulative return since inception of 4,384%, and that Gray Digital's holdings had been verified by an audit firm when, in reality, the asset attestations were based on doctored bank and brokerage statements provided by Gauvin and others to the audit firm and not independently verified. Gauvin raised at least $42 million from investors based on these false claims, including investors in the Eastern District of New York. Rather than invest the funds he raised as represented, Gauvin used most investor deposits to pay investor withdrawals and misappropriated millions of dollars in investor funds, which he spent on luxury goods, jewelry and his personal credit card bills. Gauvin estimated losses from the Gray Digital fraud to be approximately $20 million.

After Gray Digital collapsed in 2024, Gauvin obstructed and attempted to obstruct a SEC investigation into the fraud by providing the SEC with fraudulent documents.

The indictment further alleges that after defrauding Gray Digital's investors and obstructing the SEC's investigation, Gauvin undertook yet another fraudulent scheme.Between approximately May 2025 and June 2025, Gauvin and others provided fraudulent bank statements and other false information to a New York-based financial technology company ("FinTech Company-1") to obtain approximately $800,000 in creditfrom two FDIC-insured banks. Gauvin used the proceeds to pay personal expenses, including to a private members-only social club in London, England.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.

The government's case is being handled by Office's Business and Securities Fraud Section. Assistant United States Attorneys Nick M. Axelrod and Jessica K. Weigel are in charge of the prosecution with assistance from Paralegal Specialist Liam McNett.

The Defendant:

NATHAN GAUVIN

Age: 26

Canada

E.D.N.Y. Docket No. 25-CR-357 (LDH)