SEC v. Touzi Capital & Eng Taing

The SEC filed a civil injunctive action on November 20, 2024, in the U.S. District Court for the Southern District of California against Touzi Capital, LLC and its managing member, Eng Taing, alleging they defrauded over 1,200 investors by raising more than $100 million through unregistered securities offerings from 2021 to early 2023. The complaint claims Taing and Touzi Capital misled investors about the use of funds, commingling and misappropriating investor money across crypto asset mining funds (raising ~$95 million) and a debt rehabilitation business (raising ~$23 million), including for Taing’s personal use. They falsely compared investments to stable, high-yield money market accounts, despite their risky and illiquid nature, and continued recruiting investors after the ventures began failing. The SEC charges violations of registration provisions (Sections 5(a), 5(c) of the Securities Act of 1933) and antifraud provisions (Section 17(a) of the Securities Act, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934). The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer and director bar against Taing. On January 9, 2025, investor Vince Faridani’s motion to intervene was denied, as the court found the SEC adequately represents investor interests. The case remains ongoing as of May 20, 2025, with no final resolution reported.