SEC v. Ian O. Mausner, Evolution Lending, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26333, dated June 24, 2025.
The SEC charged Ian O. Mausner and his firm, Evolution Lending, LLC, with defrauding investors in a cryptocurrency fund. They allegedly raised over $400,000 by failing to disclose Mausner's prior disciplinary history and falsely claiming the fund invested in crypto assets when it did not. Investor funds were also commingled with personal accounts.
In Plain English
Imagine you're saving up for a special toy with friends, and you pick someone to manage the money. This manager, Ian, told everyone he was great at this and promised to buy cool toys with the money. But, he didn't tell you he had messed up with money before. Also, he promised to buy specific toys (like digital coins) but never actually bought them. Instead, he mixed your group's money with his own money in his personal piggy bank. The SEC stepped in because this wasn't fair or honest.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Establish the Fund From December 2020 through January 2022, Ian O. Mausner and his firm, Evolution Lending, LLC, created and offered interests in the Cryptocurrency Growth Fund L.P. This fund was intended to invest in crypto assets.
- Misrepresent Experience and History Mausner, who had previously been barred from the securities industry by the SEC, presented himself as having '30 years of experience' without disclosing his disciplinary history to potential investors.
- False Investment Claims Defendants falsely told investors that the Fund would invest in and hold crypto assets on specific crypto asset trading platforms. However, they never actually held any Fund-related assets on these platforms.
- Raise Funds Through these misleading statements and omissions, Mausner and Evolution Lending successfully raised approximately $413,000 from at least 11 investors across multiple states.
- Commingle Investor Funds Instead of segregating investor money, Defendants deposited the funds into Evolution Lending's bank accounts and Mausner's personal bank accounts, mixing them with unrelated assets.
- Breach Fiduciary Duties By commingling funds and failing to make full disclosures, Mausner and Evolution Lending breached their fiduciary duties to the Fund and its investors, violating antifraud provisions of the Advisers Act.
- Conduct Unregistered Offering Defendants offered and sold interests in the Fund without registering the offering with the SEC. They also used general solicitation and failed to verify if investors were accredited, further violating registration provisions.
The Enforcement Action
On June 23, 2025, the SEC filed a complaint in the U.S. District Court for the Southern District of California against Ian O. Mausner and Evolution Lending, LLC, charging them with fraudulent offering. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. Mausner is a recidivist who previously had an SEC cease-and-desist order and industry bar.
Named in this action: Ian O. Mausner, Evolution Lending, LLC.