A federal court in Houston has ruled against Nathan Fuller’s attempt to eliminate over $12.5 million in debt through bankruptcy.
The decision followed findings that Fuller ran his investment company as a fraudulent crypto operation, according to a press release from the Justice Department’s Office of Public Affairs.
The US Department of Justice (DOJ) revealed that Fuller misled the court by hiding assets, altering financial documents, and admitting that his firm, Privvy Investments LLC, operated as a Ponzi scheme.
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His bankruptcy petition, filed in October 2024 after legal action from investors, did not hold up under further investigation.
After authorities reviewed the case, they discovered that Fuller had given false information in his personal and business filings. He also failed to disclose the full extent of his finances, which led to additional legal consequences, including being found in contempt of court.
He later admitted the company’s structure relied on using new investor money to pay earlier participants.
Because Fuller did not respond to the case brought by the US Trustee, the court issued a default judgment. That decision keeps him personally responsible for the debts and allows creditors to continue pursuing repayment, even though he filed for bankruptcy.
US Trustee Kevin Epstein stated that the outcome reflects an effort to protect the bankruptcy process from misuse. Epstein said:
Fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy.
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