The Montana Commissioner of Securities and Insurance (CSI) and the Missoula County Attorney’s Office have charged an Idaho man with conspiracy to defraud investors, including elderly Montanans, through a scheme tied to cryptocurrency investments.
According to charging documents, Shawn Cutting, an Idaho resident, along with two unidentified co-conspirators — one from Idaho and one from Missoula County — engaged in a scheme involving over $1 million from dozens of investors over several years. The scheme was operated through a company called CTM, also known as CryptoTraders Management.
CTM purported to operate an investment “fund” consisting of cryptocurrency assets. Investors were told they were purchasing an undivided, fractional interest in the fund, with returns based on the performance of these digital assets. Authorities allege the operation was in fact a Ponzi scheme, with funds misappropriated rather than invested as represented.
Charging documents list multiple offenses against Cutting, including:
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Operating a pyramid promotional scheme
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Securities fraud
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Operating as a securities dealer and investment adviser without a license
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Conspiracy to commit these offenses
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Six felony counts of Elder Exploitation in the context of securities fraud
Montana Commissioner of Securities and Insurance James Brown underscored the seriousness of the charges. “The CSI will vigorously pursue fraudsters who operate in Montana, particularly in cases involving exploitation of elderly investors,” Brown said. “I would also like to thank the Missoula County Attorney, Matthew Jennings, and his staff for working with the CSI to charge the case in Missoula County.”
Missoula County Attorney Matthew Jennings expressed gratitude for the partnership with the CSI in bringing the charges. “As the Missoula County Attorney, I want to thank Commissioner Brown for his commitment to investigating fraud within our county and across Montana,” Jennings said. “His team’s dedication ensures the integrity of our financial systems and the safety of our community. We stand ready to assist the CSI as they work to hold people accountable for their actions.”
The case against Cutting is ongoing. Authorities say the investigation will continue to determine the full scope of the scheme and to identify and charge additional individuals involved in the conspiracy.
This case marks the latest effort by Montana law enforcement to crack down on financial fraud targeting vulnerable populations, particularly in emerging markets such as cryptocurrency where oversight remains limited.
By: BSH staff