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{"actor":"system:backfill","investigation_id":"b4afa97e-7f3e-44e0-aac1-6cd98ffce356","kind":"publish","page_slug":"meta-1-coin","published_at":"2026-06-16T12:15:09.667Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Meta-1 Coin","sections":[{"content":"From 2018 through 2023, Robert Dunlap of Houston, Texas, operated a fraudulent digital asset scheme through a vehicle he called the Meta-1 Coin Trust. Dunlap marketed and sold a purported cryptocurrency called Meta-1 Coin, issuing a total of 450 million tokens at a price of $22.22 each, with claims that each coin would appreciate to $50,000 within two years — an implied return of 224,923%. Dunlap worked with co-defendants Nicole Bowdler and former Washington State Republican Senator David A. Schmidt to promote the token through social media platforms, email newsletters, online workshops, Blog Talk Radio, YouTube, and Facebook. Bowdler, who alleged she possessed psychic abilities, reportedly claimed that figures including Metatron and Abraham Lincoln had revealed financial forecasts to her. Schmidt, who had previously served in the Washington State Senate from 2003 to 2006, joined the scheme reportedly for publicity purposes and promoted Meta-1 Coin through his blog 'The Cosmic Connections' and radio show 'The Sedona Connection.' Federal investigators determined that the scheme raised over $20 million from approximately 1,000 investors across at least 40 U.S. states and six foreign countries.","heading":"Fraud Scheme Overview","severity":"critical","sources":[{"credibility":1,"name":"IRS Criminal Investigation: Texas man sentenced to 23 years in prison","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-in-prison"},{"credibility":1,"name":"IRS Criminal Investigation: Federal jury convicts man of orchestrating $14 million cryptocurrency fraud","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"},{"credibility":2,"name":"The Daily Beast: The $9 Million Crypto Scam Backed By a State Senator and a YouTube Psychic","type":"news_article","url":"https://www.thedailybeast.com/the-dollar9-million-crypto-scam-backed-by-a-state-senator-and-a-youtube-psychic/"}]},{"content":"Central to the Meta-1 Coin fraud was Dunlap's claim that each token was backed by hard assets that did not exist. Dunlap told prospective investors that Meta-1 Coin was secured by approximately $44 billion in gold and a fine art collection valued at $1 billion, which allegedly included works by Pablo Picasso, Salvador Dali, and Vincent van Gogh. Dunlap further falsely claimed that a named accounting firm had audited the gold holdings and certified their value. The SEC's 2020 complaint noted that Dunlap had no ownership or claims to the Nevada gold mine he cited. Federal prosecutors later determined that Dunlap 'manufactured bogus legal documents expressly to sustain the illusion, and that he never possessed the gold or the art.' The defendants also told investors the coin was risk-free and would never lose value. Early marketing materials shifted the claimed backing over time: initial claims centered on the $1 billion art collection, which were later supplemented or replaced with gold backing claims that grew to $44 billion. No independent verification of any claimed asset backing was ever produced.","heading":"False Asset Backing Claims","severity":"critical","sources":[{"credibility":1,"name":"SEC Emergency Action Stops Digital Asset Scam (Press Release 2020-66)","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"credibility":2,"name":"The Art Newspaper: Texas man sentenced to 23 years in prison for $20M crypto scam","type":"news_article","url":"https://www.theartnewspaper.com/2026/04/28/texas-man-23-years-prison-20m-crypto-scam"},{"credibility":1,"name":"IRS Criminal Investigation: Federal jury convicts man of orchestrating $14 million cryptocurrency fraud","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"}]},{"content":"Dunlap created a website he called the 'Meta Exchange,' which he presented to investors as a functioning cryptocurrency trading platform for Meta-1 Coin. On this exchange, Dunlap deployed automated software trading bots to artificially inflate both the displayed market price and trading volume of Meta-1 Coin. This manipulation created a false impression of legitimate and active market demand, designed to lend credibility to the token's claimed value and encourage further investment. The Meta Exchange had no connection to any real, regulated financial marketplace. Coins were marketed as never having been distributed to investors, with funds instead diverted to personal use.","heading":"Fake Exchange and Market Manipulation","severity":"critical","sources":[{"credibility":1,"name":"IRS Criminal Investigation: Federal jury convicts man of orchestrating $14 million cryptocurrency fraud","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"},{"credibility":2,"name":"Bitcoin Foundation: Crypto Scam Over Fake Meta-1 Coin","type":"news_article","url":"https://bitcoinfoundation.org/news/crimes-and-fraud-news/meta-1-coin-scam/"}]},{"content":"Federal investigators found no evidence that any investor funds were used for the stated purpose of backing the Meta-1 Coin with gold or art. Instead, Dunlap and his associates diverted proceeds to personal expenses. Documented misuses included the purchase of a Ferrari valued at approximately $215,000 and casino expenditures. The SEC noted a recurring pattern in which Dunlap opened bank accounts, deposited investor funds, spent those funds on undisclosed personal purposes including cashier's checks to related third parties, then closed the accounts and opened new ones to repeat the cycle. Many investors lost their entire life savings.","heading":"Misuse of Investor Funds","severity":"critical","sources":[{"credibility":1,"name":"SEC Emergency Action Stops Digital Asset Scam (Press Release 2020-66)","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"credibility":2,"name":"FinanceFeeds: SEC Obtains $10M Final Judgment Against Meta 1 Coin","type":"news_article","url":"https://financefeeds.com/sec-obtains-10m-final-judgment-against-meta-1-coin/"},{"credibility":1,"name":"IRS Criminal Investigation: Texas man sentenced to 23 years in prison","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-in-prison"}]},{"content":"On March 16, 2020, the U.S. Securities and Exchange Commission filed an emergency civil action in the Western District of Texas (Case No. 1:20-CV-273-RP) against Meta 1 Coin Trust, Robert P. Dunlap, Clear International Trust, Nicole Bowdler, and David A. Schmidt. The SEC obtained an immediate asset freeze and other emergency relief to halt the ongoing securities offering. On April 8, 2020, a federal judge granted a preliminary injunction. On May 14, 2020, the SEC filed an amended complaint alleging the defendants had raised over $9 million from at least 500 investors across 40 U.S. states and six foreign countries. After the defendants failed to appear or defend the action, the court entered default final judgments. Bowdler was ordered to pay disgorgement of $1,540,679.48 plus prejudgment interest of $133,365.03, totaling $1,674,044.51, jointly and severally with Dunlap and the Meta-1 Coin Trust, plus a civil penalty of $1,540,679.48. In aggregate, the SEC ultimately sought and obtained approximately $10 million to $22.6 million in total disgorgement, interest, and penalties across all defendants. The SEC also issued a whistleblower award claim (Award Claim 2021-034) related to the case.","heading":"SEC Civil Enforcement Action","severity":"critical","sources":[{"credibility":1,"name":"SEC Emergency Action Stops Digital Asset Scam (Press Release 2020-66)","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"credibility":1,"name":"SEC v. Meta 1 Coin Trust — Whistleblower Award Claim 2021-034","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/whistleblower-program/notice-covered-actions/award-claim-2021-034"},{"credibility":2,"name":"CoinDesk: SEC Charges Former State Senator Over Digital Asset Scam","type":"news_article","url":"https://www.coindesk.com/policy/2020/03/23/sec-charges-former-state-senator-over-digital-asset-scam"},{"credibility":2,"name":"FX News Group: SEC seeks $22.6M in penalties, disgorgement from Meta 1 Coin","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-seeks-22-6m-in-penalties-disgorgement-from-meta-1-coin/"}]},{"content":"Dunlap was separately prosecuted criminally in the Northern District of Illinois. He was indicted on four counts of mail fraud and arrested in Virginia. After a week-long trial, a federal jury convicted Dunlap on two counts of mail fraud on November 17, 2025. On April 16, 2026, U.S. District Judge LaShonda A. Hunt sentenced Dunlap to 23 years in federal prison and ordered him to pay restitution to victims. Prosecutors stated that Dunlap showed no contrition throughout the case and 'grew only bolder as the fraud continued.' The investigating agencies included the IRS Criminal Investigation division, the FBI, the SEC, and the U.S. Attorney's Office for the Eastern District of Virginia. The FBI also established a victim intake form to identify and assist defrauded investors.","heading":"Criminal Prosecution and Sentencing","severity":"critical","sources":[{"credibility":1,"name":"DOJ Northern District of Illinois: Texas Man Who Orchestrated $20 Million Cryptocurrency Scam Sentenced to 23 Years in Prison","type":"regulatory","url":"https://www.justice.gov/usao-ndil/pr/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-prison"},{"credibility":1,"name":"IRS Criminal Investigation: Texas man sentenced to 23 years in prison","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-in-prison"},{"credibility":1,"name":"DOJ Northern District of Illinois: Federal jury in Chicago convicts man of orchestrating $14 million cryptocurrency fraud","type":"regulatory","url":"https://www.justice.gov/usao-ndil/pr/federal-jury-chicago-convicts-man-orchestrating-14-million-cryptocurrency-fraud"},{"credibility":2,"name":"CBS Chicago: Texas man behind $20 million crypto scam gets 23 years in federal prison","type":"news_article","url":"https://www.cbsnews.com/chicago/news/20-million-crypto-scam-federal-prison-robert-dunlap/"},{"credibility":1,"name":"FBI Victim Intake Form — Meta1 Coin","type":"regulatory","url":"https://forms.fbi.gov/victims/meta1coinvictim"}]},{"content":"Nicole Bowdler, a Florida resident, was a co-defendant in both the SEC civil action and as an alleged co-conspirator in the broader scheme. Bowdler promoted Meta-1 Coin to investors and claimed to investors that she possessed psychic abilities used to forecast the coin's returns. She was subject to a default final judgment in the SEC civil case and ordered to pay disgorgement and civil penalties totaling over $3.2 million. David A. Schmidt, a former Republican state senator from Washington State who served from 2003 to 2006, was also named in the SEC civil complaint. Schmidt had previously been fined $10,000 in 2011 for misappropriating over $32,000 in campaign funds. Schmidt promoted Meta-1 Coin through his blog 'The Cosmic Connections' and radio show 'The Sedona Connection,' actively defending it against public scam allegations. Schmidt was subject to the SEC's emergency injunctive relief. The criminal case filings publicly available do not indicate that Bowdler or Schmidt faced the same criminal charges as Dunlap.","heading":"Co-Defendants: Nicole Bowdler and David Schmidt","severity":"high","sources":[{"credibility":1,"name":"SEC Emergency Action Stops Digital Asset Scam (Press Release 2020-66)","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"credibility":2,"name":"The Daily Beast: The $9 Million Crypto Scam Backed By a State Senator and a YouTube Psychic","type":"news_article","url":"https://www.thedailybeast.com/the-dollar9-million-crypto-scam-backed-by-a-state-senator-and-a-youtube-psychic/"},{"credibility":2,"name":"FX News Group: SEC seeks $22.6M in penalties, disgorgement from Meta 1 Coin","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-seeks-22-6m-in-penalties-disgorgement-from-meta-1-coin/"},{"credibility":3,"name":"Wikipedia: Dave Schmidt (politician)","type":"other","url":"https://en.wikipedia.org/wiki/Dave_Schmidt_(politician)"}]},{"content":"Approximately 1,000 investors across at least 40 U.S. states and six foreign countries lost money in the Meta-1 Coin scheme. Total confirmed investor losses exceeded $20 million. Federal prosecutors stated that many victims lost their entire life savings. The FBI established a dedicated victim intake portal to identify and process claims from defrauded investors. Restitution was ordered as part of Dunlap's criminal sentence, though the specific total restitution amount had not been publicly disclosed in available reports as of the April 2026 sentencing.","heading":"Investor Impact","severity":"critical","sources":[{"credibility":1,"name":"FBI Victim Intake Form — Meta1 Coin","type":"regulatory","url":"https://forms.fbi.gov/victims/meta1coinvictim"},{"credibility":1,"name":"IRS Criminal Investigation: Texas man sentenced to 23 years in prison","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-in-prison"},{"credibility":2,"name":"KuCoin News: Robert Dunlap Sentenced to 23 Years in $20M Meta-1 Coin Fraud Case","type":"news_article","url":"https://www.kucoin.com/news/flash/robert-dunlap-sentenced-to-23-years-in-20m-meta-1-coin-fraud-case"}]},{"content":"After the SEC obtained emergency relief and a preliminary injunction in March–April 2020, the scheme allegedly continued. The SEC issued warnings that the Meta-1 Coin scheme was ongoing despite active court orders. Defendants reportedly failed to appear in court proceedings, leading to default judgments. Prosecutors noted at Dunlap's 2026 sentencing that he displayed no remorse throughout the case and escalated his conduct as the fraud progressed. These documented instances of continuing defiance of regulatory and judicial authority were cited by the court as factors in the sentencing.","heading":"Continued Defiance of Court Orders","severity":"high","sources":[{"credibility":2,"name":"FX News Group: SEC warns Meta 1 Coin scheme is ongoing despite Court orders","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-warns-meta-1-coin-scheme-is-ongoing-despite-court-orders/"},{"credibility":2,"name":"Decrypt: Meta 1 Coin Crypto-Psychic Fraudsters Still Won't Show Up to Court","type":"news_article","url":"https://decrypt.co/49070/meta-1-coin-crypto-sec-default-judgment"},{"credibility":2,"name":"The Art Newspaper: Texas man sentenced to 23 years in prison for $20M crypto scam","type":"news_article","url":"https://www.theartnewspaper.com/2026/04/28/texas-man-23-years-prison-20m-crypto-scam"}]}],"sources_used":[{"credibility":1,"name":"DOJ Northern District of Illinois: Texas Man Who Orchestrated $20 Million Cryptocurrency Scam Sentenced to 23 Years in Prison","type":"regulatory","url":"https://www.justice.gov/usao-ndil/pr/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-prison"},{"credibility":1,"name":"DOJ Northern District of Illinois: Federal Jury in Chicago Convicts Man of Orchestrating $14 Million Cryptocurrency Fraud","type":"regulatory","url":"https://www.justice.gov/usao-ndil/pr/federal-jury-chicago-convicts-man-orchestrating-14-million-cryptocurrency-fraud"},{"credibility":1,"name":"IRS Criminal Investigation: Texas man sentenced to 23 years in prison","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-in-prison"},{"credibility":1,"name":"IRS Criminal Investigation: Federal jury convicts man of orchestrating $14 million cryptocurrency fraud","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"},{"credibility":1,"name":"SEC Press Release 2020-66: SEC Emergency Action Stops Digital Asset Scam","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"credibility":1,"name":"SEC v. Meta 1 Coin Trust — Whistleblower Award Claim 2021-034","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/whistleblower-program/notice-covered-actions/award-claim-2021-034"},{"credibility":1,"name":"FBI Victim Intake Form — Meta1 Coin","type":"regulatory","url":"https://forms.fbi.gov/victims/meta1coinvictim"},{"credibility":2,"name":"The Art Newspaper: Texas man sentenced to 23 years in prison for $20M crypto scam","type":"news_article","url":"https://www.theartnewspaper.com/2026/04/28/texas-man-23-years-prison-20m-crypto-scam"},{"credibility":2,"name":"CBS Chicago: Texas man behind $20 million crypto scam gets 23 years in federal prison","type":"news_article","url":"https://www.cbsnews.com/chicago/news/20-million-crypto-scam-federal-prison-robert-dunlap/"},{"credibility":2,"name":"CoinDesk: SEC Charges Former State Senator Over Digital Asset Scam","type":"news_article","url":"https://www.coindesk.com/policy/2020/03/23/sec-charges-former-state-senator-over-digital-asset-scam"},{"credibility":2,"name":"The Daily Beast: The $9 Million Crypto Scam Backed By a State Senator and a YouTube Psychic","type":"news_article","url":"https://www.thedailybeast.com/the-dollar9-million-crypto-scam-backed-by-a-state-senator-and-a-youtube-psychic/"},{"credibility":2,"name":"Decrypt: Meta 1 Coin Crypto-Psychic Fraudsters Still Won't Show Up to Court","type":"news_article","url":"https://decrypt.co/49070/meta-1-coin-crypto-sec-default-judgment"},{"credibility":2,"name":"KuCoin News: Robert Dunlap Sentenced to 23 Years in $20M Meta-1 Coin Fraud Case","type":"news_article","url":"https://www.kucoin.com/news/flash/robert-dunlap-sentenced-to-23-years-in-20m-meta-1-coin-fraud-case"},{"credibility":2,"name":"Bitcoin Foundation: Crypto Scam Over Fake Meta-1 Coin","type":"news_article","url":"https://bitcoinfoundation.org/news/crimes-and-fraud-news/meta-1-coin-scam/"},{"credibility":2,"name":"CoinMarketCap Academy: Meta-1 Coin Fraudster Sentenced to 23 Years for $20M Scam","type":"news_article","url":"https://coinmarketcap.com/academy/article/meta-1-coin-fraudster-sentenced-to-23-years-for-dollar20m-scam"},{"credibility":2,"name":"FX News Group: SEC seeks $22.6M in penalties, disgorgement from Meta 1 Coin","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-seeks-22-6m-in-penalties-disgorgement-from-meta-1-coin/"},{"credibility":2,"name":"FX News Group: SEC warns Meta 1 Coin scheme is ongoing despite Court orders","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-warns-meta-1-coin-scheme-is-ongoing-despite-court-orders/"},{"credibility":2,"name":"FinanceFeeds: SEC Obtains $10M Final Judgment Against Meta 1 Coin","type":"news_article","url":"https://financefeeds.com/sec-obtains-10m-final-judgment-against-meta-1-coin/"},{"credibility":2,"name":"Hoodline: Houston Man Convicted in $14 Million Cryptocurrency Fraud Case in Chicago","type":"news_article","url":"https://hoodline.com/2025/11/houston-man-convicted-in-14-million-cryptocurrency-fraud-case-in-chicago/"}],"summary":"Meta-1 Coin was a fraudulent digital asset marketed from 2018 to 2023 by Robert Dunlap through the Meta-1 Coin Trust, with false claims that the token was backed by $44 billion in gold and $1 billion in fine art. Dunlap used automated trading bots on a sham exchange called the Meta Exchange to inflate the coin's apparent price and volume, defrauding approximately 1,000 investors of more than $20 million. In April 2026, Dunlap was sentenced to 23 years in federal prison following a November 2025 conviction on mail fraud charges in the Northern District of Illinois.","timeline":[{"date":"2018-04-01","event":"Meta-1 Coin launched. Robert Dunlap begins marketing the token through the Meta-1 Coin Trust, claiming backing by $1 billion in art and later $44 billion in gold.","source":"The Daily Beast","source_url":"https://www.thedailybeast.com/the-dollar9-million-crypto-scam-backed-by-a-state-senator-and-a-youtube-psychic/"},{"date":"2020-03-16","event":"SEC files emergency civil action (Case No. 1:20-CV-273-RP, W.D. Tex.) against Meta 1 Coin Trust, Robert Dunlap, Clear International Trust, Nicole Bowdler, and David A. Schmidt, obtaining an asset freeze.","source":"SEC Press Release 2020-66","source_url":"https://www.sec.gov/newsroom/press-releases/2020-66"},{"date":"2020-04-08","event":"Federal judge grants preliminary injunction halting further Meta-1 Coin sales.","source":"The Daily Beast","source_url":"https://www.thedailybeast.com/the-dollar9-million-crypto-scam-backed-by-a-state-senator-and-a-youtube-psychic/"},{"date":"2020-05-14","event":"SEC files amended complaint alleging defendants raised over $9 million from at least 500 investors across 40 U.S. states and six foreign countries.","source":"FX News Group","source_url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-seeks-22-6m-in-penalties-disgorgement-from-meta-1-coin/"},{"date":"2021-02-03","event":"SEC obtains qualifying default judgment against defendants; Bowdler ordered to pay over $3.2 million in disgorgement and civil penalties jointly and severally with Dunlap and Meta-1 Coin Trust.","source":"SEC Whistleblower Award Claim 2021-034","source_url":"https://www.sec.gov/enforcement-litigation/whistleblower-program/notice-covered-actions/award-claim-2021-034"},{"date":"2023-01-01","event":"Scheme concludes after operating approximately five years. Dunlap is subsequently charged criminally with four counts of mail fraud in the Northern District of Illinois.","source":"IRS Criminal Investigation","source_url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"},{"date":"2025-11-17","event":"Federal jury in the Northern District of Illinois convicts Robert Dunlap on two counts of mail fraud following a week-long trial.","source":"IRS Criminal Investigation","source_url":"https://www.irs.gov/compliance/criminal-investigation/federal-jury-in-chicago-convicts-man-of-orchestrating-14-million-cryptocurrency-fraud"},{"date":"2026-04-16","event":"U.S. District Judge LaShonda A. Hunt sentences Robert Dunlap to 23 years in federal prison and orders restitution to victims. More than 1,000 investors confirmed to have lost over $20 million.","source":"DOJ Northern District of Illinois","source_url":"https://www.justice.gov/usao-ndil/pr/texas-man-who-orchestrated-20-million-cryptocurrency-scam-sentenced-to-23-years-prison"}]},"v":1}