Earlier today, federal prosecutors in Brooklyn unsealed a 21-count indictment against Nathan Gauvin, also known as “defigray” and “gray,” a Canadian citizen. Gauvin faces charges including conspiracy to commit securities fraud and wire fraud, securities fraud, wire fraud, investment advisor fraud, bank fraud, money laundering, obstruction of justice, and aggravated identity theft. Authorities allege that Gauvin defrauded hundreds of investors through Gray Digital Capital Management Inc. (Gray Digital), an online investment company he founded and led as Chief Executive Officer. He is also accused of a subsequent scheme to defraud a New York-based financial technology company to secure credit from two banks insured by the Federal Deposit Insurance Corporation.
According to the indictment, Gauvin raised more than $42 million from Gray Digital investors between May 2022 and October 2024. The government alleges that he lied about his background and qualifications as well as the assets and returns of Gray Digital’s flagship fund, the Gray Fund. Promotional materials claimed that the fund combined traditional finance with decentralized finance strategies and boasted a cumulative return since inception of 4,384%. Prosecutors say these figures were false and supported by fraudulent documents submitted by Gauvin to investors and an audit firm.
Rather than investing funds as promised, authorities allege that Gauvin used most investor deposits to pay withdrawals or for personal expenses such as luxury goods, jewelry, and credit card bills. Losses from the alleged scheme are estimated at approximately $20 million.
After Gray Digital collapsed in 2024, prosecutors say Gauvin attempted to obstruct a U.S. Securities and Exchange Commission investigation by submitting fraudulent documents.
The indictment further alleges that between May 2025 and June 2025, after defrauding investors in Gray Digital, Gauvin provided false information—including fraudulent bank statements—to obtain approximately $800,000 in credit from two FDIC-insured banks via a New York-based fintech company. These proceeds were allegedly used for personal expenses including payments at a private social club in London.
Gauvin was arrested today in England on a provisional arrest warrant issued from the Eastern District of New York.
United States Attorney Joseph Nocella Jr., FBI Assistant Director in Charge Christopher G. Raia (New York Field Office), and IRS-CI Special Agent in Charge Harry T. Chavis Jr. (New York) announced the indictment.
“As alleged, the defendant’s investment company was a house of cards constructed with investor funds and held together with lies. When his house of cards collapsed, Gauvin doubled down by obstructing the regulator’s investigation and trying to defraud a lender. Gauvin’s run of lies ends today,” stated United States Attorney Nocella. “This Office remains deeply committed to protecting the investing public and the integrity of financial markets. We will continue to relentlessly pursue justice for victims of financial fraud.”
Nocella also thanked the Department of Justice’s Office of International Affairs and the SEC’s Fort Worth Regional Office for their assistance on this case.
“Nathan Gauvin allegedly lied about his background, qualifications and purported investment returns to raise at least $42 million from interested investors of his fund. Later, after being notified of a federal investigation into his activities,” stated FBI Assistant Director in Charge Raia. “Gauvin allegedly engaged in a separate scheme, using falsified records, to induce a company to lend him an addition $1.5 million. The FBI remains dedicated to dismantling any smoke and mirrors act targeting unsuspecting victims for financial enrichment.”
“Today’s indictment reflects IRS Criminal Investigation Special Agents continued resolve to investigate and prosecute those who engage in financial crimes,” stated IRS-CI New York Special Agent in Charge Chavis. “IRS-CI Special Agents are committed to working with our law enforcement partners to aggressively uncover and disrupt criminals who conspire to exploit our financial markets.”
The prosecution is being handled by the Business and Securities Fraud Section at the U.S. Attorney's Office for the Eastern District of New York.
Authorities encourage anyone who believes they may have been victimized by Nathan Gauvin or Gray Digital Capital Management Inc. to contact the FBI at http://fbi.gov/graydigitalfraud
Gauvin is presumed innocent unless proven guilty.
