Woman Files Lawsuit Against Man Over Alleged Misrepresentation in $100K Crypto Investment

On Friday, March 29, 2024, Kathleen R. Remus filed a civil lawsuit against Aaron D. Fox in the United States District Court for the Western District of Pennsylvania. According to the complaint, Remus and Fox had met online in June 2022 and developed a close personal relationship over the next few months.

In July 2022, Fox approached Remus with an investment opportunity involving cryptocurrency. He told Remus that through a friend who was a licensed financial advisor, he could invest $100,000 of her money in bitcoin which would earn a guaranteed 10% return within 30 days. Despite having no experience with cryptocurrency or investing, Remus agreed to the investment based on Fox’s assurances and representations about the involvement of a financial professional.

However, Remus later learned that no financial advisor was actually managing the investment. By August, Fox told Remus something had gone wrong with the original investment, and he needed $40,000 to hire a lawyer to recover the funds. He later confessed this money was also lost in further cryptocurrency trading. Fox proceeded to borrow another $35,000 from Remus by falsely claiming it was for a recovery team.

The complaint alleges that throughout this period, Fox made numerous misrepresentations about his knowledge of cryptocurrency, the involvement of others, and the risk level of the investment. To formalize the loan amounts, Remus and Fox entered into a written repayment contract. However, Fox failed to repay the amounts owed by the agreed upon deadlines.

As a result of the nonpayment, Remus accrued IRS penalties and interest that Fox also agreed to repay her for in subsequent contracts. However, he allegedly repudiated all contractual obligations in February 2024. With no other choice, Remus had to take out a home equity loan to pay her 2022 tax bill that March.

The lawsuit filed by Remus accuses Fox of federal securities fraud and intentional misrepresentation, arguing he knowingly made false statements to induce her investment. She is seeking damages in excess of the court’s jurisdictional limit. Going forward, the case will proceed through the discovery process as Remus aims to hold Fox accountable for the significant financial and other harms she incurred from the alleged scheme.

Please contact BlockTribune for access to a copy of this filing.