WASHINGTON (MarketWatch) – The Securities and Exchange Commission filed fraud charges against Reginald “Reggie” Middleton and two entities he controls, Veritaseum Inc. and Veritaseum LLC, for allegedly engaging in a fraudulent scheme to market and sell digital securities called “Veri.” The SEC accused Middleton of selling the securities to retail investors and manipulating the market for them. A federal court entered an emergency freeze on Monday to preserve at least $8 million of the $14.8 million the defendants raised in 2017 and 2018 in an offering of the digital securities. The defendants allegedly misled investors about their prior business venture, touted oversized but fictitious investor demand for Veri, and claimed to have a product ready to generate revenue when no such product existed. The SEC also alleges Middleton moved a sizable amount of investor assets and transferred some of them to his personal account. The case is ongoing.