Crypto Investment Fraud: Ex-LPL Broker Ordered to Pay $1.4 Million to Defrauded Investors

The rapid rise of cryptocurrency has created an extraordinary opportunity—but also fertile ground for fraud. A recent regulatory action against former LPL Financial broker Lisa Anne Boisselle, president of Wealthwise, highlights how crypto-related investment schemes continue to harm investors and why legal recovery strategies still are critical. Arizona regulators ordered Boisselle and her firm to pay nearly $1.4 million in restitution, plus notable penalties, after clients were steered into fraudulent cryptocurrency investment programs.

The Crypto Fraud Scheme Involving NovaTech and HyperFund

According to Arizona regulators, beginning in 2021, Boisselle began soliciting clients to invest in two crypto asset-related programs, NovaTech and HyperFund (also known as HyperVerse). Between late 2021 and 2023, she raised approximately $1.4 million from at least 16 investors to fund these programs.

Regulators found that many investors were told their money was safe, secure, and accessible for withdrawal at any time, and that their principal would grow over time. As regulatory warnings and lawsuits mounted against these programs, those developments were not disclosed to the investors she had solicited. Authorities later determined that the investments were tied to schemes regulators alleged were fraudulent, and Arizona ordered Boisselle and her firm to cease and desist from violating state securities laws.

In many crypto fraud cases, early assurances of “guaranteed returns” or “secure blockchain programs” mask underlying misconduct until withdrawals fail or accounts vanish.

Broader Crypto Fraud Landscape

Regulators have increasingly linked high-profile crypto investment programs to large-scale fraud. HyperFund has been alleged to operate as a global pyramid scheme that raised more than $1.7 billion, while NovaTech has been accused of running a crypto investment program that collected hundreds of millions of dollars from investors worldwide.

These cases stress a key reality: the technology may be new, but the tactics are familiar—misrepresentations, undisclosed risks, and promises of consistent high returns. For investors, the overlap between traditional securities fraud and crypto-related schemes means the same fundamental protections and duties often apply, even when the products are marketed as “alternative” or “outside the financial system.”

Why Regulatory Orders Don’t Always Make Investors Whole

Even when regulators order restitution, investors often recover only a portion of their losses. In many cases, the individual advisor or promoter lacks the financial ability to repay victims, making recovery through legal claims against brokerage firms or supervisors essential.

Firms have a duty to supervise advisors, monitor outside investments, and investigate red flags such as:

• Private or unapproved crypto offerings conducted away from the firm
• Unusual transfers or large concentrations in high-risk or opaque products
• Customer complaints or withdrawal issues involving delayed or blocked redemptions
• Promises of guaranteed or consistent returns that do not match the risk profile

When these safeguards fail, brokerage firms may face liability for failure to supervise, negligence, or compliance breakdowns.

A Pattern Seen Across Investment Fraud Cases

Crypto fraud often mirrors traditional investment misconduct. Investors are frequently drawn in through personal trust, referral networks, and reassurances that the strategy is “safe,” “proven,” or “institutional-grade.”

Sonn Law Group has represented many victims of advisor misconduct and financial exploitation. “We have represented many investors who are the victims of theft by their financial advisors, and we normally see some sort of forgery of checks, letters of authorization, wire transfers, faked monthly statements, or even payment of the advisors’ credit card bills in these cases,” said Jeff Sonn, a nationally known attorney for investors. These same patterns often appear in the crypto context, layered on top of complex or poorly understood digital asset programs.

What Investors Should Know About Crypto Investment Risks

The growing overlap between traditional securities misconduct and crypto-related fraud means investors must remain vigilant. Warning signs may include:

• Promises of guaranteed or unusually steady crypto returns
• Pressure to invest in private, off-platform, or offshore crypto opportunities
• Difficulty withdrawing funds or repeated excuses for delayed payouts
• Lack of transparency about strategy, risk, or ongoing regulatory actions
• Transfers to unfamiliar entities, wallets, or outside programs

Investors should carefully review account statements, confirm the registration and regulatory history of any advisor, and be cautious of complex products that cannot be clearly explained.

Recovery Options for Crypto Fraud Victims

Investors harmed by crypto-related misconduct may have legal options, including:

• FINRA arbitration against the brokerage firm for supervision failures connected to an advisor’s crypto activities
• Civil litigation for misrepresentation, negligence, breach of fiduciary duty, or aiding and abetting fraud
• Claims tied to undisclosed risks, unauthorized investments, or violations of suitability and compliance rules

In many cases, meaningful recovery is obtained from financial institutions that failed to detect or prevent the misconduct, not just from the individual wrongdoer, who may have limited assets.

How Sonn Law Group Can Help

Sonn Law Group represents investors nationwide in cases involving cryptocurrency fraud, investment advisor misconduct, unsuitable investments, and failures in brokerage supervision. If you or a family member suffered losses connected to NovaTech, HyperFund/HyperVerse, other crypto programs, unauthorized transactions, or advisor misrepresentations, you may have actionable claims.

The firm offers free and confidential consultations to evaluate potential recovery options, applicable legal deadlines, and strategies customized for complex crypto-related losses. Investors are encouraged to act promptly, as time limits may apply to claims arising from fraudulent crypto investments and advisor misconduct.