SEC Rejects Dismissal Motion in Richard Heart’s $1 Billion HEX Case
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Richard Heart, whose real name is Richard Schueler, is accused of defrauding investors of more than $1 billion by selling unregistered securities.
The SEC’s lawsuit alleges that Heart misused approximately $8.9 million of investor funds to purchase luxury items, including Ferraris, Gucci products, and a rare black diamond known as the Enigma, which he reportedly acquired for $4.3 million.
Last week, Heart’s legal team filed a motion to dismiss the case, arguing that Heart lives outside the U.S. and did not offer products to American citizens.
#PulseChain News:
Richard Heart case @RichardHeartWin MEMORANDUM OF LAW IN SUPPORT OF DEFENDANT RICHARD HEART's MOTION TO DISMISS pic.twitter.com/gfQeIyXREA
Heart’s lawyers argued that the SEC failed to demonstrate any connection between Heart and the United States. The SEC didn’t provide evidence of US-based entities, employees, or contracts. There was also no evidence of marketing efforts targeting the US or travel by Heart representatives to the US.
In response, the SEC has asked the U.S. District Court for the Eastern District of New York to reject Heart’s motion for a dismissal.
The financial watchdog countered Heart’s claims by asserting that he “directed many of his promotional efforts specifically toward investors in the United States.”
The SEC cited Heart’s virtual appearances at Las Vegas conferences in March and September 2022, where he promoted HEX, PulseChain, and PulseX. Another event was Heart’s in-person interview on a Miami-based podcast in August 2022, where he promoted HEX and
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