The SEC had been investigating J&J since at least December 2020, according to court documents, after a Salt Lake City attorney became alarmed by a friend’s investment paperwork and reported it.

Then those same contracts started hitting the desk of an accountant in Washington state.

“I started panicking because I realized there were five clients already involved in this stuff, probably blowing their money,” said the accountant, who spoke on the condition of anonymity because of the investigation.

He decided to send an email to a New York City-based investment firm that specializes in exposing fraud.