Description

The Securities and Exchange Commission today announced it obtained an emergency asset freeze to halt a fast-moving Initial Coin Offering (ICO) fraud that raised up to $15 million from thousands of investors since August by falsely promising a 13-fold profit in less than a month.

The SEC filed charges against a recidivist Quebec securities law violator, Dominic Lacroix, and his company, PlexCorps.The Commission's complaint, filed in federal court in Brooklyn, New York, alleges that Lacroix and PlexCorps marketed and sold securities called PlexCoin on the internet to investors in the U.S. and elsewhere, claiming that investments in PlexCoin would yield a 1,354 percentprofit in less than 29 days. The SEC also charged Lacroix's partner, Sabrina Paradis-Royer, in connection with the scheme.

Today's charges are the first filed by the SEC's new Cyber Unit.The unit was created in September to focus the Enforcement Division's cyber-related expertise on misconduct involving distributed ledger technology and initial coin offerings, the spread of false information through electronic and social media, hacking and threats to trading platforms.

"This first Cyber Unit case hits all of the characteristics of a full-fledged cyber scam and is exactly the kind of misconduct the unit will be pursuing,"said Robert Cohen, Chief of the Cyber Unit. "We acted quickly to protect retail investors from this initial coin offering's false promises."

Based on its filing, the SEC obtained an emergency court order to freeze the assets of PlexCorps, Lacroix, and Paradis-Royer.

The SECs complaint charges Lacroix, Paradis-Royer and PlexCorps with violating the anti-fraud provisions, and Lacroix and PlexCorps with violating the registration provision, of the U.S. federal securities laws. The complaint seeks permanent injunctions, disgorgement plus interest and penalties. For Lacroix, the SEC also seeks an officer-and-director bar and a bar from offering digital securities against Lacroix and Paradis-Royer.

The Commission's investigation was conducted by Daphna A. Waxman, David H. Tutor, and Jorge G. Tenreiro of the New York Regional Office and the Cyber Unit, with assistance from the agency's Office of International Affairs.The case is being supervised by Valerie A. Szczepanik and Mr. Cohen.The Commission appreciates the assistance of Quebec's Autorit Des Marchs Financiers.

The SEC's Office of Investor Education and Advocacy issued an Investor Alert in August 2017 warning investors about scams of companies claiming to be engaging in initial coin offerings:https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-alert-public-companies-making-ico-related.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
The Securities and Exchange Commission today announced that the entity formerly known as Yahoo! Inc. has agreed to pay a $35 million penalty to settle charges that it misled investors by failing to disclose one of the worlds largest data breaches in which hackers stole personal data relating to hundreds of millions of user accounts. According to the SECs order, within days of the December 2014 intrusion, Yahoos information security team learned that Russian hackers had stolen what the security …
5 hours ago · From Securities Exchange Commission
Companies like Uber and Spotify dont need IPOs anymore, and that's turning the finance industry on its head.Source: Wired - Emerging technologies News
The Securities and Exchange Commission today announced additional fraud charges stemming from an investigation of Centra Tech Inc.s $32 million initial coin offering. In an amended complaint filed today, the SEC charged one of Centras co-founders, Raymond Trapani, in a fraudulent scheme related to Centras 2017 ICO, in which the company issued CTR Tokens to investors. Earlier this month, the SEC and criminal authorities charged Centras two other co-founders, Sohrab Sam Sharma and Robert Farkas, …
4 days ago · From Securities Exchange Commission
CEO Dara Khosrowshahi champions everything Uber once rejected: caution, discipline, and tact. Can he reform Silicon Valley's most audacious company?Source: Wired - Emerging technologies News
CEO Dara Khosrowshahi champions everything Uber once rejected: caution, discipline, and tact. Can he reform Silicon Valley's most audacious company?Source: Wired - Emerging technologies News
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
04.12.2017 (04.12.2017)
24 Views
0 Subscribers
Recommend