SEC emergency action halts Plexcorps ICO scam

SEC emergency action halts Plexcorps ICO scam

The Securities and Exchange Commission (SEC) yesterday announced it obtained an emergency asset freeze to halt a fast-moving Initial Coin Offering (ICO) fraud.

It was reported in the suit filed by SEC that PlexCorps raised up to $15 million from thousands of investors since August 2017 by falsely promising a 13-fold profit in less than a month on PlexCoin investments.

The charges filed against Dominic Lacroix and his company, PlexCorps by SEC had the complaint filed in federal court, Brooklyn, New York. It 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 percent profit in less than 29 days. SEC also charged Lacroix’s partner, Sabrina Paradis-Royer, in connection with the scheme.

According to Robert Cohen, Chief of the Cyber Unit “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. He added that the Commission 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.

Recall that SEC’s Office of Investor Education and Advocacy earlier issued an Investor Alert captioned “PUBLIC COMPANIES MAKING ICO-RELATED CLAIMS” in August 2017 warning investors about scams of companies claiming to be engaging in initial coin offerings. If only the information was well disseminated, so many people would not have fallen prey!

Consequently, SEC’s complaint charges Lacroix, Paradis-Royer and PlexCorps with violating the anti-fraud and registration provisions, of the U.S. federal securities laws.  The complaint seeks permanent injunctions, disgorgement plus interest and penalties. Hmm! One wonders, if they will ever get out of these charges.

Read Also: FIFA releases procedure for the World Cup final draw