Three Canadian citizens involved on the alleged fraud of the cryptocurrency project’s initial coin offering PlexCorps has been charged with investor fraud for $ 8 million.
According to a July 24 statement by the United States Attorney General for the Northern Ohio District, PlexCorps owners, Dominic Lacroix and Sabrina Paradis-Royer, as well as former employee Yan Ouellet, have been charged with five charges, including conspiracies to commit security fraud, wire fraud, and complicity in money laundering..
All three were held responsible for transferring millions of investment funds to their personal accounts, which were obtained through a first coin offering (ICO) for the cryptocurrency PlexCoin. the company. Legislators said he spent part of the $ 8 million on “daily living expenses and renovation products.”
Lie to investors
The prosecutor notes that Lacroix, Paradis-Royer and Ouellet misrepresented PlexCoin to investors via social media and websites.
According to the U.S. Attorney General All three made false claims that PlexCorps management consisted of a team of Singapore-based experts and investors could expect a return of up to 1,354% in 29 days.
PlexCorps raised $ 8,269,218 from the PlexCoin ICO using these instructions.
The litigation begins
The Ohio case is only the most recent charge ever filed. against the people involved in the ICO.
The U.S. Securities and Exchange Commission has launched an asset emergency stop against PlexCorps, Lacroix and Paradis-Royer namely in December 2017 as part of a lawsuit accusing the company of violating the Securities Act. The S Lacroix has been described as a “repeated violation of the Quebec Securities Act”. when he renewed the freeze in June 2018.
Cointelegraph reported in August that The SEC had reached a $ 7 million agreement between PlexCorps, Lacroix and Paradis-Royer. Both have to pay USD 4.5 million, about 55% of the funds collected in the ICO, and $ 1 million each in civil penalties and $ 348,145.25 for prejudice interests.