Plexcoin ICO Hit with $7 Million Final Judgement in SEC Enforcement Action

It has been a big week for enforcement actions at the Securities and Exchange Commission (SEC). Beyond the routine fraud cases, the SEC Division of Enforcement has announced settlements with several high profile initial coin offerings (ICO). Today, the Plexcoin ICO landed squarely in the sights of the Enforcement Division.

According to a release, the SEC announced a final judgment against the Plexcoin ICO who consented to the judgment that enjoined the proprietors from future violations of the antifraud provisions of the federal securities laws and ordering them to pay nearly $7 million.

According to the SEC’s complaint, filed Dec. 1, 2017, PlexCorps, and its proprietors Dominic Lacroix and Sabrina Paradis-Royer, fraudulently raised millions of dollars in virtual and fiat currency from the unregistered sales of securities.

On October 2, 2019, the U.S. District Court for the Eastern District of New York, entered a final judgment against PlexCorps, Lacroix, and Paradis-Royer.

The Defendants, without admitting or denying the allegations in the SEC’s complaint, are enjoined from further violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule l0b-5 thereunder, and Lacroix and Paradis-Royer are additionally enjoined from participating in any digital-securities offerings.

The Defendants must disgorge $4,563,468 in gains from the PlexCoin ICO plus $348,145 in prejudgment interest.

Lacroix and Paradis-Royer are ordered to each pay a $1,000,000 civil penalty.

Lacroix also is permanently barred from serving as an officer or director of a publicly-traded entity.

The final judgment requires the Defendants to forego their rights to the entirety of the investor funds seized by a receiver appointed by the Superior Court of Quebec, totaling approximately $4 million, as well as $800,000 in investor funds.

The SEC anticipates coordinating any distribution to harmed investors with the Autorité des marchés financiers of Quebec.

The SEC first revealed an emergency action against Plexcoin back in December 2017.

Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Sponsored Links by DQ Promote


Send this to a friend