The Securities and Exchange Commission (SEC) has posted a notice that on March 15, 2023, the U.S. District Court for the Southern District of New York entered a final judgment against Defendants John and sister JonAtina (Tina) Barksdale ordering permanent injunctions, disgorgement with interest, and civil penalties. In March of 2022, the SEC announced an enforcement action against the Barksdales, alleging fraud that apparently generated around $124 million from retail investors in the unregistered offering of a digital asset security Ormeus Coin.
The SEC claims that from June 2017 to March 2022, the Barksdales raised tens of millions of dollars through two unregistered fraudulent offerings via a multi-level marketing business called Ormeus Global. The complaint alleges that to promote the offerings, John Barksdale held roadshows around the world while the duo promoted the crypto on social, etc.
The complaint also alleges that the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto asset mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue.
The judgment, entered on the basis of default, demands that the Barksdales pay a disgorgement of $46,297,463 and prejudgment interest of $10,044,822. The Barksdales were also ordered to each pay a civil penalty of $23,148,731, along with other penalties.
The defendants must make the payments to the SEC within 30 days after entry of this Final Judgment.