3 Canadian citizens involved within an illicit ICO scam ‘Plexcoin’ from cryptocurrency project PlexCorps are charged with fraud over conning investors out of $8 Mln.
In line with a recent announcement on 24th July from the United States Attorney’s Office within the Northern District of Ohio, PlexCorps owners Dominic Lacroix and Sabrina Paradis-Royer as well as former employee Yan Ouellet were indicted on five charges, including conspiracy to commit securities fraud and wire fraud, wire fraud, and conspiracy to commit money laundering.
The 3 were found to be liable for transferring millions in investor funds obtained via an ICO [Initial Coin Offering] for the firm’s cryptocurrency PlexCoin to their personal accounts. Lawmakers said that they used a part of the $8 Mln raised for “daily living expenses and residential renovation products.”
Misrepresented PlexCoin To investors
The indictment adds that Lacroix, Paradis-Royer, and Ouellet misrepresented PlexCoin to investors via social media posts as well as websites.
In line with the U.S. Attorney’s Office, the three made false claims stating that PlexCorps’ management consisted of a team of experts headquartered in Singapore that investors could expect returns up to 1,354% within 29 days.
PlexCorps raised $8,269,218 USD from PlexCoin’s ICO using these claims.
Emergency Asset Freeze Against PlexCorps
The case in Ohio is merely the foremost recent indictment to be brought against individuals involved within the ICO.
The United States SEC [Securities and Exchange Commission] filed an emergency asset freeze against PlexCorps, as well as Lacroix and Paradis-Royer by name, earlier in Dec. 2017 as a part of a case accusing the firm of violating law. The SEC mentioned Lacroix as a “recidivist Quebec law violator” when renewing the freeze recently in June 2018.
As reported earlier in August, the SEC had reached a $7 Mln settlement between PlexCorps, Lacroix, and Paradis-Royer. The two are required to pay $4.5 Mln – roughly 55% of the funds raised within the ICO – also as $1 Mln in civil penalties each and $348,145.25 for prejudgment interest.