Three Canadian citizens who were involved in an alleged initial coin offering scam from the PlexCorps crypto project were charged with fraud over 8 million dollar conning investors.
According to a statement from the U.S. July 24, PlexCorps owners Dominic Lacroix and Sabrina Paradis-Royer. As well as former employee Yan Ouellet was charged with five charges. Including conspiracy to commit securities fraud and wire fraud, wire fraud, and conspiracy to engage in money laundering.
The three were found to be responsible for the transfer to their personal accounts of millions in investor funds obtained through an initial coin offering ( ICO) for the company’s cryptocurrency PlexCoin. Lawmakers said they used part of the $8 million raised for “daily living expenses and home renovation products.”
Lying to investors
The indictment states that by way of social media posts and websites, Lacroix, Paradis-Royer, and Ouellet misrepresented PlexCoin to investors.
As per the U.S., The three attorneys made false claims stating that the management of PlexCorps consisted of a team of experts headquartered in Singapore. And that investors could expect returns of up to 1.354 percent within 29 days.
Using those claims, PlexCorps raised $8,269,218 from the ICO of PlexCoin.
The Ohio case is only the latest indictment against individuals involved in the ICO.
In December 2017, the U.S. Securities and Exchange Commission (SEC) filed an emergency asset freeze on PlexCorps. As well as on behalf of Lacroix and Paradis-Royer, as part of a case accusing the firm of violating securities legislation. On renewing the freeze in June 2018, the SEC referred to Lacroix as a “recidivist Quebec securities law violator”
In August Cointelegraph reported that the SEC had reached a settlement of $7 million between PlexCorps, Lacroix, and Paradis-Royer. Both are required to pay $4.5 million — around 55 percent of the funds raised at the ICO. As well as $1 million in civil penalties each. And $348,145.25 for interest on prejudice.