Two siblings have been charged by the U.S. Securities and Change Fee in connection to an alleged cryptocurrency scheme value $124 million.
John and JonAtina "Tina" Barksdale are accused of defrauding hundreds of traders via a faux digital cryptocurrency they dubbed Ormeus Coin from June 2017 to 2022, in line with SEC paperwork. They're additionally accused of operating a multi-level advertising program known as Ormeus International from June 2017 via April 2018 that offered subscription packages that included Ormeus Coin.
"We allege that the Barksdales acted as modern-day snake-oil salesmen, utilizing social media, promotional web sites, and in-person roadshows to mislead retail traders for their very own private profit," mentioned SEC Division of Enforcement Affiliate Director Melissa Hodgman. "We'll proceed to vigorously pursue individuals who promote securities in schemes to defraud the investing public it doesn't matter what label the promoters apply to their merchandise."
In keeping with the SEC, the Barksdales advised traders that they have been within the means of mining Ormeus Coin in collaboration with an unnamed main crypto mining firm. The duo additionally mentioned that the mining was serving to to supply $5.4 to $8 million value of the coin monthly. Nonetheless, the mining was known as off in 2019, unbeknownst to the traders that had already invested within the coin.
Pretend wallets have been created by the Barksdales with a purpose to masks the truth that Ormeus Coin was allegedly not being mined. The siblings, primarily Tina in line with the SEC, additionally allegedly ran quite a few social media accounts that promoted lies concerning the coin's value. Not solely that, however their multi-level advertising enterprise additionally compelled traders to place cash into Ormeus Coin in addition to different cryptocurrencies.
"The women and men of HSI [Homeland Security Investigations] is not going to permit fraudsters to promote goals of inflated and unrealistic revenues to harmless traders with the aim of lining their very own pockets," mentioned performing HSI New York Particular Agent in Cost Ricky Patel. "By leveraging federal and worldwide partnerships, Barksdale is now going through prosecution within the Southern District of New York for his alleged felony acts."
John Barksdale is at the moment being charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and wire fraud. It's unknown whether or not Tina Barksdale has additionally been charged with these counts.
Replace at 3/8/22, 3:52 p.m. ET: This story has been up to date with extra info on the case.
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