SEC faces difficulties bringing PlexCoin ICO scammers to trial

Dominic Lacroix and Sabrina Paradis-Royer are charged with illegally raising $15 million through a deceptive ICO. But both have ignored a series of court orders

The US Securities and Exchange Commission (SEC) has PlexCoin owners Dominic Lacroix and Sabrina Paradis-Royer in its sights for violation of securities laws.

PlexCoin is accused of deceptively raising $15 million through an Initial Coin Offering (ICO) promising investors 1,350% returns in only 29 days. The SEC first launched a case against Lacroix and Paradis-Royer in December 2017, accusing both of them of violation securities laws regarding the launch of the PlexCoin ICO in August of last year. The complaint was lodged at the New York Eastern District Court.

The SEC accused Lacroix, who they call “a recidivist securities law violator in Canada”, and his partner of “misappropriating” funds “illegally” through a “misleading, deceptive, and unregistered securities offering”.

Two lawsuits, no results

It has on two occasions sued Lacroix for securities fraud and has issued two asset freeze orders against him. Both PlexCoin associates have ignored a series of court orders regarding the “discovery, accounting and repatriation of assets”, says the SEC.

It has expressed concerns that the pair’s failure to comply with court orders means they are getting rid of the funds they raised illegally. The SEC told the court the defendants have demonstrated no intention to “participate meaningfully” in the ongoing case.

 

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