The founders of an initial High Profit Parts Offering (ICO) were charged with cheating investors on the operation of their cryptocurrency company Centra Tech.
On Monday, the US Attorney’s Office for the Southern District of New York announced that it had filed suit against Sohrab Sharma, Raymond Trapani and Robert Farkas, the co-founder and operated Centra Tech.
The authorities claim that Centra Tech’s operators not only held unregistered securities, but “acted fraudulently and made material misstatements and omissions to deceive investors,” including partnerships with key institutions. like Visa and Mastercard.
US Attorney Robert Khuzami said the defendants also created a fictional CEO to give the system more credibility:
“Allegedly, the defendants plotted to capitalize on investors’ interest in the emerging crypto-currency market, allegedly misrepresenting their product and relationships with credible financial institutions, and even created a fictitious Centra Tech CEO, whether traditional or modern, investment banking. Vehicles can not legally be sold with lies and lies. ”
The OIC, sponsored by legendary boxer Floyd Mayweather, has raised $ 32 million at the time of the bid, but on the arrest of the three suspects, the Federal Bureau of Investigation (FBI) seized 91,000 ethers, which are now worth $ 67 million ,
Each of the three founders of Centra Tech was convicted of conspiracy for fraud, conspiracy to cable fraud, securities fraud and cable fraud. The first head is punished with up to five years in prison, the last three are punished with up to 20 years in prison. You will also have to expect fines. The case was transferred to US District Judge Lorna G. Schofield.
The US Securities and Exchange Commission (SEC) has filed civil charges against Sharma, Trapani and Farkas for their role in the regime.