Quebec Tribunal extends restraint order against virtual currency scheme PlexCorps
The Financial Markets Administrative Tribunal of Quebec has prolonged the duration of the order for further 120 days.
Proceedings against PlexCorps, PlexCoin, DL Innov inc., Gestio inc., Dominic Lacroix, and Sabrina Paradis-Royer, accused of running a virtual currency scam, continue in Canada. The Financial Markets Administrative Tribunal (TMF) of Quebec has extended the restraint order against the defendants for further 120 days.
Given that the current restraint order expires on January 18, 2018, the order is now extended until May 17, 2018. The defendants are prohibited from disposing or making use of any funds, securities or other assets that are entrusted to them or that they have in possession.
In making the decision, the Tribunal noted that the factors underlining the initial issuance of the order are still into play and that the investigation continues.
In June last year, the Tribunal found that Dominic Lacroix, DL Innov inc., Micro-Prêts inc. and Gap Transit inc were violating securities laws. The Tribunal ordered blocking the bank accounts of the entities and individuals in question and freezing their assets. TMF also banned Dominic Lacroix, Régis Roberge, DL Innov inc. and Micro-Prêts inc. from exercising all securities-related activities and financial advice.
In July, TMF banned PlexCorps, PlexCoin, DL Innov inc., Gestio inc. and Dominic Lacroix from all investment-related activities involving targeting Quebec residents from within or outside Quebec.
The entities in question were also ordered to withdraw all of their announcements and investment advertising materials from various Internet sites and elsewhere. Also, TMF ordered PlexCorps, PlexCoin, DL Innov inc., Gestio inc. and Dominic Lacroix to close the websites www.plexcorps.com and www.plexcoin.com, as well as all other websites of theirs of similar nature, or make them inaccessible for all Quebec IP addresses. Lastly, the Tribunal ordered Facebook Canada Ltd. to close the Facebook accounts of PlexCorps and PlexCoin.
In December 2017, the Honorable Judge Marc Lesage of the Superior Court of Quebec issued a two-month prison sentence and a fine of $110,000 to Mr Lacroix and DL Innov. The decision was made after in October, the Superior Court of Quebec found Dominic Lacroix and DL Innov inc guilty of contempt of court.
In his decision, Honorable Judge Marc Lesage underlined that the complaint submitted by the Quebec’s financial markets authority AMF proved that the defendants continue to solicit and offer to Quebec residents to invest in PlexCoin, a virtual currency. The solicitation happens in violation of previous orders issued by the Financial Markets Administrative Tribunal (TMF) of Quebec.
In the meantime, the US authorities have also taken action against PlexCoin and the entities associated with it. In early December, the US Securities and Exchange Commission (SEC) launched a lawsuit against PlexCorps aka PlexCoin and Sidepay.ca, Dominic Lacroix and Sabrina Paradis-Royer at the New York Eastern District Court.
In its complaint, the US regulator says that it has to take an emergency action to stop Lacroix, a recidivist securities law violator In Canada, and his partner Paradis-Royer from further misappropriation of investor funds illegally raised through the fraudulent and unregistered offer and sale of securities called “PlexCoin” or “PlexCoin Tokens” in a purported “Initial Coin Offering”.
From August 2017 through the present, the defendants are alleged to have obtained about $15 million from thousands of investors, including those throughout the United States and in the Eastern New York District, through materially false and misleading statements.
