Quebec’s Financial Markets Administrative Tribunal keeps issuing orders against cryptocurrency scammers
The Tribunal has decided to extend a restraint order against Dominic Lacroix, DL Innov, Micro-Prêts inc. and Gap Transit inc.
Quebec’s authorities continue to prosecute cryptocurrency scams, with all the entities associated with notorious PlexCoin being in the focus of regulatory attention. The Financial Markets Administrative Tribunal (TMF) of Quebec has just published its decision to extend the duration of restraint orders against: Dominic Lacroix, DL Innov inc. (operating as PlexCorps and PlexCoin), Micro-Prêts inc. and Gap Transit inc.
The restraint orders were initially issued in the summer of last year. They were set to expire on February 6, 2018. After the Tribunal’s decision the orders are extended until June 5, 2018.
The extension was demanded by the Financial Markets Authority (AMF) of Quebec. The counsel for the regulator has argued that the motives for the issuance of the original restraint orders are still valid and that it would be in the public interest to prolong the orders.
The orders prohibit the defendants from all activities involving securities and from providing investment advice. The orders also freeze the assets of the defendants and prohibit them from operating with the funds obtained from investors.
In October last year, the Quebec Superior Court acted in response to a complaint by Quebec’s financial markets authority (AMF) and ruled that Dominic Lacroix and DL Innov inc were guilty of contempt of court. In his decision, Honorable Judge Marc Lesage underlined that the complaint submitted by the regulator 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 Facebook page of PlexCorps is still active, with posts stating that PlexCorps is “currently working to solve as soon as possible all legal issues it has been facing since the end of 2017”.
In December 2017, the United States 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.
