SEC asks Court to extend asset freeze, restraining orders against PlexCoin scammers

Maria Nikolova

The regulator asks the New York Eastern District Court to extend the temporary restraining orders, asset freeze orders, and orders against destruction of documents against PlexCoin scammers.

Following the launch of a legal action by the United States Securities and Exchange Commission (SEC) against virtual currency scammers PlexCorps (PlexCoin and SidePay.Ca), Dominic Lacroix, and Sabrina Paradis-Royer last week, the regulator is now seeking extension of certain Court orders against the fraudsters.

On Thursday, December 7, 2017, the SEC filed a Letter with the New York Eastern District Court, asking for an extension of temporary restraining orders, asset freeze orders, and orders against destruction of documents. These orders are set to expire on Tuesday, December 12, 2017. The regulator wants them to be extended until the conclusion of a hearing to show cause.

Let’s explain what this hearing is about. On December 4, 2017, the Court ordered directed the defendants – PlexCorps, Dominic Lacroix, and Sabrina Paradis-Royer, to show cause why an order should not be entered for their permanent enjoinment from violating the Securities Act of 1933, the Securities Exchange Act of 1934, and from participating in any offerings of unregistered securities or otherwise violating Sections 5(a) and 5(c) of the Securities Act.

The defendants should also show cause why the Court should not freeze their assets, and prohibit them from destroying, altering, or concealing documents in their possession, custody, or control.

In its complaint, the US regulator said that it had 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 have obtained investor funds, purportedly $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.

SEC notes that it appears from the evidence that the defendants have already transferred at least $900,000 of the misappropriated funds from a U.S. Dollar-denominated account controlled by a U.S.-based entity known as Stripe, that at least $810,000 of those funds remain in accounts at Stripe, and that at least some of those funds are currently under Defendants’ control in addresses on cryptographically-secured ledgers or “blockchains”.

SEC adds that evidence suggests that the defendants or their associates have already contemplated destroying evidence relating to the allegations in the complaint.

Along with the extension of the asset freeze and restraining orders, SEC also asks the Court to amend certain parts of the case schedule. For instance, the document production deadline is set to be adjourned from December 5, 2017 to January 22, 2018. The deposition of Lacroix is set to be adjourned for February 5, 2018 and that of Defendant Paradis-Royer is set to be adjourned for February 6, 2018.

The case is captioned Securities and Exchange Commission v. PlexCorps (1:17-cv-07007).

Read this next

Industry News

SEC Chair Gensler pitches for regulation of crypto exchanges; will Ripple benefit?

In what can be perceived to be a big boost for the crypto community, Gary Gensler, the newly appointed chairman of the Securities and Exchange Commission (SEC) has asked the Congress to look into crypto regulation.

Industry News

Baton Systems integrates with LCH for automation of collateral workflow

Baton Systems, a provider of post-trade solutions for financial markets, has announced its integration with LCH, a leading clearing house, for automating the end-to-end collateral workflow for participants in the derivatives markets.

Industry News

CBOE Expands Its European Team with Hiring of Senior VP

CBOE Europe, a pan-European exchange operator and which is a part of CBOE Group based in the US, has expanded its European team with the hiring of Natan Tiefenbrun as its Senior Vice President, Head of European Equities.

Retail FX

London C-level executive market on fire: Tickmill, you’re up

Mukid Chowdhury is now the face of Trading 212. This, however, has left a newly vacant seat. Now, it’s Tickmill’s turn to fight for a Chief Financial Officer. The C-level executive market in London is on fire at the moment.

Industry News

Sapien Capital: FCA fines £170k for allowing Solo Group’s money laundering

The role of Sapien Capital is that it executed purported OTC equity trades to the value of approximately £2.5 billion in Danish equities and £3.8 billion in Belgian equities.

Industry News

MAS invites all fintechs to apply for green tech accelerator

Fintechs should aim to solve at least one of the three key challenges proposed by MAS: (i) Mobilising Capital; (ii) Monitoring Commitment; and (iii) Measuring Impact.

Technology

LSEG tests DCM digitization platform developed with Nivaura

This issuance marks an important milestone in capital markets automation and digitization and demonstrates the potential of such platforms to improve current capital market workflows.

Industry News

Archegos Capital prepares for insolvency proceedings

Archegos Capital, the troubled capital management firm, is preparing for insolvency proceedings as banks that handled its funds are trying to recoup their losses from it.

Inside View

FinanceFeeds announces interview and media opportunities at IFX EXPO

After a tough year for much of the world and the FX industry, Ultimate Fintech has announced the first in-person B2B event of the year – IFX EXPO Dubai.