SEC obtains Order for Preliminary Injunction, Asset Freeze against ICO scam PlexCorps
PlexCorps, also known as PlexCoin and Sidepay, is restrained from holding and retaining any assets, funds, or other property, including money.
The legal case brought by the United States Securities and Exchange Commission (SEC) against ICO scammers PlexCorps a/k/a and d/b/a PlexCoin and Sidepay.ca, Dominic Lacroix, and Sabrina Paradis-Royer, continues at the New York Eastern District Court. On Thursday, December 14, 2017, the Court granted a Motion by the SEC for issuing Preliminary Injunction and Asset Freeze orders against the so-called “entity defendant”, that is, PlexCorps.
Let’s recall that the US regulator had already managed to obtain such orders against the individual defendants in the case. Targeting PlexCorps, however, has been more difficult, as, according to Dominic Lacroix and Sabrina Paradis-Royer, PlexCorps is not a suable entity but rather a “concept name”. In response, the SEC launched an investigation which had taken it to the UK, where Sidepay Limited turned out to be registered. This has helped the US regulator to support its claim that PlexCorps is a suable entity and that Preliminary Injunction and Asset Freeze orders should be issued against it as an entity.
On December 14, 2017, the Court granted the SEC’s Motion.
The Court enjoins and restrains Defendant PlexCorps a/k/a and d/b/a PlexCoin and Sidepay.ca, as well as each of its agents, servants, employees, and attorneys, from (inter alia):
- employing any device, scheme or a1iifice to defraud;
- engaging in the offering of unregistered securities or violating Sections 5(a) and 5(c) of the Securities Act;
- hold and retain within their control and otherwise prevent any withdrawal, transfer, pledge, encumbrance, assignment, dissipation, concealment, or other disposal of any assets, funds, or other property of, held by, or under the control of Defendant PlexCorps a/k/a and d/b/a PlexCoin and Sidepay.ca.
- destroying, altering, or concealing all documents, books, and records that are in the possession, custody, or control of Defendant PlexCorps a/k/a and d/b/a PlexCoin and Sidepay.ca.
SEC 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 are alleged to have obtained $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.