The U.S. Securities and Exchange Commission (SEC) has announced charges against a third partner in an investigation of Centra Tech Inc.’s $32 million ICO. It was promoted by legendary boxer Floyd Mayweather.
The commission charged Raymond Trapani, a Centra co-founder.
The SEC previously charged Sohrab Sharma and Robert Farkas who are the two other fraudsters.
They created the impression they had created a cutting-edge technology. Robert A. Cohen chief of the commission’s cyber enforcement unit said in the amended complaint. He said investors need to be cautious about investing in digital assets.
Also, executive bios and misrepresented the company’s core financial service products, according to the amended complaint. Trapani and Sharma allegedly manipulated the trading of the tokens for gaining interests.
Sharma, after receiving a cease and desist order from a bank instructing him to eliminate references to the bank.Especially, in Centra’s marketing materials. He told his partners they needed to remove the references and should blame freelancers for the use of the references.
So, The amended complaint, filed in federal court in Manhattan, claims Trapani violated the anti-fraud and registration provisions of the federal securities laws. The complaint calls for permanent injunctions. So, the return of allegedly ill-gotten gains, plus interest and penalties.
It also calls for barring Trapani from serving as a public company officer or director and from offering securities.
The U.S. Attorney’s Office for the Southern District of New York filed criminal charges against Trapani over ICO.
The SEC acknowledged the assistance of the U.S. Attorney’s Office for the Southern District of New York. The Federal Bureau of Investigation, the Manhattan District Attorney’s Office and the Conference of State Bank Supervisors.