The US Securities and Exchange Commission (SEC) announced two AriseBank executives “behind an allegedly fraudulent initial coin offering (ICO)” eventually halted by the agency a few months back “have been ordered in federal court to pay nearly $2.7 million and prohibited from serving as officers or directors of public companies or participating in future offerings of digital securities.”
AriseBank ICO Execs Settle with SEC for Millions
Jared Rice Sr. and Stanley Ford were flagged by the SEC for offering “unregistered investments” in relation to their AriseCoin crypto, at the time touted to be used with a decentralized banking concept, AriseBank.
An SEC Director explained, “Rice and Ford lied to AriseBank’s investors by pitching the company as a first-of-its kind decentralized bank offering its own cryptocurrency for customer products and services. The officer-and-director bar and digital securities offering bar will prevent Rice and Ford from engaging in another cryptoasset-based fraud.”
Both agreed they were liable for millions in disgorgement, the process of returning sums to defrauded investors, plus thousands in interest, with an additional penalty by the court. Last month, criminal charges were brought against Rice by the Northern District of Texas in related matters.
“They also agreed to lifetime bars from serving as officers and directors of public companies and participating in digital securities offerings,” the SEC noted, “and permanent prohibitions against violating the antifraud and registration provisions of the federal securities laws.”
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