FINRA Involved in First Cryptocurrency Case Involving Broker
He is accused of omitting crucial details where he misled the public in return losing money. The information has been deemed crucial for potential investors.
Timothy Ayre In Trouble With FINRA
Broker Timothy Tilton Ayre has officially been charged by FINRA. A press statement from the authority stated that Ayre was charged with exchange fraud and distribution of a cryptocurrency that was not permitted by the law. The Ayre case is the first crypto related issue to be handled by FINRA.
According to charge documents, Ayre was planning to lure potential investors into putting their money in a company that did not exist. The company was identified as Rocky Mountain Ayre, Inc. FINRA claims that Ayre’s firm used a crypto dubbed HempCoin. He marketed the crypto as a minable currency with the support of the security market. FINRA further stated that Ayre released a positive public statement about his firm. The statements are said to be fraudulent.
Unconfirmed reports indicate that RMTN was part of the Pink Market. It is alleged to be part of OTC Markets Group. FINRA statement revealed that other allegations were brought up from previous misconduct by Ayre. It emerged that the accused had received the go-ahead to repackage HempCo tokens.
FINRA Slaps More Charges Against Ayre Over Fake Cryptocurrency
Ayre is believed to have classified the tokens as a security anchored on RMTN public stock where he told investors that his firm was ahead of the pack in terms cryptos that stand in for equity ownership. For investors, they were assured that if they bought one token, they will automatically own 0.10 shares under RMTN’s common stock.
After the purchase, 81 million cryptos under the firm were mined with tokens exchanges on two trading platforms. Now authorities have proof that HempCoin was never registered. Additionally, he did not make any attempt to apply for registration. The move will see Ayre charged with circulation of unauthorized security.
He also faces additional charges of extorting money from clients by lying to them about the true purpose of his venture. FINRA records indicate that Ayre did not provide key details about HemCoin distribution. In return, he misled the public through the omission of the details.