SEC Files Court Order Enforcing Subpoena for ICO in Question
Reports issued October 9th claim that the US SEC officially filed for a subpoena targeting individuals involved in what is believed to be a pump-and-dump tactic used in an ICO worth $100 million. The regulatory agency announced it initially took action since the 5th of October targeting Jeffre Jame and the St James Holding and Investment Trust under his management. The SEC decided to take action after suspending operations conducted by a cent-stock firm called Cherubim Interests Inc. earlier in the year.
Attempting to Tackle Fraudulent ICO Schemes
The SEC issued an official announcement on the 9th of October claiming that Cherubim shared public records consisting of false information indicating the firm took part in a $100 million finance commitment in order to host the St James Trust ICO. The statement also explained that once prices and trading activities boosted based on the false reports, individuals within the firm allegedly dumped these overpriced stocks to claim a significant figure of profits.
The regulatory entity holds documents containing a MoU since January 5th outlining the firm’s ICO finance commitment which described establishing a sustainable cross-border communities token able to create sufficient capital across fifty-seven countries in addition to the United States. They also claimed to have initially acted towards suspending trading operations at the firm due to reasonable doubt regarding the information disclosed. The order of suspension filed this February claims that Cherubim allegedly held press releases the month prior confirming they received triple-A level funds from a digital asset and blockchain private investor.
Refusal to Respond to Regulatory Demands Results in Further Action
In addition, the SEC highlighted Cherubim’s failure in reporting files pertaining to the completion of 2017’s fiscal year last August. According to the SEC's report, after filing for subpoenas directed at James and his Trust this June in addition to extending multiple deadlines, there has yet to be a response from either party nor submission of required documents. As a result, the regulatory agency has sought out assistance from court orders requiring both parties to respond with the list of requested documentation.
The SEC emphasized it will continue fact-based investigations as they have done despite not yet confirmed whether or not any security laws have been violated. Cointelegraph recently reported that charges were filed by the SEC targeting a global securities dealer who offered BTC funded swaps allegedly violating federal policies.