SEC Charges Centra Tech ICO again $32 million Fraud
The SEC (Securities and Exchange Commission) of the U.S. has filed charges against a third partner after an investigation conducted on Centra Tech Inc.’s $32 million promoted by legendary boxer Floyd Mayweather.
According to the SEC, charges were filed against Centra Tech earlier this month because the $32 million raised was for a fraudulent securities offering.
In a modified charge, Raymond Trapani, the co-founder of Centra has been famed as the “mastermind.” Previously, SEC charges two other co-founders namely Sohrab Sharma and Robert Farkas for their roles in the fraudulent scheme.
The three planned to create the theory they had created a cutting-edge technology, said Robert A. Cohen chief of the commission’s cyber enforcement unit in the amended complaint. He stated that investors need to be careful about investing in digital assets, mainly when they are marketed with claims seeming too good to be true.
Centra fraudulently alleged that it had business relationships with credit card companies, used false executive bios and misrepresented the company’s core financial service products, according to the revised complaint. Trapani and Sharma allegedly manipulated the trading of the tokens to drive interest in the company along with the token’s price.
Sharma texted his partners after obtaining a cease order from a bank ordering him to drop references to the bank in Centra’s marketing materials they required to remove the references and should blame freelancers for the use of the recommendations, the complaint states.
Trapani texted Sharma to create a fake document to get the tokens listed in exchange, to which the latter replied:
“Don’t text me that s[***] lol. Delete.”
The amended complaint, filed in federal court in Manhattan, alleges that Trapani infringed the anti-fraud and registration provisions of the federal securities laws. The complaint calls for permanent sanctions, the return of allegedly ill-gotten gains, plus interest and penalties. It also calls for banning Trapani from working as a public company officer or director and from allowing securities.
In a similar action, the U.S. Attorney’s Office for the Southern District of New York ordered criminal charges against Trapani.
The SEC accepted the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Manhattan District Attorney’s Office, the Federal Bureau of Investigation, and the Conference of State Bank Supervisors.
Centra Tech’s website affirms that it is currently under maintenance.