The US Securities and Exchange Commission has been given the victory of a $ 1.1 million court, when a person accused of running a crypto scam, failed to respond to the agency’s trial.
A federal court judge in Georgia submitted a default decision in favor of the SEC on June 3 against the Keith crew, which failed to respond or defend himself against the SEC trial that he had filed in August 2023.
Judge Tiffany Johnson ordered the crew to pay a financial penalty of more than $ 1.1 million, found him liable to hate $ 530,000 in pure profits from his perceived misconduct and ordered him to pay a $ 51,000 bias interest and $ 530,000 civil penalty.
The judge ruled that the crew was permanently banned by the future violation of the securities laws.
The SEC made a crypto fraud scheme between October 2019 and May 2021 through their companies, Four Square Bus and Stem Biotech.
The SEC claimed that it raised at least $ 800,000 from about 200 investors through the sale of a “alleged crypto asset security” named “Stami Coin”, and many investors were urged through relationships in “African-American and Church communities.”
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The regulator accused the crew of making false claims on investors, such as the tokens were supported by rigid assets such as stem cell technology and gold, and that their company had a track record of giving existing laboratory, products and stem cell remedies.
Fake lab and participation
The SEC claimed that the crew shared with doctors and research teams, while in fact, the firm had no laboratory, product, research, partner or stem cell technology.
The agency said in its complaint, “Crew and their institutions had no existing stem cell technology, products or operations, there was no partnership with the claimed institutions.”
The complaint alleged violations of several federal securities laws, including the Securities Act fraud provision, exchange act fraud and registration violations.
The decision represents a rare crypto-related victory for SEC, which has injured its crypto enforcement operations under the Trump administration this year.
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