Titanium Blockchain CEO Pleads Guilty of Cryptocurrency Fraud

The CEO of Titanium Blockchain Infrastructure Services (TBIS) has pleaded guilty to securities fraud charges after using “false and misleading statements” to persuade investors to buy unregistered cryptocurrency tokens.

Titanium Blockchain CEO Pleads Guilty of Cryptocurrency Fraud

Michael Alan Stollery, 54, of Reseda, California, admitted his role in a cryptocurrency fraud scheme involving the TBIS Initial Coin Offering (ICO), which raised approximately $21 million from investors in both the United States and abroad. His TBIS firm was presented to investors as a cryptocurrency investment platform that was tricked into buying “BARs” that were supposedly legitimate cryptocurrency tokens, but Stollery had not registered with the US Securities and Exchange Commission (SEC).

Investors misled by crypto fraud

Stollery has since explained that in order to entice investors, he falsified aspects of TBIS’ whitepapers. The fakes reportedly provided investors and potential investors with an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, as well as how the offering differed from other cryptocurrency opportunities. He also falsified prospects for the profitability of the supply.

Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division of the Department of Justice announced the charges and pleaded in court. Also in attendance were Deputy Director Luis Quesada of the FBI’s Criminal Investigation Division and Acting Special Officer, Cory Nootnagel, of the Office of Inspector General of the Board of Directors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region .

Crypto Criminal Used Funds For Hawai’i Condo

A statement on the Department of Justice website further stated: “Stollery also posted false customer testimonials on the TBIS website, falsely claiming that he had business relationships with the Federal Reserve and dozens of prominent companies to give the false appearance of legitimacy. wake up.

Stollery further admitted that he did not use the money invested as promised, but instead mixed the money from the ICO investors with his personal funds, using at least a portion of the proceeds from the offering for expenses that were unrelated. account with TBIS, such as credit card payments and bill payment for Stollery’s Hawaii condominium.”

Stollery’s admission of guilt comes four years after the SEC first received an emergency order to shut down TBIS’s 2018 ICO. An emergency asset freeze was also approved and a trustee was also appointed to hold the assets of the company.

One of the attorneys representing Stollery, Andrew Holmes, explained that the plea was the criminal prosecution of the SEC action. Speaking to the Wall Street Journal, Holmes said Stollery’s crimes were “excessive exuberance going beyond what he should have done.”

Holmes also explained that most of the investors’ money converted into cryptocurrency is in the recipient’s possession and that Stollery has been cooperating with authorities from the start of the case. “He is very remorseful,” Holmes added. “He wants to get as much money back as possible for those who put their money into it.”

Fraudster risks up to 20 years

Stollery is expected to be sentenced on November 18 and face up to 20 years in prison. A federal district court judge will determine each sentence and will consider US sentencing guidelines and other legal factors.

Get the latest headlines from Small Business Trends. Follow us on Google News.

Image: Depositphotos

This post Titanium Blockchain CEO Pleads Guilty of Cryptocurrency Fraud was original published at “https://smallbiztrends.com/2022/07/ceo-pleads-guilty-to-cryptocurrency-fraud-charges.html”

Leave a Reply

Your email address will not be published.