The Price of a Bad Investment: Meet PlexCorps
In a world where investments can seem a bit too good to be true, the PlexCoin initial coin offering (ICO) has proven this principle without a doubt. The U.S. Securities and Exchange Commission (SEC) took a firm stand against PlexCorps owner Dominique Lacroix and his business partner, Sabrina Paradis-Royer, after discovering that they had allegedly duped investors into believing their digital currency would yield a jaw-dropping 1,354% return in less than a month. Spoiler alert: it didn’t.
Settlements and Sorrow: The SEC’s Court Moves
On August 12, the SEC submitted a settlement agreement to a U.S. District Court in Brooklyn that highlights just how lucratively Lacroix and Paradis-Royer attempted to fool the masses. The duo and their company agreed to pay nearly $7 million as part of the settlement. A staggering amount, you might say, but one that might not even scratch the surface of what these clever criminals could have kept had they played by the rules.
How Much Did They Actually Raise?
For those of you with a penchant for numbers, here’s the breakdown: the PlexCoin ICO raised a grand total of $8,269,218. That’s a hefty amount to walk away from, especially when you remember that about 55% of the funds raised—or roughly $4.5 million—has been tagged as their personal gain from this whole charade. Looks like those dreams of a quick buck came at a hefty price.
The Penalties Paid: No Free Pass
The settlement comes at a steep cost for both Lacroix and Paradis-Royer. Not only will they each pay $1 million in civil penalties, but they will also hand over $348,145.25 for prejudgment interest. When combined, that tallies up close to $7 million in penalties. Talk about paying for your mistakes! Add to this, the duo is now barred from managing public companies and participating in any future digital securities offerings—which might leave them with far fewer networking opportunities in the future.
The Asset Freeze: SEC Holds Their Ground
Earlier in June, the SEC had already taken significant measures to curb Lacroix’s extracurricular activities by obtaining an emergency court order to freeze his assets. No luxurious vacations in the Bahamas for this pair! This move was motivated by the SEC’s determination that Lacroix and Paradis-Royer clearly violated securities laws, and it appears to have set off alarm bells across the crypto landscape—proving once again that if something sounds too good to be true, it often is.
