The U.S. Securities and Exchange Commission (SEC) has reached an agreement with the two men accused of selling illegally the blockchain-based company’s shares.
On 2 July, the SEC announced the charge of two men who took advantage of inflation and sold the shares of a blockchain company at a higher price than originally indicated. According to the agency, attorney T.J. Jesky and his law enterprise manager Mark F.DeStefano earned nearly $ 1.4 million by trading shares of UBI Blockchain Internet Ltd. between December 26, 2017, and January 5, 2018.
Men based in Nevada are charged for trading 72,000 shares at a price under the influence of inflation (from $ 21.12 to $ 48.40). The legal price according to the agreement was set at $ 3.70 per unit. Operations were suspended by SEC on January 5, following the doubtful market operations.
“This case is a prime example of why the SEC has warned retail investors to be cautious before buying stock in companies that suddenly claim to have a blockchain business,” claimed Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit, adding that “This case involved both a trading suspension and people holding restricted shares who attempted to profit from the dramatic price increase with illegal stock sales that violated the registration statement.”
The information was updated on July 9, indicating that both men have “without admitting or denying the allegations in the SEC’s complaint“, accepted to return the $ 1.4 million profit. Additionally, they will receive several stable admonitions plus a $ 188,682 fine.