According to the latest reports, the case between PlexCorps and the United States SEC (Securities and Exchange Commission) has reached a settlement. Both the individual defendants have given their written consent to pay the fines and refrain from participating in the activity of digital securities offering in the future.
The documents were filed on 9th August 2019 with the NY Eastern District Court and included signed consents from the defendants Sabrina Paradis-Royer, Dominic Lacroix, and PlexCorps. The documents also included a suggested final judgment against all the defendants. The settlement is yet to be signed-off by the judge, per the reports.
As per the settlement, Paradis-Royer and Lacroix have accepted to pay one million dollars each as civil penalty while PlexCorps will have to surrender 4.56 million dollars along with an interest of 350,000 dollars.
The Morrison Cohen LLP partner Jason P. Gottlieb who’s representing PlexCorps, came forward to share his views on the development. Gottlieb said that PlexCorps is glad to have reached a settlement in the case with the SEC. The start-up is providing complete cooperation to the regulator to make certain that the US PlexCoin buyers be entitled to receive direct refunds from the US regulator, added Gottlieb.
The settlement also saw both the individuals agreeing to never do any fraudulent activities in the future. The order also prohibits Lacroix from working as a director or an officer of any public company. Moreover, the frozen assets need to be transferred to the Commission so that they can be distributed among the investors.
For those who came in late, PlexCorps had raised about 15 million dollars through an ICO for unregistered securities called PlexCoins. Post the ICO, and the company was taken to court in the month of December 2017 by the United States SEC. The lawsuit also claimed that these raised funds were being used for personal expenditure by Lacroix. Going by the FinanceFeeds reports, the SEC at the time had called for an emergency action; attaining temporary restraining orders as well as asset freeze orders. It had also obtained orders against document ruination.
The suggested settlement, as noted by the SEC, is reasonable and fair that would serve the interest of the public.