The U.S. Securities and Exchange Commission (SEC) obtained a favorable verdict from a court on charges against John and Jonatina Barksdales concerning the creation of their fraudulent scheme.
The defendants violated securities laws by organizing the sale of unregistered investment contracts.
From June 2017 to March 2022, the couple offered Ormenus Coin through cryptocurrency trading platforms. From June 2017 to April 2018, the offering also ran through their managed MLM-driven Ormenus Global, the Commission said.
John Barksdale promoted the fraudulent schemes, conducting roadshows around the world, Jonatina oversaw digital advertising campaigns, including posts on social networks, YouTube videos and press releases.
The couple claimed that the Ormeus Coin team ran a mining business valued at $250 million, generating monthly revenue of between $5.4 million and $8 million. In reality, the Barksdales abandoned mining in 2019 after revenue dropped to $3 million.
The victims were thousands of retail investors. The losses from their actions exceeded $124 million.
The Barksdales will pay $102 million. The amount includes a civil penalty of $23.1 million from each, restitution ($46.3 million) and pre-judgment interest ($10 million).
In March 2023, the court sentenced to four years and three months in prison Michael Alan Stollery, CEO of Titanium Blockchain Infrastructure Services. Earlier he pleaded guilty to involvement in the fraudulent ICO scheme, which raised $21 million. In December 2022, the SEC charged Thor Technologies and its executives with an unregistered securities offering of $2.6 million.