FINRA Charges Broker With Fraud for Trading Unregistered Cryptocurrency

The U.S. Monetary Industry Regulatory Authority (FINRA) has filed a grievance against Timothy Tilton Ayre, charging him with securities fraud and the illegal distribution of an unregistered cryptocurrency, in accordance to a statement released on FINRA’s website Tuesday, September 11.

In the grievance, FINRA, overseen by the U.S. Securities and Exchange Commission (SEC), states that Massachusetts-based mostly Ayre experimented with to entice investment decision to his public firm, Rocky Mountain Ayre, Inc. (RMTN), by advertising HempCoin, which he misrepresented as “the first minable coin backed by marketable securities.”  The regulator writes that Ayre’s statements are “fraudulent, optimistic statements about RMTN’s organization and funds.”

Additionally, Ayre mentioned that HempCoin is a protection backed by RMTN frequent stock, telling buyers that just about every coin was equivalent to .10 shares. As a outcome, much more than than 81 million HempCoin securities had been mined in late 2017 and marketed on crypto exchanges. As Ayre by no means tried to sign up the coin, FINRA has determined to cost the RMTN head with the illegal distribution of an unregistered protection,

In addition to the above, from January 2013 by means of Oct 2016, Ayre reportedly created wrong statements about the character of RTMN’s organization and the generation and “unlawful distribution” of HempCoin, as well as earning misleading statements in RMTN’s economic statements.

FINRA, which has started a formal continuing against RMTN by filing a grievance, reminds the public in the statement that any one named in a grievance can file a reaction and request a hearing. If FINRA admits there had been violations, the agency or unique may well get a high-quality, censure, suspension, or be barred from the securities industry.

FINRA’s statement arrives the identical working day as its ruling organization SEC has issued two different cease-and-desist orders along with fines.

As Cointelegraph wrote September 11, the SEC filed a cease-and-desist against Timothy Enneking and his Crypto Asset Management fund, which “misrepresented” alone as the “first regulated crypto asset fund in the United States.” The SEC’s second recognize addresses “ICO superstore” TokenLot, which the U.S. watchdog alleges has also breached the regulation by failing to sign up in the place.

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