The US Securities and Exchange Commission (SEC) announced charges against a third partner in their investigation of a $32 million initial coin offering (ICO) promoted by legendary boxer Floyd Mayweather.
The SEC arrested against Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech, Inc., earlier in April on charges of defrauding investors in their $32 million ICO. However, the SEC amended their complaint on April 20, naming a third suspect, co-founder Raymond Trapani, also charging Trapani with fraud and naming him the “mastermind.”
According to the complaint, “defendants promoted the Centra ICO by touting nonexistent relationships between Centra and well-known financial institutions, including Visa, Mastercard and The Bancorp,” engaging in “fraudulent conduct” and making “material misstatements and omissions designed to deceive investors.”
Centra claimed to provide a debit card that would allow holders of cryptocurrencies to spend their virtual funds “in real time” at locations anywhere in the world that accept Visa and Mastercard.
According to the SEC, Trapani “was responsible for a variety of issues relating to the fraudulent offering, including managing the distribution of Centra Tokens to investors and responding to individual investors’ questions and complaints concerning the offering.”
The complaint calls for permanent injunctions, the return of allegedly ill-gotten investments, plus interest and penalties, as well as barring Trapani from serving as a public company officer or director and from offering securities.