In an investigation regarding a $32 million ICO fraud case which was sponsored by legendary boxer Floyd Mayweather, the U.S. Securities, and Exchange Commission (SEC) has made charges against a third partner in an investigation of Centra Tech Inc.
Earlier this month, the SEC had made accusations against the Centra Tech regarding a $32 million fund which according to the firm was a falsified securities offering.
The commission in an amended complaint charged Raymond Trapani, a Centra co-founder also involved in the issue, referring to him as the “mastermind.” Earlier on, the SEC had charged Sohrab Sharma and Robert Farkas who are also co-founders for their involvement in the fraud.
In the amended complaint, Robert A. Cohen chief of the commission’s cyber enforcement united noted that the three men took a lot of effort to act as if they created a genuine technology. He went on to warn investors that they need to be alert when investing in cryptocurrencies, especially when they are offered deals that are seemingly very good but not real.
Centra deceitfully stated it had dealings with credit card firms, made used of falsified executive bios and tainted the company’s fundamental financial service products. The complaint went on to state that Trapani and Sharman apparently influenced the sales of tokens to increase interest in the firm including the token’s price.
Following a cease and desist order from a bank asking him to get rid of references to the bank in Centra’s marketing materials, Sharma went ahead to tell his partners that after removing the references, they need to put the blame on freelancers for the use of references.