SEC secures judgments against 3 in Bitconnect scam
Two other people involved in the alleged Bitconnect Ponzi scheme, Joshua Jeppesen and Michael Noble, and a defendant for damages, Laura Mascola, collectively must pay more than $ 3.5 million and hand over 190 bitcoins after the Securities and Exchange Commission (SEC ) of the United States obtained judgments against them.
The SEC said Jeppesen served as a liaison between Bitconnect management and promoters and appeared at conferences and promotional events to represent Bitconnect. He has to pay over $ 3 million in restitution and pre-judgment interest. He also has to pay a penalty of $ 150,000 and hand over a bitcoin wallet to “meet his obligation” to pay back 190 bitcoins.
Bitconnect, which operated between January 2017 and January 2018, reportedly used a network of promoters to sell $ 2 billion worth of unregistered securities. Promoters received commissions, similar to multi-level marketing entrepreneurs, for recruiting investors.
According to the SEC, Noble, who was also known as “Michael Crypto”, promoted Bitconnect and sold unregistered securities as part of its fraudulent “loan scheme.” The judgment against Noble is not yet final, and the restitution he must pay will be determined at a later date.
Noble and Jeppesen are both permanently prohibited from offering, operating or participating in certain marketing and sales programs as well as digital asset offerings.
The SEC has identified Mascola as Jeppesen’s fiancée. The agency said Mascola, who was not otherwise involved with Bitconnect, received more than $ 500,000 in cash and ill-gotten bitcoins from Jeppesen. Mascola’s judgment orders him to pay $ 576,358 in disgorgement and pre-judgment interest.