A California-based man pleaded responsible on Friday for his participation in a “coordinated cryptocurrency and securities fraud scheme” that after attracted the endorsement of superstar actor Steven Seagal.
John DeMarr pled to 1 rely of conspiracy to commit securities fraud and can be sentenced in January. He faces a most sentence of 5 years in jail. DeMarr was arrested and charged in February and accused by U.S. prosecutors of conspiring to “defraud investor victims by inducing them to put money into their firms, “Begin Choices” and “B2G,” primarily based on materially false and deceptive representations.”
DeMarr, together with two others, were charged by the SEC earlier this 12 months.
As famous by prosecutors, B2G — often known as “Bitcoiin” emerged in early 2018 as a part of the preliminary coin providing craze. B2G was an extension of the Begin Choices scheme supposed to maintain buyers round. “In late January 2018, somewhat than allowing Begin Choices buyers to withdraw cash from their accounts after the requisite time interval, DeMarr and others required buyers to roll over their accounts into an unregistered “preliminary coin providing,” or ICO, of B2G, the second of the 2 fraudulent firms by which DeMarr was concerned.”
Bitcoiin notorious netted the endorsement of Seagal, who went on to settle with the SEC in February 2020. He neither admitted nor denied the findings of the SEC, which alleged on the time that he did not disclose funds he obtained.
Friday’s assertion signifies that the B2G/Begin Choices investigation is ongoing.