SEC: ‘Predominant strategist’ in $27 million ‘lucrative market manipulation’ case plans to settle
Florida businessman Barry Honig plans to settle charges introduced by the Securities and Exchange Commission, the SEC acknowledged, in what it called “classic pump-and-dump schemes” when the costs had been equipped. The SEC filed a motion on Friday afternoon inquiring for an extension of time.
“This week, Defendant Honig and the Commission workers reached an agreement in idea to settle the Commission’s claims for liability,” the motion acknowledged.
Honig’s company GRQ used to be furthermore charged and is included within the proposed settlement. The extension of time used to be requested to enable the SEC to fabricate “approval of a settlement in idea,” in accordance with the latest filing.
Barry Honig, a challenge capitalist and micro-cap investor, used to be as soon as one in all the largest investors in Insurrection Blockchain.
No other important ingredients about the aptitude settlement had been given.
The SEC charged 19 others alongside with Honig. The SEC already settled in plump or in section with 9 defendants, alongside side Miami biotech billionaire Phillip Frost, in accordance with the filing.
“Honig used to be the fundamental strategist, calling upon other Defendants to, among other issues, build or sell inventory, put together for the issuance of shares, negotiate transactions, and/or steal in promotional process” within the $27 million schemes, in accordance with the SEC’s amended complaint, filed in March.
The SEC declined to commentary past its most modern motion.
Eli Richlin, one in all the attorneys for Honig, acknowledged he had no commentary when reached by mobile phone.
Honig used to be as soon as the largest shareholder of Insurrection Blockchain, the cryptocurrency company whose inventory skyrocketed after it modified its name from Bioptix. He used to be charged by the SEC alongside with John O’Rourke, the old CEO of Insurrection Blockchain, who left Insurrection within the wake of the costs.
The SEC case is unrelated to Insurrection Blockchain.
O’Rourke remains a defendant within the case and takes no situation on the extension of time, in accordance with the SEC’s motion.
Attorneys for O’Rourke didn’t straight return CNBC’s demand for commentary.
A CNBC investigation in February 2018 learned a group of crimson flags at Insurrection Blockchain, alongside side annual meetings that had been postponed at the final minute, gross sales of inventory by company insiders soon after the company’s name swap, dilutive fragment issuances on favorable terms to great investors, complex SEC filings and evidence that a fundamental shareholder used to be selling shares whereas all americans else used to be buying.
“We’ve got made predominant inroads in constructing a diversified portfolio of investments and to begin securing digital assets,” O’Rourke acknowledged in a letter to shareholders the day the CNBC investigation aired.
As bitcoin’s keep hit yarn highs in behind December 2017, Insurrection used to be making files on a daily basis. The company’s inventory shot from $8 a fraction to more than $40 as investors chased the vogue of all issues crypto.