Jared Rice Sr., the former CEO of AriseBank company, and the former operating officer Stanley Ford, did not admit their guilt in conducting the fraudulent ICO. According to U.S. Securities and Exchange Commission (SEC), they both agreed to out-of-court settlement.
The U.S. Federal Court obliged them to pay $2.26 million as a compensation for damage, both $184,76 thousand as a fine, in addition to $68 thousand for expenses. As well as, in addition to pay penalties, they could be sentenced to a life ban from leading the projects or participating in the issuance of securities.
Reportedly, Rice did not have access to FDIC insurance and had no partnership with Visa, to offer banking services in Texas. Moreover, Rice has spent investors’ money for his own personal use, while repeatedly talking to mass media about the “non-existent” advantages of AriseBank. In addition, the police believe that Jared Rice Sr. hid from the investors the fact of his previous conviction for fraud and accusations under other charges.
We want to remind you, that recently SEC have declared their intention to fine social media celebrities who promote scam-ICO in social networks.
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