SEC charges two in $124 Million crypto fraud scam including misleading roadshows and fraudulent digital token “Ormeus Coin”

The Securities and Exchange Commission charged John and JonAtina Barksdale with defrauding thousands of retail investors out of more than $124 million through two unregistered fraudulent offerings of securities involving a digital token “Ormeus Coin.” The SEC says they sold Ormeus Coin to a multi-level marketing company. The Complaint says that at roadshows they produced materials and promotional materials and that they said falsely that the Ormeus Coin was supported by one of the largest crypto mining operations in the world, even though the mining operation was abandoned. The Complaint alleged violations of securities laws seeking disgorgement plus civil penalties and in a parallel action, the U.S. Attorneys Office filed criminal charges against John Barksdale.