SEC fines fraudulent, oil-related ICO founder with $30,000

15 Aug, 2018
by Joeri Cant
SEC fines fraudulent, oil-related ICO founder with $30,000

The Securities and Exchange Commission permanently barred David T. Laurance, founder of Tomahawk Exploration LLC and creator of the 'Tomahawkcoin', from ever again participating in any offering or promotion of a penny stock.

According to a press release, the U.S. Securities and Exchange Commission (SEC) obtained and issued an officer and director bar, a penny stock bar, and a penalty of $30,000 against David T. Laurance, and his company, Tomahawk Exploration LLC.

The SEC accuses Laurance of attempting to raise $5 million through the sale of the fraudulent blockchain-based digital tokens called Tomahawkcoins, using inflated and misleading promotion materials and false claims about oil drilling licenses.

The ICO offering further portrayed Laurance as having a 'flawless background', even though he has a prior criminal conviction for his role in fraudulent securities offerings.

Robert Cohen, chief of the SEC’s Cyber Unit, said in the press release: “Investors should be alert to the risk of old-school frauds, like oil and gas schemes, masquerading as innovative blockchain-based ICOs”

Neither Laurence or his company have admitted or denied any of the allegations but consented to a cease and desist order and Laurance consented to a $30,000 penalty and the bars.

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