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.