Jared Rice, CEO of AriseBank arrested by the FBI and facing 120 years in jail

30 Nov, 2018 | Updated: 30 Nov, 2018
by Fifi Arisandi
News
Jared Rice, CEO of AriseBank arrested by the FBI and facing 120 years in jail

Jared Rice, CEO of AriseBank is arrested and currently facing 120 years in prison for defrauding investors out of $4 million of money. 

The CEO of a fraudulent company, Jared Rice is arrested by the Federal Bureau of Investigation (FBI) for allegedly defrauding investors for more than $4 million in a cryptocurrency scheme.

Rice promoted his company, AriseBank as the “first decentralized bank platform” that offered consumers  FDIC-insured accounts, traditional banking services, that included Visa debit and credit card, as well as cryptocurrency services.

In reality, the company was not FDIC insured, didn’t have any partnerships with Visa and had not authorized to perform banking activities in Texas state.

Through the promotional activities, he managed to raise as many as $4 million from investors, all of which he spent for his own personal use, such as hotels, food, clothing, and a family law attorney.

He was also found to be lying about successfully raising $600 million from an ICO within just a few weeks.

Together with his co-founder, Stanley Ford, Rice is also facing charges by the Securities and Exchange Commission (SEC) for fraud and failure to register prior to the ICO.

Furthermore, according to SEC’s complaint file, Rice is on probation as a part of a plea deal for an indictment in 2015 involving theft and tampering government records, while also under felony indictment for assault in Dallas, Texas.

Rice is facing up to 120 years in federal prison if convicted, according to the official release from the Texas attorney's office.

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