US SEC Reaches Multi-Million Dollar Settlement over PlexCorps ICO

The United States Securities and Exchange Commission (SEC) has come to a multi-million dollar settlement with PlexCorps proprietor Dominique Lacroix, business partner Sabrina Paradis-Royer, and PlexCorps over a purportedly fraudulent initial coin offering (ICO).

The SEC sent its settlement agreement to a U.S. District Court in Brooklyn on August 12. According to the filing, the respondents will collectively be fined about $7 million as part of the settlement agreement.

The SEC concluded that the defendants secured $8,269,218 through the PlexCoin ICO. The agreement further says that the defendants will pay 55% of the funds secured within the ICO—roughly $4.5 million—as the commission decided this sum to be generally what they gained from the offering.

Moreover, the report states that Lacroix and Paradis-Royer will be required to pay $1 million in civil penalties each as well as $348,145.25 for prejudgment interest, bringing the full sum of penalties to about $7 million.

The settlement agreement moreover entails that Lacroix will be banned from acting as an officer or director of a public company, which both Lacroix and Paradis-Royer will be banned from an association in any future digital securities offerings.

As earlier reported, the SEC got an emergency court order in June to freeze Lacroix’s assets as part of ongoing enforcement. At the time, the SEC presumed that Lacroix and Paradis-Royer violated security laws through the PlexCoin ICO, in which they allegedly guaranteed a 1,354% return on investment in under a month.