SEC v. John Barksdale; and JonAtina Barksdale, No. LR-25680, Southern District of New York (Mar. 30, 2023) — Press Release
raw: John Barksdale, et al.
John Barksdale, et al., No. 1:22-cv-01933 (S.D.N.Y. Mar. 30, 2023)
summary
Siblings John and JonAtina Barksdale were ordered to pay over $102 million in penalties and disgorgement for orchestrating a massive crypto asset fraud involving Ormeus Coin.
paragraph
The Barksdale siblings orchestrated a fraudulent scheme raising tens of millions of dollars through unregistered offerings of 'Ormeus Coin' and Ormeus Global. They falsely claimed the asset was backed by a $250 million mining operation, despite generating less than $3 million in actual revenue. The court ordered joint and several disgorgement of $46,297,463, plus $10,044,822 in interest, and individual civil penalties of $23,148,731 each.
narrative
John and JonAtina Barksdale orchestrated a massive crypto asset fraud by raising tens of millions of dollars through unregistered offerings of 'Ormeus Coin' and Ormeus Global between 2017 and 2022. To attract investors, they falsely claimed the coin was supported by a $250 million mining operation producing up to $8 million in monthly revenue, despite having abandoned mining in 2019. The SEC's complaint highlighted their use of global roadshows and social media to promote these deceptive claims. A federal court entered a default judgment against the siblings, imposing permanent injunctions against violating antifraud and registration provisions. The financial judgment requires the defendants to pay $46,297,463 in disgorgement and $10,044,822 in prejudgment interest on a joint and several basis. Additionally, each sibling must pay an individual civil penalty of $23,148,731.
Classified crypto-securities(confidence 100%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →
Statutes
Parties
Securities and Exchange CommissionJonAtina L. BarksdaleJohn BarksdaleJonAtina Barksdale
Keywords
john barksdalecrypto assetormeus coinsecuritiesjohnbarksdalebarksdalesormeusminingcryptoassetmarchcoinsecurities exchangecalled ormeus
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 7
- $250.00M $250 million $100M–$1B
- $46.30M $46,297,463 $10M–$100M
- $23.15M $23,148,731 $10M–$100M
- $10.04M $10,044,822 $10M–$100M
- $8.00M $8 million $1M–$10M
- $5.40M $5.4 million $1M–$10M
- $3.00M $3 million $1M–$10M
Entities 10
- person christopher carney
- person john barksdale
- person jonatina barksdale
- person Matthew Reisig
- agency sec investigation
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- company unregistered securities
- court u.s. district court
- organization U.S. District Court
Triples 12
- Securities And Exchange Commission obtains judgment John Barksdale
- John Barksdale raised tens of millions of dollars
- John Barksdale offered unregistered securities
- John Barksdale led production of social media posts
- John Barksdale claimed Ormeus Coin was supported by large crypto asset mining operations
- U.S. District Court entered judgment John and JonAtina Barksdale
- John and JonAtina Barksdale pay $46,297,463 in disgorgement
- John and JonAtina Barksdale pay $10,044,822 in prejudgment interest
- John Barksdale pay $23,148,731 in civil penalty
- JonAtina Barksdale pay $23,148,731 in civil penalty
- Christopher Carney led litigation
- Matthew Reisig conducted SEC investigation
PDF (from attached: judgment)
Text layers
Extracted body text (2,534c)
SEC Obtains Judgment Against Siblings Who Orchestrated Massive Crypto Asset Fraud Litigation Release No. 25680 / March 30, 2023 Securities and Exchange Commission v. John Barksdale, et al., No. 1:22-cv-01933 (LAK) (S.D.N.Y. filed Mar. 8, 2022) On March 15, 2023, the U.S. District Court for the Southern District of New York entered a final judgment against Defendants John and JonAtina (Tina) Barksdale ordering permanent injunctions, disgorgement with interest, and civil penalties. The SEC's complaint alleged that from June 2017 to March 2022, the Barksdales raised tens of millions of dollars through two unregistered fraudulent offerings of securities involving a crypto asset called "Ormeus Coin." In addition, the SEC alleged that from June 2017 to April 2018, through a multi-level marketing business called Ormeus Global, the Barksdales offered and sold subscription packages that included Ormeus Coin. As alleged in the complaint, to promote the offerings, John Barksdale held roadshows around the world while he and his sister, Tina, led the production of social media posts, YouTube videos, press releases, and other promotional materials. The complaint also alleged that the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto asset mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue. As further alleged, in many of these investor communications, the defendants falsely stated that Ormeus Coin had a $250 million crypto asset mining operation and was producing $5.4 million to $8 million per month in mining revenues. The judgment, entered on the basis of default, enjoins the Barksdales from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It further enjoins them from violating Section 5 of the Securities Act by engaging in the unregistered offer or sale of securities. The Barksdales were ordered to pay disgorgement of $46,297,463 on a joint and several basis and prejudgment interest of $10,044,822. The Barksdales were also ordered to each pay a civil penalty of $23,148,731. The litigation was led by Christopher Carney and Matthew Reisig and supervised by Melissa Armstrong. The SEC's investigation that led to this action was conducted by Mr. Reisig, and supervised by Timothy England and Melissa Hodgman. Also see Release 2022-37 (March 8, 2022) Judgment
OCR text (2,534c · html-text · 99% conf)
SEC Obtains Judgment Against Siblings Who Orchestrated Massive Crypto Asset Fraud Litigation Release No. 25680 / March 30, 2023 Securities and Exchange Commission v. John Barksdale, et al., No. 1:22-cv-01933 (LAK) (S.D.N.Y. filed Mar. 8, 2022) On March 15, 2023, the U.S. District Court for the Southern District of New York entered a final judgment against Defendants John and JonAtina (Tina) Barksdale ordering permanent injunctions, disgorgement with interest, and civil penalties. The SEC's complaint alleged that from June 2017 to March 2022, the Barksdales raised tens of millions of dollars through two unregistered fraudulent offerings of securities involving a crypto asset called "Ormeus Coin." In addition, the SEC alleged that from June 2017 to April 2018, through a multi-level marketing business called Ormeus Global, the Barksdales offered and sold subscription packages that included Ormeus Coin. As alleged in the complaint, to promote the offerings, John Barksdale held roadshows around the world while he and his sister, Tina, led the production of social media posts, YouTube videos, press releases, and other promotional materials. The complaint also alleged that the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto asset mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue. As further alleged, in many of these investor communications, the defendants falsely stated that Ormeus Coin had a $250 million crypto asset mining operation and was producing $5.4 million to $8 million per month in mining revenues. The judgment, entered on the basis of default, enjoins the Barksdales from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It further enjoins them from violating Section 5 of the Securities Act by engaging in the unregistered offer or sale of securities. The Barksdales were ordered to pay disgorgement of $46,297,463 on a joint and several basis and prejudgment interest of $10,044,822. The Barksdales were also ordered to each pay a civil penalty of $23,148,731. The litigation was led by Christopher Carney and Matthew Reisig and supervised by Melissa Armstrong. The SEC's investigation that led to this action was conducted by Mr. Reisig, and supervised by Timothy England and Melissa Hodgman. Also see Release 2022-37 (March 8, 2022) Judgment