Boaz Manor, a former hedge-fund convict, his business associate, and two businesses, CG Blockchain Inc. and BCT Inc. SEZC, has been charged by the U.S. Securities and Exchange Commission (SEC) with conspiracy, wire fraud, and securities fraud. These charges come in the face of an allegation that Manor and his associate raised $30 million from hundreds of investors in a fraudulent initial coin offering (ICO), according to a press release on January 17, 2020.
Boaz Manor and Associate Gets Slammed with Charges
Per the press, Boaz Manor, his business associate, and businesses have been charged by the SEC for allegedly raising $30 million from investors in a fraudulent ICO. Manor was convicted in 2010 after pleading guilty to a $100 million Canadian hedge fund fraud but he was released early in 2012.
And in 2015, the 46-year-old entrepreneur had adorned a new name, Shaun MacDonald and taken on a new appearance. Instead of a blond hair and cleanly shaven face, the ex-convict dyed his hair dark and grew a beard, in a bid to disguise is identity and criminal history.
Mcdonald Claims to be an Adviser to Companies He Owns
Furthermore, Mcdonald posed as an adviser to two companies, Blockchain Inc. and BCT Inc. SEZC which are actually owned by him. He claimed his New Jersey-based associate Edith Pardo is the owner of the businesses and required that Pardo advertise Blockchain Terminal. The latter is the cryptocurrency version of Bloomberg Terminal, a subscription-based information service.
Based on this, the SEC is alleging that Mcdonald and Pardo did not register the digital asset securities offered to investors between August 2017 and September 2018. Also, Mcdonald reportedly led investors to believe that 20 hedge funds are investing almost $1 million yearly into his business.
“The complaint alleges that the defendants claimed to have 20 hedge funds testing technology to record transactions on a distributed ledger or blockchain. In reality, the defendants had only sent a prototype to a dozen funds, and none of the funds used it or paid for it” the SEC said.
SEC Charges Manor and Pardo
Accordingly, the duo is being charged for violating the antifraud and securities registration provisions of the federal securities laws. The SEC also seeks to bar “Manor and Pardo from acting as officers or directors of public companies and from participating in future securities offerings.” Earlier this month, the SEC issued a complaint against Donald G. Blakstad for raising $3.5 million from at least 14 investors while offering fraudulent securities in three companies. One