SEC broadcasts settlement of expenses towards Coinme, Neil Bergquist

The Securities and Trade Fee (SEC) right this moment introduced settled expenses towards Seattle-based firm Coinme Inc., its subsidiary Up, World SEZC, and the Chief Govt Officer of each entities, Neil Bergquist, for conducting unregistered provides and gross sales of securities within the type of a crypto asset referred to as “UpToken,” and towards Bergquist and Up World for making false and deceptive statements in regards to the demand for UpToken and the quantity raised within the providing.

In line with the order, from October 16, 2017 to December 15, 2017, Coinme, Up World, and Bergquist engaged in unregistered provides and gross sales of crypto asset securities throughout which, amongst different issues, they marketed the monetary profit that UpToken traders would reap from Coinme buying UpToken within the secondary market after the ICO.

The order additionally finds that, unbeknownst to UpToken traders, Bergquist and Up World took steps earlier than and all through the ICO to acquire an UpToken provide that will considerably scale back Coinme’s must buy UpToken after the ICO, and likewise knowingly or recklessly publicly inflated quantities raised within the ICO.

The SEC’s order finds that Coinme, Up World, and Bergquist violated Sections 5(a) and 5(c) of the Securities Act of 1933, and that Bergquist and Up World violated Part 17(a) of the Securities Act and Part 10(b) of the Securities Trade Act of 1934 and Rule 10b-5 thereunder.

Coinme, Up World, and Bergquist agreed, with out admitting or denying the SEC’s findings, to settle the fees, stop and desist from future violations of these provisions, and adjust to sure undertakings. As well as, Up World agreed to pay a $3,520,000 penalty, for which Coinme is liable on a joint-and-several foundation; Coinme agreed to pay a separate $250,000 penalty; and Bergquist agreed to pay a penalty of $150,000.

The SEC order additionally bars Bergquist, for a interval of three years, from appearing as an officer or director of a public firm.