The U.S. Securities and Exchange Commission revealed in a litigation release dated June 20 another emergency court order for an asset freeze over Dominic Lacroix, who the agency describes as a “recidivist Quebec securities law violator.”
Blokt reported, in December 2017, that the agency’s newly formed Cyber Unit obtained the first emergency asset freeze to halt PlexCorps ICO, which it described as “fraudulent” and a “full-fledged cyber scam.” The ICO had already raised up to $15 million from investors up to that point by advertising a 1,354% profit in under a month. Both Dominic Lacroix and his partner, Sabrina Paradis-Royer, were charged with securities fraud.
The latest asset freeze in June reveals that Dominic Lacroix had been using secret accounts, including an account that he controlled but was in his brother’s name, to move cryptocurrencies obtained from investors during the aforementioned ICO.
Aside from the SEC’s lawsuit, Dominic Lacroix was also sentenced to two months in jail plus a $110,000 fine by the Quebec Superior Court. The charge for which he was found guilty of was for contempt of court. It was handed out after the court determined that, despite orders by the financial regulator AMF that PlexCorp stops soliciting investors, it still continued to do so.
A Repeat Securities Law Offender
The PlexCorps ICO saga was hardly the first time that Dominic Lacroix has found himself in trouble with the law over alleged securities law violations. Back in 2013, he was handed a $25,000 fine by a Quebec court over six charges of misrepresentations, illegal practices, and illegal distribution. This was in relation to his role at his previous company Micro-Prêts Inc., which is a consumer loan company that was accused of illegally acting as a securities dealer. Authorities also ordered that the company and its website be shut down.
PlexCoin Website Continues to be Active
As of the time of publication, the PlexCoin website continues to be operational despite actions by the SEC, the AMF, and the Quebec Superior Court. A quick perusal of the website reveals vague language espousing how PlexCoin is the next decentralized cryptocurrency that is faster and more efficient than Bitcoin. A quote from the website, which has no whitepaper, says:
“The PlexCoin’s new revolutionary operating structure is safer and much easier to use than any other current cryptocurrency. This implies a huge success for PlexCoin as soon as it launches.”
PlexCorps’ Facebook group also continues to be somewhat active, with the latest post dated April 24 defending the viability of the project and that “no one from the project is currently in jail.” The post claims that the project is trying to return the funds from U.S. and Quebec investors, but the SEC and AMF have not agreed to their proposal. With the latest asset freeze, it appears that the agency has no interest in working out a deal with LaCroix.