AriseBank’s CEO Jared Rice Sr. and COO Stanley Ford settled SEC charges for $2,512,733

Alexander Orlov 

Alexander Orlov

12 December 2018,
22:57
AriseBank’s CEO Jared Rice Sr. and COO Stanley Ford settled SEC charges for $2,512,733

An almost one-year-old investigation of an allegedly fraudulent initial coin offering (ICO) of AriseBank that was halted by the Securities and Exchange Commission (SEC) on January 30, 2018, has ended with a settlement resulting.

According to SEC press-release CEO Jared Rice Sr. and COO Stanley Ford “were accused of offering and selling unregistered investments in their purported “AriseCoin” cryptocurrency by depicting AriseBank as a first-of-its-kind decentralized bank offering a variety of services to retail investors.”

The nature of the settlement executed in federal court includes:

  • Payment of $2,259,543 in disgorgement

  • Payment of $68,423 in prejudgment interest

  • Payment of $184,767 penalty

  • Lifetime bar from serving as officers and directors of public companies and participating in digital securities offerings

  • Permanent prohibitions against violating the antifraud and registration provisions of the federal securities laws

The accused AriseBank’s executives agreed to the settlement terms without admitting or denying the allegations.

 

FBI is not happy with AriseBank

On January 26, 2018 Texas Department of Banking Commissioner issued an independent cease-and-desist order relating to AriseBank. The order states that AriseBank violated Texas Finance Code Chapter 31 by using the term “bank” in its name and marketing materials, not being authorized to engage in the business of banking.

Also, on November 20, 2018 CEO Jared Rice Sr. was arrested by FBI according to the press-release, issued by Department of Justice. The nature of accusation was that Rice claimed that AriseBank could offer consumers FDIC-insured accounts and Visa-brand credit and debit cards. In reality, AriseBank was not FDIC insured, had no partnership with Visa and wasn’t authorized to conduct any banking business in Texas.

This is one of the latest actions against crimes in crypto industry executed by The US regulators and authorities. Last week CoinAplpha Advisors was fined $50,000 by SEC, on November 29, Famous boxer, Floyd Mayweather and music producer, DJ Khaled settled to pay almost $770,000.

 

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