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Jared Rice Sr., founder of the crypto bank AriseBank, pleaded guilty to a head of securities fraud Wednesday in federal court
The Dallas News reported Thursday that Rice, who was arrested last year, admitted to having cheated $ 4.2 million from investors selling AriseCoin tokens and promising that customers would receive Visa credit cards. and accounts insured by the Federal Deposit Insurance Corporation (FDIC).
Neither the cards nor the FDIC accounts existed, although Rice accepted both crypto and fiat at its ICO, which the US Securities and Exchange Commission (SEC) discontinued in January 2018.
According to its plea agreement, the US government and Rice agreed that the accused should spend 60 months in prison. He faces a maximum penalty of 20 years, a fine of $ 5 million, three years of probation, restitution and confiscation.
The plea agreement depends on Federal Judge Ed Kinkeade of the US District Court of the Northern District of Texas, who signed the 60-month sentence.
The FBI arrested Rice last November, after the US District Attorney's Office accused him of three counts of securities fraud and three counts of wire fraud.
Rice has already settled a civil suit with the SEC, paying $ 2.7 million in restitution and another fine of about $ 190,000. His former director of operations, Stanley Ford, settled similar charges with an identical fine.
Neither of them admitted or denied the allegations made by the SEC, although both parties agreed to be barred for life from being officers or directors of public companies, as well as from not participate in the offer of numerical values.
Image hammer via Shutterstock
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