Daily fraud update: 4th March

ICO lawsuit against US rapper dismissed in court

A lawsuit against a rapper from the US has been dismissed in court by a judge.

The lawsuit against T.I., whose real name is Clifford Harris Jr., had been accused of carrying out securities fraud by selling tokens for FLiK.

This came as part of an initial coin offering (ICO) back in the summer of 2017.

The accusations focused on suggestions that Harris had engaged in what is known as a “pump and dump” scheme, which sees the value of an asset be manipulated by sellers of it in order to increase demand – before the artificial value is removed when many people buy it.

As a result of the accusations, 25 investors in FLiK sued Harris and his business partner Ryan Felton late in 2018.

They claimed to have lost over $2m.

It is understood that the price of the asset went up by 400% in a period of just a few months in 2017.

Harris faced a range of charges, including everything from negligent misrepresentation to state securities fraud.

However, District Judge Charles Pannell announced on Tuesday of this week that he could not uncover the required evidence.

“The plaintiffs have merely alleged that Harris encouraged his Twitter followers to visit the website for the FLiK ICO”, he said.

“They have not provided any statements from Harris about the value of the FLiK tokens. The facts as pleaded do not rise to the level of particularity required”, he added in his remarks.

He also said that those who brought the case against the rapper had not demonstrated that the rapper had broken the relevant law, which is the Georgia Uniform Securities Act.

“The company is not physically located within the boundaries of the state of Georgia. None of the plaintiffs reside in Georgia or allege that they have traveled to Georgia, therefore the acceptances were executed outside of Georgia”, he said.

“The plaintiffs have not alleged that any funds were sent to or from any financial institutions or accounts located in Georgia”, he added.

The overall case is not yet over, however.

Kevin Hart, who is also in the entertainment industry, will also face the court.

Hart was accused in mid-2019 by the plaintiffs of spreading the word about the FLiK ICO on social media.

Actor told to pay six figure sum over promo claims

An American actor has been told that he must pay over $300,000 in connection to a promotion disclosure case.

Steven Seagal, who has starred in several action films including “Above the Law”, was told by US regulator the Securities and Exchange Commission (SEC) that he must pay $330,000.

He was accused of having not disclosed his part in the promotion of a 2018 initial coin offering.

This ICO is understood to have been the Bitcoiin2Gen one.

Chris Lee

Share

Tweet

Safest Forex Brokers 2025

	Broker	Info	Best In	Customer Satisfaction Score
#1	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#2	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#3	* 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008	Global CFD Provider	Best Trading App Visit broker	5
#4	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#5	51% of retail CFD accounts lose money Founded: 2007	Global CFD & FX Broker (*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more)	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#6	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#7	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker	5

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.