PlexCoin (PLX) Hit With Fresh Evidence of Fraud from the SEC

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The United States Securities and Exchange Commission (SEC) has submitted a collection of new documents further supporting its position on PlexCoin.

In December last year, the SEC filed a complaint against Canadian company PlexCorps, the organization behind the PlexCoin ICO, claiming it misappropriated investor funds. The complaint requested that all company assets are frozen temporarily and the SEC be given access to relevant documents which could assist in the investigation.

The SEC alleged that statements made by the company on websites and in its whitepaper were false and misleading, including claims that the company was based in Singapore and employed experts worldwide. It was discovered the company founder, Dominic Lacroix, was guilty of previous securities fraud in Quebec, Canada. During the final four months of 2017, PlexCorps allegedly obtained $15 million in funding by falsely marketing it’s services to U.S. and Canadian investors.

In June this year, the SEC obtained an emergency court order to again freeze Dominic Lacroix’s assets, claiming he was using secret accounts, including one in his brother’s name.

Now the case continues with fresh evidence obtained by the SEC that reveals Lacroix and business partner Sabrina Paradis-Royer spent thousands of dollars on Facebook advertisements targeted at U.S. citizens. The advertisements claimed PlexCoin was a legitimate investment opportunity which would provide decent returns. In addition, the SEC claim Lacroix and Paradis-Royer misappropriated funds for personal use.

The defendants have not refuted the claims but insist that PlexCoin is a currency and not a security and therefore they are not guilty of securities fraud. The New York Eastern district court has rejected this defense.

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