According to the US Department of Justice (DOJ) announcement, Michael Stollery touted this crypto project as a crypto investment opportunity, then lured investors to buy the company’s BAR token with a series of false and misleading claims. The DOJ also added that Stollery failed to register the TBIS bid as required by regulation.
“Stollery has not registered an ICO in connection with a TBIS cryptocurrency investment offer with the US Securities and Exchange Commission (SEC), and does not have a valid exemption from SEC registration requirements”.
In its 2018 complaint, the SEC said Stollery raised up to $21 million in Ethereum, Bitcoin, and cash from dozens of investors in at least 18 states and abroad. In addition to launching an unregistered ICO, the agency also claimed Stollery admitted to taking investor funds to pay credit card bills and buy an apartment in Hawaii.
Stollery has also exaggerated the potential returns of BAR tokens, falsified aspects of the TBIS whitepaper, planted false customer testimonials and fake relationships with well-known businesses and the Federal Reserve (Fed) on the company’s website. Stollery could face up to 20 years in prison on these charges. He is expected to be sentenced on November 18, 2022.
US federal regulators seem to be increasingly active in the crypto space to “hunt” fraudulent individuals and organizations. A few days ago, the US Department of Justice and the SEC filed separate charges against Ishan Wahi, Former Coinbase Product Manager, and two others for insider trading. Coinbase was then “attacked” by both the SEC and CFTC for allegedly listing 9 tokens as securities.
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