Brewer, Pritchard & Buckley, P.C.
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Digital currency businessman arrested for securities fraud

Business opportunities are difficult for many Texans to turn away from and part of that is the securities industry. With new products and advancements seemingly coming about every day, there is always a chance and a desire to be involved in the next big thing or a lucrative start-up. However, what many do not realize is that the difficult nature of the securities business can lead to violating - wittingly or not - the federal securities laws. When a person is charged with securities fraud, a mistake they frequently make is thinking that the penalties will not be severe or it is treated less seriously than crimes involving overt theft or violence. When charged with securities offenses, having legal help is imperative to formulate a defense.

A relatively new entity is digital currency. A Texas man was arrested after he was alleged to have cheated investors for more than $4.2 million. The man, 30, is accused of securities fraud and wire fraud. He claimed to have owned a bank platform that was the first of its kind in being decentralized. The investigation says he promised investors that his business gave them banking services and accounts that were protected by the government. The company was not legally able to function in the state, did not have FDIC insurance, and there were no relationships with the banks.

He is also said to have been untruthful about having raised $600 million in digital currency. He had previously issued a guilty plea for felonies in an internet business. His digital currency was used to get holders of other types of digital currencies to trade with him. In the indictment, his business is not a bank as he stated it was. He spent the money on a variety of items including hotels, a girlfriend, for family legal services and more.

People who have lost money investing will want justice for illegal behaviors that people in the financial industry have committed. There are many ways for people to find themselves in trouble with the Securities and Exchange Commission and be confronted with major criminal allegations with significant jail time and fines possible. Despite the negative perception surrounding securities fraud, allegations are not automatically indicative of guilt. Perhaps mistakes were made and there are alternatives available to avoid the harshest penalties. A law firm that has extensive experience in helping those accused of securities fraud can provide a defense and should be called for help.

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Important notice: Thomas C. Pritchard is a retired member of Brewer & Pritchard, P.C. Mr. Pritchard's address is 800 Bering Drive, Suite 201, Houston, Texas 77057. Brewer & Pritchard, P.C and Thomas C. Pritchard have shared the cost of this advertisement.

Referrals: Please note that as a general matter, Brewer & Pritchard, P.C. does not handle non-litigation matters. Brewer & Pritchard, P.C. refers all its non-litigation or "transactional" matters to Thomas C. Pritchard, who is a retired member of the firm. Thomas C. Pritchard does not handle any litigation cases and as a general matter, he refers all litigation cases to Brewer & Pritchard, P.C. Brewer & Pritchard, P.C. and Thomas C. Pritchard have no other relationship to each other and do not share fees if or when a case or matter is referred by one to the other.

Not board certified: None of Brewer & Pritchard, P.C., J. Mark Brewer nor Thomas C. Pritchard is certified by the Texas Board of Legal Specialization.

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