Last Year, Chilivis Grubman attorneys discussed Michael Alan Stollery, the CEO and founder of Titanium Blockchain Infrastructure Services (TBIS), who pled guilty on July 22, 2022 to one count of securities fraud for his role in a cryptocurrency scheme that involved raising approximately $21 million from investors in an initial coin offering (ICO). On March 24, 2023 a judge sentenced Stollery to four years and three months in prison for his role in the cryptocurrency scheme.
According to the Department of Justice (DOJ), the California man admitted to falsifying details around “BARs,” the cryptocurrency coin issued by his firm. Stollery falsified white papers that explained how the underlying technology for the cryptocurrency works, what differentiated it from its competition, and the prospects for the ICO’s profitability.
Stollery also placed fake testimonials on the company’s website and made-up business relationships in his efforts to attract investors. Specifically, according to the complaint, TBIS hyped nonexistent connections with companies like Apple, Boeing, IBM, Microsoft, and Walt Disney. The BAR coin also was never registered with the US Securities and Exchange Commission (SEC), as required by law.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with SEC investigations and related securities litigation. If you need assistance with such a matter, please contact us today.