SEC accuses couple of illegally selling tokens provided with water
The US Securities and Exchange Commission (SEC) accused a Texas couple of cheating investors for $ 500,000. Funds were raised, including as a result of the illegal sale of TeshuaCoin tokens.
According to the regulator, former pastor Larry Donnell Leonard and his wife, Shuwana Leonard, raised nearly $ 500,000 from over 500 investors through their Teshuater and Teshua Business Group companies.
First, the couple distributed Teshuater alkaline water company stock certificates. Then they decided to sell TeshuaCoin tokens, planning to raise $ 20 million. The defendants claimed that TeshuaCoin is a fully functioning cryptocurrency, the value of which is comparable to the value of bitcoin.
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Moreover, according to them, TeshuaCoin has a “unique” property – it is provided with alkaline water, which is produced by Teshuater. As SEC noted, TeshuaCoin had no collateral. During the sale of tokens, the spouses raised more than $ 170,000 from investors. They also raised money for a nonexistent bitcoin mining business, but spent it on speculative options trading.
According to the regulator, during the fundraising, the Leonard family mainly focused on African Americans. The SEC accuses the spouses of violating the provisions of the laws on securities, as well as fraud, and asks the court to recover the money assigned from them, as well as to impose a fine.
Recall that last month, the Commission accused the Meta 1 Coin cryptocurrency project of conducting a fraudulent ICO and appropriating $ 4.3 million from more than 150 investors.