The Securities and Exchange Commission in the US has filed additional fraud charges against Mr.Raymond Trapani in Manhattan’s federal court. Mr. Trapani is one of the co-founders of Centra Tech Inc.
The Securities and Exchange Commission investigations show that Mr. Trapani and his accomplice’s cooked everything from the company’s bio, business relations with major credit card companies, and misrepresentations about the viability of the company. They also claimed their company had developed cutting edge technology. Furthermore, Trapani and Sharma, one of his accomplices, manipulated the CTR Tokens to generate interest in the company.
Fraud Charges Levied Against Mr. Trapani
Mr. Trapani and his co-founders Robert Farkas and Sohrab “Sam” Sharma are all facing criminal charges in a court. Apart from the anti-fraud case Mr Trapani is facing in Manhattan, he is also facing wire fraud and criminal charges in the Southern District of New York. In the New York’s court, he is facing one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. Three of the charges against Trapani in New York each carry a 20-year jail term.
In the Federal Court, the SEC filed anti-fraud and registration provisions of the federal securities laws against Trapani. The SEC is also seeking the court to ban Mr. Trapani from working in any public office as an officer or a director. Furthermore, the SEC is seeking a permanent injunction against the defendant and return of ill gotten cashfrom any transaction. The SEC is also requesting the court to ban Mr. Trapani from participating in any security exchanges and digital coin offerings in future.
From the investigations, the SEC seems to have incriminating evidence against Mr. Trapani. For instance, text messages between Trapani and his accomplices show Trapani texting Sharma to cook up some false documents. Another text from Sharma is “[w]e gotta get that s[***] removed everywhere and blame freelancers lol.” The commission was able to get evidence from its ongoing investigations. The investigations are still going on. It is likely more charges will be filed in court as more details emerge from the commission’s investigations. SEC seems to be coming hard on ICOs within the US. Recently it sent a subpoena to Riot Blockchain, a Nasdaq Listed firm.