A Hawaiian citizen has been prosecuted by the U.S. Securities and Exchange Commission for making a misleading statement about how his fraudulent securities would become the "first publicly traded security fund to convert to a cryptocurrency." The man pushed the security, according to the Commission, in order to raise its price and increase the value of his portfolio.
False documents were used to commit the fraud.
Jeremy Koski, a citizen of Hawaii, has been charged by the U.S. Securities and Exchange Commission (SEC) with forging and distributing false documents about a fictitious security that he claimed would become the "first publicly traded security fund to convert to a cryptocurrency." In addition, the SEC charged Koski with making a misleading statement that the conversion would "allow the fund to recover the face value of $25 as it opens up to a new world of digitized currency."
In a news statement on September 1, the SEC stated that it had since filed a formal charge against Koski for "violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5." According to the SEC, it is requesting a permanent injunction to prevent such violations.
The SEC claimed that Koski used online discussion boards and various nicknames to advertise the false documents, which served as their explanation for how the fraud was carried out. Koski is a resident of Hawaii. According to the Commission, Koski wanted to increase the value of his portfolio as well as the price of the asset with the ticker COTRP.
The SEC asserted that the price of the asset increased by 75% after Koski announced in May 2021 that the "JCP debentures would be redeemed early at their full value." Koski was aware that his comments were untrue, according to the SEC.
What do you think about this story? Comment below with your thoughts and let us know what you think.