US SEC Charges California-Based Fraudster With Selling Insider Tips on the Dark Web

Proshare

Sunday, March 21, 2021   /07:38 AM / By US SEC  / Header Image Credit: Forbes

 

The Securities and Exchange Commission charged James Roland Jones of Redondo Beach, California, with perpetrating a fraudulent scheme to sell what he called "insider tips" on the dark web.  The dark web allows users to access the internet anonymously and, as such, has often been used to host websites and marketplaces that support or promote illegal activity.  This is the SEC's first enforcement action involving alleged securities violations on the dark web.

 

The SEC's complaint alleges that, in late 2016 and 2017, Jones accessed various dark web marketplaces, including a website claiming to be an insider trading forum, in search of material, nonpublic information to use for his own securities trading.  According to the complaint, in order to gain access to the insider trading forum, Jones lied about possessing material, nonpublic information.  By doing so, Jones allegedly gained access to the insider trading forum for a short period, but was unsuccessful in obtaining valuable material, nonpublic information. 

 

The complaint further alleges that Jones subsequently devised a scheme to sell purported insider tips to others on the dark web.  The SEC alleges that, in the spring of 2017, Jones offered and sold on one of the dark web marketplaces various purported "insider tips" that he falsely described as material, nonpublic information from the insider trading forum or corporate insiders.   According to the complaint, several users paying in bitcoin purchased these tips and ultimately traded based on the information Jones provided.

 

"This case shows that the SEC can and will pursue securities law violators wherever they operate, even on the dark web," said David L. Peavler, Director of the SEC's Fort Worth Regional Office.  "We have committed staff and technology to pierce the cloak of anonymity these wrongdoers try to throw over their crimes."

 

The SEC's complaint charges Jones with violating the antifraud provisions of the federal securities laws.  Simultaneous with the filing, Jones agreed to a bifurcated settlement that, subject to court approval, permanently enjoins him from further violating these provisions, and reserves the determination of disgorgement and civil penalties for a later date.

 

In a parallel action, the U.S. Attorney's Office for the Middle District of Florida filed criminal charges against Jones. 

 

The SEC's investigation was conducted by David Hirsch, Todd Baker, and Morgan Ward Doran, and supervised by Scott Mascianica and Eric Werner. The litigation will be led by Keefe Bernstein. The SEC appreciates the assistance of the U.S. Attorney's Office for the Middle District of Florida and the Federal Bureau of Investigation.

 

 Proshare Nigeria Pvt. Ltd.

 

Related News - Fraud and Scandal

1.      UBA Plc Vs Vertex Agro Ltd - An Insight into the Court of Appeal Landmark Decision

2.     EFCC Gives Bankers Ultimatum on Asset Declaration, Sets June 1 Deadline

3.     Corporate Anti Bribery and Corruption Compliance Capacity Survey Report

4.     The Anonymous 360-Degree Whistleblower

5.     OANDO Plc Responds to Abuja Court Ruling

6.     OANDO and SEC Legal Battle Continues as OANDO Appeals Court Ruling

7.     OANDO Share Price up 10% off Positive Court Ruling as SEC Reacts to the Court Judgement

8.     Engr Ajudua Secures Judgement as Court Stops SEC from Infringing on OANDO Shareholders Rights

9.     Dantata Success and Profitable Company: Court Adjourns Due to Absence of Fourth Defendant

10.  Police Bust Fake CBN Investment Scheme

 


Proshare Nigeria Pvt. Ltd.



Related News - Regulator

1.      NSE Notifies of Effective Date of Rules on Net Liquid Capital Requirements, Others

2.     SEC Issues Guidance on the Implementation of Sections 60 - 63 of the ISA 2007

3.     NCM 2020: Regulatory Governance in 2020

4.     NSE Proposes Amendments to Rules Governing Transaction with Related Parties

5.     SEC Releases New Rules and Amendments on Collective Investment Schemes

6.     Sundry Amendment to Valuation Report Rules and Regulations in Nigeria Released by SEC

7.     Sundry Amendment to Amount to be Underwritten Rules and Regulations in Nigeria Released by SEC

8.     Investment by CIS in Unlisted Securities Rules and Regulations in Nigeria Released by SEC

9.     Sundry Amendment to Contents of a Trust Deed Rules and Regulations in Nigeria Released by SEC

10.  Payment of Administrative Charges Rules and Regulations in Nigeria Released by SEC

 


 Proshare Nigeria Pvt. Ltd.

 



 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

 Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP