The Securities and Exchange Commission has asked the U.S. District Court for the Central District of California to enforce a subpoena as part of its probe into an alleged pump-and-dump scheme involving an initial coin offering.

The regulator is seeking documents from Saint James Holding and Investment Company Trust and its trustee, Jeffre James, according to the SEC’s statement. The subpoena comes months after the SEC moved to suspend trading in penny-stock company Cherubim Interests.

The SEC claims Cherubim lied to investors about its SJTCoin, which it said in January was “designed for cooperative living, working and healthier lives and offers extensible diversity in the use of the coin over current coins” such as bitcoin (BTC) “for both financial and societal gain.”

The SEC said Cherubim allegedly “issued false public statements in January 2018” claiming it had a $100 million financing commitment to launch an ICO for St. James Trust. However, “after Cherubim’s stock price and trading volume increased on this news, certain individuals associated with the company may have ‘dumped’ their overvalued Cherubim stock for significant profits.”

This is far from the first time the SEC has been after pump-and-dumpers who try to fool investors with get-rich-quick cryptocurrency schemes, and likely won’t be the last.

ThirtyK Staff
If you would like to contact the ThirtyK News Brief team, please email us at contact@thirtyk.com.