The CEO of Titanium Blockchain Infrastructure Services Inc. (TBIS) has pleaded guilty to participating in a $21 million cryptocurrency fraud scheme, according to the Department of Justice (DOJ).
In a Press release On Monday, the DOJ said CEO Michael Alan Stollery pleaded guilty to one count of securities fraud.
According to court documents, Stollery touted his crypto company as a cryptocurrency investment opportunity, urging investors to buy BAR, TBIS’ type of coin token service, through a series of misrepresentations. The judge said Stollery had not registered his company’s initial coin offering with the Securities and Exchange Commission and did not have a valid exemption.
Stollery also told authorities he falsified his company’s white papers, which give investors an explanation of the cryptocurrency investment offering and the purpose and technology behind it. .
Justice also said Stollery posted false customer testimonials on his company’s website and falsely claimed he had good relationships with the Federal Reserve and a dozen top companies.
He said he admitted to mixing money from investors with personal funds used for reasons unrelated to his business, including credit card payments and paying bills for his condominium in Hawaii.
Stollery, 54, faces up to 20 years in prison and is expected to be sentenced Nov. 18.