The third co-founder of Floyd Mayweather’s backed crypto scam Centra Tech, will reportedly plead guilty for duping investors into pouring more than $25 million in the initial coin offering, as we reported previously in our cryptocurrency news here, on DC Forecasts.
The third co-founder of the alleged crypto scam Centra Tech which is backed by celebrities DJ Khaled and Floyd Mayweather plans to plead guilty for duping investors. According to reports, Sohrab “Sam” Sharma, one of the founders of Centra Tech, agreed to change his plea before the trial scheduled for November 2020. His lawyers informed the US District Judge Lorna Schofield in a court fling back on Monday in New York.
Sharma was the only co-founder of the allegedly fraudulent crypto project that hadn’t pled guilty or was even convicted. As per the other reports, Robert Farkas pled guilty back in June while Raymond Trapani was charged with securities and wire fraud in 2018. The trio worked at a luxury car rental company in Miami, dubbed Miami Exotics, before entering the cryptocurrency space. They founded Centra Tech and revealed a debit card that allowed buying digital currencies anywhere accepting Mastercard or Visa.
When advertising the product, the trio made some bold claims. They said that they had a Harvard-educated chief executive officer with more than 20 years of experience, many partnerships including a partnership with Visa and MasterCard as well as licenses to operate in 38 US States. The US DOJ investigated and clamped down on the project which turned out that none of the above is true. The men received charges for deceiving investors into putting funds in falsely advertised ICO which garnered $25 million.
After Farkas pled guilty on two charges, the DOJ ordered a sentence of 87 months and a fine of $250,000 while the sentencing date was scheduled for October. At the time of writing, Sharma’s sentence is undisclosed. One of the few accurate claims made by Centra Tech was that by having celebrities on board, the project will become much more popular. While the duo DJ Khaled and Floyd Mayweather promoted the project, they didn’t disclose if they ever accepted money for it.
The US Securities and Exchange Commission charged both men and Mayweather agreed to pay $300,000 in disgorgement, $300,000 penalty, and $14,775 in prejudgment interest. Khaled paid $50,000 in disgorgement, $100,000 penalty and $2,725 in prejudgment interest.
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