Controversy and Initial Coin Offering
The Securities and Exchange Commission today obtained permanent officer-and-director and penny stock bars against David T. Laurance and Tomahawk Exploration LLC. Laurance is the founder of a company that perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling in California.
Per the SEC, Laurance and Tomahawk endeavored to raise capital through the sale of blockchain-based digital tokens called “Tomahawkcoins.”
However, the SEC found that the Laurance’s promotional materials boasted inflated projections of oil production. Further, Tomahawk’s financial projections were in direct contrast to the company’s internal analysis.
The firm misleadingly suggested that Tomahawk possessed leases for drilling sites when in fact it did not. According to the SEC, Tomahawk’s materials described Laurance as having a “flawless background” without disclosing his prior criminal conviction for his role in other fraudulent securities offerings.