However, the initial coin offering failed to raise money. Nonetheless, Tomahawk issued tokens through a “bounty program” in exchange for online promotional services.
“Investors should be alert to the risk of old-school frauds, like oil and gas schemes, masquerading as innovative blockchain-based ICOs,” said Robert A. Cohen, chief of the SEC’s cyber unit.
The SEC’s order found that Tomahawk and Laurance violated the registration and antifraud provisions of the federal securities laws. Without admitting or denying the SEC’s findings, Tomahawk and Laurance consented to a cease and desist order and Laurance consented to an officer-and-director bar, penny stock bar and a $30,000 penalty.
Securities and Exchange Commission Resources
The SEC’s Office of Investor Education and Advocacy (OIEA) issued an Investor Alert on Aug. 14 to encourage investors to check the background of anyone selling or offering an investment. The free and simple search tool is located at Investor.gov. In addition, OIEA’s Investor Bulletin about ICOs highlights warning signs of investment fraud including “guaranteed” high investment returns and unlicensed sellers.
