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SEC Charges 2 With Fraudulent Water-Backed Token Sale

The U.S. Securities and Exchange Commission charged a former Texas pastor and his spouse for allegedly defrauding a whole lot of buyers by means of an alkaline water-backed cryptocurrency, TeshuaCoin.

Larry Donnell and Shuwana Leonard had been charged Friday with defrauding buyers by allegedly stealing practically $500,000 within the sale of bogus inventory certificates and shilling an alkaline water-backed cryptocurrency and a non-existent bitcoin mining operation.

The Leonards are accused of particularly focusing on the African-American group on this alleged scheme. Their firms, Teshua Business Group and Teshuater, are additionally named as defendants.

The Leonards allegedly tried to promote phony inventory of their alkaline water bottle firm, Teshuater, which they stated would yield “short-term investment returns of up to 3,000 percent” based on the criticism. This raised $291,044.07.

Larry Leonard can also be accused of shilling Teshuater’s “fully functioning cryptocurrency,” TeshuaCoin. 

The criticism says he in contrast TeshuaCoin’s usability to bitcoin (BTC) and touted its “unique” attribute – it was backed by Teshuater’s bottled alkaline water. The SEC alleges TeshuaCoin was not really backed by Teshuater. Leonard allegedly raised $170,395.20 out of his goal $20 million by means of this scheme.

Leonard allegedly stole a further $25,544.96 from buyers in Teshuater’s non-existent bitcoin mine. The SEC stated he didn’t disclose the speculative nature of bitcoin mining and by no means really invested the stolen funds within the mine.

Along the best way, the couple is alleged to have stolen $486,984.28 from 500 whole buyers.

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