One of the top stories in the business world recently centered on cybersecurity entrepreneur John McAfee. He suddenly finds himself in serious trouble with the US Security and Exchange Commission on various charges. Also in the works is extradition from Spain by the US Department of Justice in a separate matter. That one involves tax evasion and failure to file tax returns.

Does The SEC Really Go After John McAfee For Paid ICO Endorsements?

The former Bitcoin (BTC) market bull has been charged with violating antifraud provisions of the federal securities law. He is also charged with violating anti-touting provisions as part of an ICO shilling scheme.

About An ICO Or Initial Coin Offering

An ICO is an Initial Coin Offering tied to cryptocurrency. They have been used to raise capital for various expansion projects by crypto-based companies.

Apparently, the SEC claims that McAfee promoted multiple ICO’s on Twitter. He contends he acted as an independent spokesperson with no financial interest or ties to the ICO. In reality, it is alleged that he was paid millions for his promotional role. The payments were in the form of digital assets.

Earlier, he denied receiving any payments from the ICO for his promotional stance. This includes lying to potential investors. He also lied when he told investors he had personally invested his own money in certain ICO’s.

Also charged in this matter by the SEC was Jimmy Watson Jr. He is McAfee’s personal bodyguard. He allegedly helped to negotiate the promotional deals. He aided in the process of cashing out digital payments. Reports state that Watson received $316,000 for his role in the shilling scheme.

The two are also charged in a separate pumping and dumping scheme. This time, they tried to profit from touting a digital asset security.

Kristina Littman is the Cyber Unit Chief at the SEC. She stated in a recent press release that:

“Potential investors in digital asset securities are entitled to know if promoters were compensated by the issuers of those securities.” The SEC’s stance is “McAfee and Watson profited. Investors were left holding digital assets that are now essentially worthless.”

It has been estimated that McAfee made close to $23.2 million in secret compensation for his role in the ICO shilling scheme.

Turning to McAfee’s issue with the DoJ, the tax issues span four years. From 2014 to 2018, this department alleges he failed to file tax returns covering millions in income. This was from:

1. Promoting cryptocurrencies
2. Consulting work
3. Speaking engagements
4. Selling the rights to his life story

McAfee is also accused of evading taxes by concealing assets in other people’s names. This includes real estate, a vehicle and a luxury yacht.

He now faces five years in jail for every count of tax evasion. Add on one more year for each willful failure to file a tax return. The SEC wants the money gained from the shilling scheme plus civil penalties. It also wants McAfee banned from holding any title at a public company. He is currently being detained by authorities in Spain

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SEC Goes After John McAfee For Paid ICO Endorsements?

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Is The Securities Exchange Commission (SEC) Going After John McAfee For Paid Initial Coin Offering (ICO) Endorsements? Discover The Truth About This Matter Inside Here now!

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Vladimir

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ArmyOfBitcoin.com

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