The agency noted that it obtained officer-and-director and penny-stock bars against David Laurance and his company, Tomahawk Exploration LLC. Tomahawk, the SEC alleges,sought-afterto liftfunds through a “Tomahawk coin” token sale thatuseddishonorablepromotingmaterials and false claimsregardingoil drilling licenses.
As per the SEC’s report on this issue, Tomahawk coinis allegedto have been soldmaking a false promise that tokenholderswould beable toconvert their Tomahawk coins into equity from the anticipated oilproduction profitsand secondary from thecommerceof the tokens.
As per a recent statement issued by the authority yesterday, Laurance has neither admitted nor denied the SEC’s allegationshowever heand hiscompany havein agreementto the barsbesidea penalty of $30,000 USD.
The officer-and-director bar prevents Laurance from serving in either capacity in a public company,whereasthe penny stock bar prevents him fromcommerceor owning penny stocks.eachprohibitionssquare measure permanent,consistent withthe SEC.
The Cyber Unit head ‘ Robert Cohen’ aforesaid in a statement that:
“Investorsought tobeaware ofthe chanceof old-school frauds, like oil and gas schemes, masquerading as innovative blockchain-based ICOs,”
Notably, the SEC order indicates that the agency iscurrentlyscrutinizing token distributions forpromoting functions, airdrops (or free distribution of tokens)representsecurities sales.
As the agency noted:
“…Tomahawk issued tokens asa part ofthe Bounty Programto come up withinterestwithin itsICO project,that benefited Tomahawk.”