The Ontario Securities Commission (OSC) in Canada has approved a settlement agreement with Alex Tapscott and NextBlock Global Limited (NextBlock) in connection with misleading statements they made in offering memoranda provided to prospective investors in 2017.
“We will not tolerate market participants who play fast and loose with the facts when providing offering memoranda to prospective investors, including marketing decks,” said Jeff Kehoe, Director of Enforcement at the OSC. “This dishonest behaviour robs investors of the opportunity to make informed investment decisions and undermines confidence in our markets.”
As a part of the settlement, NextBlock has agreed to pay an administrative penalty of CAD $700,000 plus $100,000 toward the costs of OSC Staff’s investigation. Additionally, Tapscott will pay an administrative penalty of $300,000.
“This settlement reinforces an important message: We will take action to address misleading disclosure and the serious harm it causes to Ontario investors and our markets, even if investors suffer no financial losses,” added Mr. Kehoe.
In settling this matter, Tapscott and NextBlock (the respondents) admit they made misleading statements in slide decks provided to more than 100 prospective investors in a private placement that raised approximately $20 million from 113 accredited investors over a two-month period in June and July 2017. The slide decks were the only materials provided to investors and positioned prominent blockchain figures as NextBlock’s advisors when, in fact, these individuals had not agreed to act as its advisors and had not consented to be included in the slide decks. Of note, one individual had never been approached by Tapscott to act for NextBlock in any capacity.
Tapscott has also agreed to perform community service by delivering ethics presentations to students at Canadian business schools, which will highlight the importance of complying with Ontario securities law. Additionally, Tapscott offered to publish an open letter about the impact and consequences of his misconduct in a national news publication. OSC Staff accepted this offer and included it as a term of the settlement. Together with a significant monetary sanction, these terms serve to deter other market participants from engaging in similar misconduct.
The OSC said they appreciated the assistance of the U.S. Securities and Exchange Commission in the investigation of this matter.
- OneFeather and BlocPal to Provide First Nations with Digital Financial Services - July 23, 2019
- Government Committee Wants Total Ban on Cryptocurrencies in India - July 23, 2019
- Judge Refuses to Dismiss Historic $224 Million SIM Swap Lawsuit by Crypto Luminary Michael Terpin Against Telco Giant AT&T Mobility - July 23, 2019
- RENBDO: First ICO Approved by European Commission – 70 Percent Funding From EU - July 22, 2019
- Chinese Government Blockchain Standardized Certification Received by Lenovo, Alipay, and Aelf - July 22, 2019
- KPMG Teams Up With Tomia, Microsoft And R3 To Create A Near Real-time Settlement Network For Telecom Companies - July 22, 2019
- Blockchain-Based ‘Lunar Registry’ Launched - July 22, 2019
- Daimler launches hardware Car Wallet with RIDDLE&CODE - July 22, 2019
- Ugandan President to Explore use of Blockchain to Tackle Counterfeit Drugs - July 22, 2019
- Blockchain-Based Travala.com Teams Up with Dash For Hotel Booking Payments - July 18, 2019
- SEC And FINRA Approves First Reg A+ Token Offerings - July 18, 2019
- Tokinex Tolken Sale Sells out in 35 Seconds - July 18, 2019
- 18 Organisations Launch The Convergence Alliance To Enable A New Open Data Economy Built On The Decentralized Web - July 9, 2019
- Bittrex Acquires Tradedash - July 3, 2019
- Korea’s Cube Systems Rolls Out New Blockchain eCommerce Platform - July 3, 2019
- Clinlogix Joins ALTEN Calsoft in Launching Blockchain for Clinical Trials - July 3, 2019
- Binance Charity forms alliance with 46 companies to unveil a stablecoin for the alleviation of period poverty - July 3, 2019
- Nestlé Breaks from IBM Food Trust Blockchain Group for New Milk Supply Chain Trial - July 3, 2019
- Tokeny Solutions Digital Asset Platform Gets €5 Million Backing from Euronext - July 3, 2019
- Blockchain Venture Capital Funding Reaches $822 Million in 2019 - July 1, 2019
Also published on Medium.