Former Louisiana deputy sheriff and Russian resident Steven Seagal agreed to a Cease and Desist (“C&D”) Order by the SEC, finding violations of the non-touting provisions of Securities Act § 17(b) and imposing civil penalties for acting as a Twitter and Facebook “brand ambassador” for cryptocurrency Bitcoiin2Gen without disclosing it was a paid endorsement.
The Order required Seagal to forego such opportunities for any issuer for three years, disgorge his endorsement fees and pay a civil penalty of a like amount over the coming year.
In 2017, the SEC’s Office of Compliance Inspections and Examinations (“OCIE”) issued a statement warning about celebrities and others using social media to tout initial coin offerings (“ICO”), here.
In 2018, the SEC entered similar C&D Orders against boxer Floyd Mayweather and music producer DJ Khalid for touting ICOs, here.
And here.
The order against Lawman Seagal is here.
PartnerTom Potter is a Partner in the firm's Nashville office and has over 35 years of experience representing business interests in securities and corporate disputes.
Tom represents broker-dealers and investment bankers in disputes ...
