The SEC has sued John Barksdale and his sister JonAtina “Tina” Barksdale over Ormeus Global fraud.
The regulator alleges the Barkdales stole over $124 million through Ormeus Global’s ORME cryptocurrency.
BehindMLM
reviewed and reported on Ormeus Global’s securities fraud
in June 2017.
The
SEC’s complaint
details fraud by the Barkdales from June 2017 to April 2018.
Defendants John and Tina Barksdale fraudulently offered and sold unregistered securities in the form of subscription packages in Ormeus Global, S.A.
Also starting in June 2017 … Defendants fraudulently offered and sold unregistered securities in the form of the digital asset Ormeus Coin.
Neither the subscription packages nor Ormeus Coin was ever registered with the Commission as a security – although they should have been under securities laws.
John Barksdale is a US citizen formerly residing Thailand. He has been arrested in
parallel criminal proceedings
.
Barksdale is believed to have been or be in the process of being extradited back to the US.
Tina Barksdale is a US citizen residing in Hong Kong.
She is the sister of John Barksdale and with him controlled the operations of Ormeus Global and Ormeus Coin.
Tina Barksdale worked in Ormeus’ Hong Kong office, was responsible for coordinating the marketing videos the company used to fashion itself as a legitimate company, and managed bank accounts for the business.
Of the two John Barksdale was very much the face of Ormeus Global. I hadn’t heard of Tina Barksdale until covering the SEC’s proceedings today.
Ormeus Global’s original Ponzi ruse was the typical trading bot model.
Through their “B2x89” bot, Ormeus Global pitched a 160% ROI.
Contrary to … representations … (Ormeus Global’s) trading system was not a proven system and was still in development for months after Ormeus Global started selling subscription packages.
As a result Ormeus Global began pushing crypto mining, another common Ponzi ruse.
Defendants represented to investors that Ormeus Coin would support its value by holding other digital assets earned through its digital asset mining operation.
They told investors that Ormeus Coin would permanently place 40% of the profits of the digital asset mining business into digital asset wallets known as the “Ormeus Reserve Vault”, or “ORV”, to support the value of Ormeus Coin, which also made the Ormeus Global packages more attractive to investors.
While Ormeus Global did in fact engage in mining, it was nowhere near enough to sustain the Ponzi scheme.
Ormeus Coin mined digital assets for less than a year., from February 2018 until January 2019.
In that time, the entire operation generated less than $3 million in total revenue.
Nevertheless, Defendants misrepresented at various times that the operation was generating $5.4 million to $8 million revenue each month.
Defendants also misrepresented that Ormeus Coin has $30 million, $35 million, and $250 million worth of digital asset mining equipment at a time wh
🤖 Quick Answer
What is the SEC lawsuit against John and Tina Barksdale regarding Ormeus Global?The SEC sued John Barksdale and his sister JonAtina Barksdale for allegedly stealing over $124 million through Ormeus Global's cryptocurrency scheme. Between June 2017 and April 2018, they fraudulently offered unregistered securities including subscription packages and Ormeus Coin, which should have been registered with the Commission.
What unregistered securities did the Barksdale defendants offer through Ormeus Global?
The defendants fraudulently offered two types of unregistered securities: subscription packages in Ormeus Global, S.A., and the digital asset Ormeus Coin. Neither security was registered with the SEC despite legal requirements, constituting a violation of federal securities regulations during the 2017-2018 period.
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