Ronald R. Deering, an Idaho resident, has agreed to settle charges that he swindled at least $267,075 through a cryptocurrency Ponzi scheme called Forsage. The settlement, approved December 13th, makes Deering the final defendant to capitulate in the SEC's case against seven promoters of the sprawling fraud.
Deering won't be able to claim he didn't violate federal securities laws. The settlement bars him from promoting pyramid schemes and cryptocurrency investments ever again. He must disgorge his illegal gains, pay backdated interest to June 2020, and hand over a civil penalty—though the SEC and Deering have yet to agree on exact dollar amounts. The agency has until October 13th, 2023 to file a motion requesting the payment details.
The settlement brings relative closure to one thread of a much larger unraveling. Forsage itself, which bilked consumers out of more than $300 million, was masterminded by Sergei Okhotnikov, who operates from Georgia and has yet to face consequences. He's now running a rebranded version called Meta Force, continuing to defraud investors while remaining at large.
Two other defendants—Lola Ferrari and Sergey Maslakov, both based outside the U.S.—were served notice through publication. The SEC has already filed for default judgment against them.
That leaves Mikhail Sergeev, believed to be in Russia, as the only defendant the SEC hasn't managed to serve. In a status report filed December 9th, the SEC acknowledged it's still exploring service options and said it would update the court later.
Okhotnikov, the ringleader, isn't going quietly. He hired lawyers and filed a motion to dismiss the SEC case on November 22nd. The SEC fired back with its opposition on December 29th. No ruling has come down yet.
If the judge rejects Okhotnikov's motion and he refuses to settle, the SEC is bracing for a protracted fight. Proceedings could stretch into 2024 or even 2025, the agency estimates. For now, Deering's settlement is the only concrete victory in what the SEC acknowledges could become a years-long legal battle against a fugitive operator who's simply repackaged his scheme under a new name.
🤖 Quick Answer
What was Ronald R. Deering charged with by the SEC?Ronald R. Deering, an Idaho resident, was charged with defrauding at least $267,075 through Forsage, a cryptocurrency Ponzi scheme. He was one of seven promoters prosecuted in the SEC's case against this sprawling fraudulent operation involving illegal pyramid scheme activities.
What are the terms of Deering's settlement with the SEC?
Deering's settlement, approved December 13th, permanently bars him from promoting pyramid schemes and cryptocurrency investments. He must disgorge illegal gains, pay backdated interest from June 2020, and remit a civil penalty amount to be determined by October 13th, 2023.
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