The U.S. Securities and Exchange Commission (SEC) has taken action against an oil and gas exploration company and its founder who “perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling in California.” The token sale failed to raise money but the tokens were issued as part of a bounty program, which the SEC considers securities.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
SEC Took Action
The SEC announced Tuesday that it has taken action against David Thompson Laurance and the oil and gas exploration company he founded, Tomahawk Exploration LLC. Laurance attempted to raise money by issuing digital tokens, tomahawkcoins (TOM).
Founded by Laurance in 2010, Tomahawk “engaged in an offering of Tomahawk securities that constituted penny stock,” the SEC described. The 76-year-old California resident is the sole managing member of Tomahawk.
“The SEC’s order finds that Tomahawk and Laurance violated the registration and antifraud provisions of the federal securities laws,” the Commission detailed, adding:
Without admitting or denying the SEC’s findings, Tomahawk and Laurance consented to a cease and desist order and Laurance consented to an officer and director bar, penny stock bar, and a $30,000 penalty.
The SEC has obtained a permanent officer and director bar against Laurance which prevents him from serving as an officer or a director of any SEC-reporting company.
The penny stock bar prohibits him from owning a penny stock in his own account as well as engaged in any activities related to an offering of a penny stock including acting as a promoter, finder, consultant, agent, broker, dealer, or issuer.
The Founder and his Company
According to the SEC, Laurance “perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling
