Michael Stollery, the CEO of Titanium Blockchain Infrastructure Services (TBIS), has pleaded guilty
to securities fraud, the U.S. Department of Justice has announced.
Stollery played a role in a scheme that brought in $21 million through a fraudulent initial coin offering (ICO).
Stollery called the scheme a “cryptocurrency investment opportunity.”
According to the DOJ, Stollery lured investors to purchase the firm’s BAR token through a series of false and misleading statements.
The DOJ also says Stollery failed to register TBIS’s offering, as required.
Stollery pleaded guilty to one count of securities fraud.
In addition to running an unregistered ICO, the agency says Stollery admitted using investor funds to pay credit card bills and bills for his Hawaii condominium.
Stollery also admitted to exaggerating the potential profitability of the token, falsifying aspects of TBIS’ white papers, planting fake client testimonials, and claiming a relationship with prominent businesses and the Federal Reserve on the company’s website.
If convicted, Stollery could face up to 20 years in prison. He is scheduled to be sentenced on November 18, 2022.