SEC Files Case Against Blakstad For Fraudulent Offers In The Crypto Mining Operations

SEC Files Case Against Blakstad For Fraudulent Offers In The Crypto Mining Operations

  • The Securities and Exchange Commission filed a case against Donald G. Blakstad, Xact Holdings corporation, and Energy Sources International Corporation.
  • Blakstad, a resident of San Diego, California, owns and controls executive officer positions in Midcontinental, ESI, and Xact Holdings.
  • The Securities and Exchange Commission filed a case against Blakstad in July 2019, in Manhattan Federal court.

The Securities and Exchange Commission filed a case against Donald G. Blakstad, Xact Holdings corporation, and Energy Sources International Corporation for raising approximately $3.544 million from over 14 investors through a carefully planned fraudulent crypto mining session.

- Advertisement -

Instead of investing, he spent most of the borrowed money for his luxuries, which includes investing in personal entertainment, the purchase of a stake in a city club, buying of a luxury vehicle, and even investing in illicit securities trading.

Blakstad, a resident of San Diego, California, owns and controls executive officer positions in Midcontinental, ESI, and Xact Holdings. He also served as Chairman of the Board of Wind Energy America, Inc, a Minnesota based enterprise.

His fundraising operations began around July 2015 and went on till May 2019 and significant of the funds raised through Midcontinental Petroleum Inc, an oil, gas and other alternative energy resources company, ESI, a purported digital currency mining operation, and Xact Holdings, a Canadian manufacturing company for automobile components.

The defendants made false promises and misleading statements to the investors to buy securities in these companies. Midcontinental company investors told that their money would securely be deposited to fund startups, and remaining costs would be invested in oil, gas, and other alternative energy exploration.

Blakstad and ESI made a series of materially false promises telling that their investments would be used to purchase equipment for cryptocurrency mining operations for ESI. Blakstad, in connection with Xact Holding, said that their funds would be used to buy Canadian Company and the rest of the money to lease pieces of machinery in Houston, Texas.

The Securities and Exchange Commission filed a case against Blakstad in July 2019, in Manhattan Federal court. The commission claimed that Martha Patricia Bustos, a former accountant at Illumina, and her friend Donald Blakstad was engaged in a scheme to trade in advance of Illumina’s confidential revenue data.

Blakstad heavily bribed Bustos with expensive gifts. Blakstad, with the help of inside information, allegedly purchased Illumina securities. He used accounts of business associates to conceal his direct involvement.

How useful was this post?

Click on a thumb to rate it!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Download our App for getting faster updates at your fingertips.

Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners