- Co-founder of the fraudulent coin offering company, Sohrab Sam Sharma, has decided to plead for his guilt of defrauding investors for $25 million.
- Robert Farkas, an associate of Sharma, also convicted of devising a fraudulent plan to commit securities and wire frauds.
- After Robert pleaded guilty, Sohrab Sharma also announced changing his statements in the court of law.
The co-founder of fraudulent coin offering company, Sohrab Sam Sharma, has decided to plead for his guilt of defrauding cryptocurrency investors for $25 million. Sohrab Sharma is the 3rd co-founder behind the Centra Tech ICO scam to be apprehended and face prison.
Robert Farkas, an associate of Sharma, also convicted of devising a fraudulent plan to commit securities and wire frauds. According to sources, this fraud took place on 16th June. Now Robert Farkas is imprisoned for a massive period of 87 months and is liable to pay a fine of $250,000. After he pleaded guilty, Sohrab Sharma also announced changing his statements in the court of law.
Sohrab Sharma’s lawyer has informed the US District Judge, Lorna G. Scholfield, that Sharma is ready to change his statement i.e., prepared to plead guilty. Following this big, major announcement, Sharma may avoid the trail in November.
Scamming history – Sharma not the First One
Before Sohrab Sam Sharma, two other co-founder’s of the same company, Centra Tech, plead their guilty conscience in the court for committing fraud. As mentioned before, the second and the latest one was Robert Farkas, who changed his plea only last month.
Before these two, Raymond Trapani also pleaded guilty. He was also one of the masterminds and an operator of the ICO. All three apprehended by the US Department of Justice (DOJ) in April 2018. They apprehended on accounts of lying to investors about having a fictitious CEO at Centra Tech by the name of Michael Edwards.
Not only this, but the three also made misleading claims about partnering with major firms that included Visa.
Details of the Hyped ICO
Sohrab Sharma, Robert Farkas, and Raymond Trapani managed to raise $25 million via Initial Coin Offerings (ICO), between a period of July 2017 and March 2018. They falsely promised the investors that they would be launching a crypto debit card called ‘Centra Card’. They claimed that this card would enable users to spend in Cryptocurrencies at any outlet accepting Visa and MasterCard.
To increase the hype of the token sale, the three forged documents which stated a licensing agreement from Visa, MasterCard, and Bancorp. However, the promotion increased to a large extent when this project endorsed by the famous boxing star Floyd Mayweather and rapper DJ Khaled. The trial for the third co-founder’s case scheduled for November.