In the second scheme, DENINO, KIMBERELY, MOISES and PEPPER also used DENINO'S YouTube Account with 750K followers and his Discord following with 86K followers to publicly tout fundraising events called “initial coin offerings” (“ICOs”) in which startup businesses (“ICO issuers”) issued and sold digital tokens qualifying as securities to the investing public, without disclosing and, in fact, concealing that the ICO issuers were compensating DENINO for his promotional efforts with a substantial portion of the funds raised from ICO investors. As the United States Securities and Exchange Commission had publicly warned, and as DENINO and PEPPER well knew, the federal securities laws required them to disclose any compensation paid by ICO issuers for touting securities offerings styled as ICOs. From approximately on or about July 11, 2021 through on or about January, DENINO, KIMBERELY, MOISES AND PEPPER collectively earned more than $1.2 million in undisclosed compensation that they took steps to affirmatively hide from ICO investors. In each instance, DENINO and PEPPER failed to disclose to ICO investors that the ICO Issuers were paying DENINO a substantial portion of the funds raised from ICO investors for their touting efforts, despite knowing that they were required to disclose such compensation under federal securities laws. Furthermore, in several instances during this ICO touting scheme, DENINO and KIMBERELY took active steps to conceal their secret compensation arrangements with ICO issuers from ICO investors, and DENINO made false and misleading statements and omissions to hide such deals from ICO investors. From approximately in or about July 2021 through in or about January 2022, DENINO and KIMBERELY engaged in various efforts to liquidate the digital asset proceeds of their ICO touting activities into United States dollars. -
ProfessionalJogger
