A Nigerian man, with no ties to Arizona businesses has been order by the Arizona Corporation Commission to pay $2,500 in restitution and a $25,000 administrative penalty for committing securities fraud in connection with cryptocurrency and other alternative investments.
In its default order, the Corporation Commission found Abuchi Okoye of Nigeria and his affiliated company Coininvest sold the cryptocurrency and other alternative investments under the pretense of being Arcadia Capital, LLC and Arque Capital, LTD, two Arizona securities dealers registered with the Commission’s Securities Division.
The Commission found Okoye and Coininvest misrepresented their investment program as safe and secure with an assured profit when cryptocurrency is often considered to be a volatile investment. Okoye and his company solicited investors via pirated websites and social media accounts that closely resembled the registered securities dealer.
The Commission’s Securities Division issued a temporary cease and desist order in October of 2020 against Abuchi Okoye and Coininvest to stop offering and selling investments in cryptocurrency and other alternative investments, but Okoye and his affiliated company did not respond to the allegations or request a hearing.