SEC v. PlexCorps, Dominic LaCroix, and Sabrina Paradis-Royer
Case No. 17-cv-7007 (CBA) (RML) (E.D.N.Y.)

On December 1, 2017, the SEC filed a Complaint against PlexCorps, Dominic LaCroix ("LaCroix"), and Sabrina Paradis-Royer ("Paridis-Royer") (collectively, the "Defendants"), and at the same time, sought and obtained temporary restraining orders, to stop the Defendants' dissemination of a series of material false and misleading statements and the misappropriation of investor assets in connection with the illegal offering for unregistered securities known as PlexCoins through the PlexCoin Initial Coin Offering ("ICO"). In its complaint, the SEC alleged that PlexCorps, and its proprietors Lacroix and Paradis-Royer, fraudulently raised millions of dollars in virtual and fiat currency from the unregistered sales of PlexCoin based on a series of false and misleading statements to potential and actual investors, including misrepresentations about the size and scale of PlexCorps' operations, the use of funds raised in the PlexCoin ICO, and the amount of funds raised in the PlexCoin ICO. The SEC charged the Defendants with violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b- 5], and Section 17(a) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. § 77q(a)]; and Lacroix and PlexCorps with violations of Sections 5(a) and 5(c) of the Securities Act [15 U.S.C. §§ 77e(a), 77(e)(c)]. See the SEC's Complaint.

On October 2, 2019, the U.S. District Court for the Eastern District of New York (the "District Court"), entered a final judgment against PlexCorps, Lacroix, and Paradis-Royer (the "Final Judgment"). Pursuant to the Final Judgment, the Defendants, without admitting or denying the allegations in the SEC's Complaint, are enjoined from further violations of Section 17(a) of the Securities Act, and Section 10(b) of the Exchange Act and Rule l0b-5 thereunder, and Lacroix and Paradis-Royer are additionally enjoined from violations of Sections 5(a) and 5(c) of the Securities Act and from participating in any digital-securities offerings. All Defendants are ordered to disgorge, on a joint and several basis, $4,563,468 in ill-gotten gains from the PlexCoin ICO plus $348,145 in prejudgment interest, and Lacroix and Paradis-Royer are ordered to each pay a $1,000,000 civil penalty. The Final Judgment requires the Defendants to forego their rights to the entirety of the investor funds seized by a receiver appointed by the Superior Court of Quebec, totaling approximately $4 million (the "Canadian Receiver"), as well as $800,000 in investor funds held by U.S.-based entities that were subject to an asset freeze issued by the District Court. See the Final Judgement.

The SEC will post on this webpage filings with the District Court concerning the disposition of collections on the Final Judgment and any information that the Commission seeks to communicate to investors.

At this time, the Commission anticipates coordinating any distribution to harmed investors with the Autorité des marchés financiers of Quebec ("QAMF"). On or about November 20, 2019, the SEC staff directed an Investor Notice of Distribution Plan to individuals and entities identified as having expressed interest in, or invested in, the ICO. If you invested in PlexCoin through the ICO, please review this notice.

The Canadian Receiver's website, which currently includes information in both English and French, including notices to investors, is located here.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov