SEC Charges Promoter for Role in Fictitious Crypto Trading Program
Litigation Release No. 25569 / November 3, 2022
Securities and Exchange Commission v. Jeremy K. Rounsville), No. No. 3:22-civ-2458-D (N.D. Tex. filed November 3, 2022)
The Securities and Exchange Commission announced today that it filed charges against Jeremy K. Rounsville, a resident of Hunt County, Texas, for his role in offering and promoting a fictitious trading program marketed under the name of Arbitraging.co.
The SEC's complaint charges Rounsville with violating certain of the registration and antifraud provisions of the federal securities laws. Specifically, the complaint alleges that Rounsville violated Sections 5 and 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, as well as Rule 10b-5 thereunder. Without admitting or denying the SEC's allegations, Rounsville consented to entry of a judgment, subject to court approval, permanently enjoining him from violating these provisions and from participating in future securities offerings; ordering him to pay civil penalties of $207,183; and imposing an officer-and-director bar against him.
The SEC's investigation was conducted by Ty J. Cottrill with assistance from trial attorney Nicholas Heinke and paralegal Judy Bizu. The case was supervised by Laura M. Metcalfe and Jason J. Burt.