VERI Fair Fund
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SEC v. Middleton et al., Case No. 19-cv-4625
On August 12, 2019, the SEC commenced an action against Reginald Middleton, Veritaseum, Inc., and Veritaseum, LLC (collectively, the “Defendants”). The SEC alleged that, beginning on April 25, 2017, the Defendants fraudulently raised approximately $14.8 million from the unregistered sales of digital securities called “VERI” based on a series of false and misleading statements to potential and actual investors, including misrepresentations about the potential profitability and viability of Veritaseum’s purported operations, the use of funds raised in the VERI initial coin offering (“VERI ICO”), and the amount of funds raised in the VERI ICO. The SEC further alleged that, after the VERI ICO, Middleton placed manipulative VERI trades on a digital asset platform to artificially increase its price and then publicly touted the price increases.
On November 1, 2019, the Court entered the Final Judgment that ordered the Defendants pay disgorgement of $7,891,600 and prejudgment interest of $582,535 and ordered Middleton to pay a civil penalty of $1,000,000. The Court created the Veritaseum Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. § 7246(a), combining the collected disgorgement, prejudgment interest, and civil penalties for distribution.
Notice: Extension of the Bar Date to Submit Claims
In accordance with the discretion granted by the Court, the Distribution Agent, in consultation with the Commission staff, has determined to extend the bar date for submission of claims until September 1, 2021. Therefore, the claims portal will remain open through September 1, 2021. All claims submitted no later than September 1, 2021 at 11:59 p.m. will be accepted. Claims submitted after September 1, 2021 will not be eligible for a distribution from the Veritaseum Fair Fund.
If you received VERI tokens between April 25, 2017 and August 14, 2019, you may be eligible for compensation from the VERI Fair Fund.