Jul 21, 2020
You do the crime, you do the time – so they say, but sometimes punishments for identical crimes are unequal and even puzzling. Let us start with the case of Charles C. Liu and Xin Wang, a married couple and U.S. citizens in California, who raised over $27 million USD from Chinese companies claiming they were going to use these investments to build a cancer treatment centre.
It was discovered by the Security and Exchange Commission (SEC) that the couple did not use all of the funds towards their stated project, and that once they secured the money, although they had the land, no development work was being undertaken. What the SEC did find was that $11.8 million USD was transferred back to Chinese companies owned by Liu and other monies were used for personal expenses by the couple. The courts ruled that the couple had to pay a disgorgement award requiring the couple to pay back the full amount they had obtained from the investors, in addition to a civil penalty of US$8.2 million.
But let us compare this to Telegram, the company who raised $1.7 billion USD during what the SEC deemed an illegal securities sale. They agreed to return $1.2 billion to investors and they are only going to be paying an $18.5 million penalty. So, what about all the interest on the $1.7 billion raised (and banked) and the difference in amounts, a mere $500 million USD. Where is that going?
Join me, Aviva Ounap, and Jonathan Dunsmoor of Dunsmoor Law, as we look at SEC justice, and compare fines, penalties and disgorgements of these two cases and wonder about the logic behind their punishments.
Tune in to CryptoAndBlockchainTalk.com, the podcast that makes you smarter about the worlds of blockchain and cryptocurrency, and everything in between. It is our mission to interview the brightest stars in this space, bringing them straight to your ears for your listening pleasure, and best of all, for free! In addition, all interviews are streamed on Crypto24Radio.com, bringing you the latest news on all things blockchain and crypto-related all day, every day - plus music! So stay tuned and enjoy. We LOVE having you as our listener, and friend!
SUBSCRIBE to our social channels and never miss an episode: SPOTIFY iTunes Stitcher Soundcloud Google Play Music Tunein Castbox Podchaser Pocket Casts Overcast iHeartRadio PlayerFM YouTube Acast Podnews Castbox Poddtoppen Feedspot Kimcoin PodBean Chartable LISTEN NOTES PodParadise Bullhorn