The founder of the ICO promoted by Floyd Mayweather pleaded guilty to fraud
Robert Farkas is negotiating a plea bargain for his role in Centra Tech’s fraudulent initial coin offering (ICO) that he commissioned from Floyd Mayweather Jr. and DJ Khaled.
U.S. District Judge Lorna Schofield has granted Farkas‘ attorneys‘ request to schedule a hearing for next week, and details of the proposed plea have yet to be disclosed.
The trials of Farkas and his fellow Centra founder Sohrab Sharma were delayed until September, as the coronavirus quarantine took effect in March.
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Centra Tech’s founder will negotiate a plea bargain
Farkas and Sharma face charges of defrauding investors of more than USD 25 million between July and October 2017 through ICO Centra Tech.
Centra Tech falsified license agreements with Visa, Mastercard and Bancorp to publicize the offer, before paying for the endorsement of professional boxer Floyd Mayweather Jr. and popular musician DJ Khaled.
Raymon Trapani was also charged with operating the ICO, however, he pleaded guilty to nine counts in July 2019. The trio invented Centra Tech while operating a luxury car rental company in Florida.
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Celebrities are responsible
In November 2018, Mayweather and Khaled were charged by the United States Securities and Exchange Commission (SEC) with „illegal promotion of coin offerings“.
The SEC found that neither Mayweather nor Khaled had discussed their respective payments of USD 100,000 and USD 50,000 for promoting the offer to their followers on social networks. It also found that Mayweather did not discuss the $200,000 in payments he received for promoting two other ICOs.
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In total, Mayweather agreed to pay $300,000 in throat-cutting fees, a $300,000 fine, and nearly $15,000 in interest on prejudice for her role in promoting the three ICOs. Khaled paid the $50,000 throat cut, a $100,000 penalty, and nearly $3,000 in bias interest.
In February, actor Steven Seagal was charged by the SEC with illegally promoting the ICO Bitcoiin2Gen in 2018 without specifying that he was paid to support it. Although Seagal claimed that he had only received USD 157,000 for promoting the project, the plaintiff agreed to pay USD 330,000 plus USD 16,000 in interest for prejudice.18