Topic: [ANN] [IMO] DRC - a closed private tokenized membership club (Read 2214 times)

Press Release
SEC Exposes Two Initial Coin Offerings Purportedly Backed by Real Estate and Diamonds

FOR IMMEDIATE RELEASE
2017-185

Washington D.C., Sept. 29, 2017?

The Securities and Exchange Commission today charged a businessman and two companies with defrauding investors in a pair of so-called initial coin offerings (ICOs) purportedly backed by investments in real estate and diamonds.

The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities, and the digital tokens or coins being peddled don't really exist. According to the SEC's complaint, investors in REcoin Group Foundation and DRC World (also known as Diamond Reserve Club) have been told they can expect sizeable returns from the companies' operations when neither has any real operations.

Zaslavskiy allegedly touted REcoin as "The First Ever Cryptocurrency Backed by Real Estate."  Alleged misstatements to REcoin investors included that the company had a "team of lawyers, professionals, brokers, and accountants" that would invest REcoin's ICO proceeds into real estate when in fact none had been hired or even consulted. Zaslavskiy and REcoin allegedly misrepresented they had raised between $2 million and $4 million from investors when the actual amount is approximately $300,000.

According to the SEC's complaint, Zaslavskiy carried his scheme over to Diamond Reserve Club, which purportedly invests in diamonds and obtains discounts with product retailers for individuals who purchase "memberships" in the company. Despite their representations to investors, the SEC alleges that Zaslavskiy and Diamond have not purchased any diamonds nor engaged in any business operations. Yet they allegedly continue to solicit investors and raise funds as though they have.

The SEC obtained an emergency court order to freeze the assets of Zaslavskiy and his companies.

The SEC's Office of Investor Education and Advocacy recently issued an investor alert warning about the risks of ICOs.

"Investors should be wary of companies touting ICOs as a way to generate outsized returns," said Andrew M. Calamari, Director of the SEC?s New York Regional Office. "As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology."

The SEC's complaint, filed in federal district court in Brooklyn, N.Y., charges Zaslavskiy, REcoin, and Diamond with violations of the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions and disgorgement plus interest and penalties. For Zaslavskiy, the SEC also seeks an officer-and-director bar and a bar from participating in any offering of digital securities.

The SEC's investigation, which is continuing, has been conducted by Jorge Tenreiro, Pamela Sawhney and Valerie A. Szczepanik. The case is being supervised by Lara S. Mehraban. The SEC encourages victims of the alleged fraud to contact Ms. Szczepanik at (212) 336-1100.

The Securities and Exchange Commission today has charged both a diamond and a real estate initial coin offering scheme with defrauding investors.

REcoin, which promoted itself as the first cryptocurrency-backed real estate company and DRC World, a diamond company, are owned by businessman Maksim Zaslavskiy. In a statement, the SEC accuses Zaslavskiy of selling unregistered securities and coins that don’t exist to unsuspecting investors under these companies.

Zaslavskiy allegedly told these investors they could expect “sizeable returns” from each operation, all the while misstating how their money would be invested and misrepresenting how much had already been invested, according to the SEC.

The U.S. government has since obtained an emergency court order to freeze Zaslavskiy’s and his companies’ assets.

Though these appear to be the first initial coin offerings, or ICO’s, to come under fire for fraud, they certainly won’t be the last.

As New York Times columnist Kevin Roose so aptly described the nature of ICO’s, “Imagine that a friend is building a casino and asks you to invest. In exchange, you get chips that can be used at the casino’s tables once it’s finished. Now imagine that the value of the chips isn’t fixed, and will instead fluctuate depending on the popularity of the casino, the number of other gamblers and the regulatory environment for casinos. Oh, and instead of a friend, imagine it’s a stranger on the internet who might be using a fake name, who might not actually know how to build a casino, and whom you probably can’t sue for fraud if he steals your money and uses it to buy a Porsche instead. That’s an I.C.O.”

Obviously, the SEC can still prosecute for fraudulence. The government agency has also been worried about ICO’s, recently warning the public by issuing an investor alert in July, telling potential investors to be wary of unsolicited offers and unbelievable claims such as high returns.

“Investors should be wary of companies touting ICOs as a way to generate outsized returns,” SEC spokesperson Andrew M. Calamari followed up in the statement out today. “As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology.”

Do I understand correctly that I can become a member of the club even with one token but to get into the private club I need a more tokens?

First, you will be taught how to make money and make a profit. Secondly, all information about the ownership of the members' tokens is stored on the blockchain - a cryptographically protected and distributed among all club members database. This ensures the absolute safety of your investments.

why i should joining it? what benefits it give to me?

yes, I think you are right. Well, this is definitely my opinion, it seems to me that somebody else has to confirm

oh i has one more q

if drc private club then all the other part of idea will also be private?

Do I understand correctly that I can become a member of the club even with one token but to get into the private club I need a more tokens?

So what exactly do you get as benefits if you become a member of this private club by purchasing some tokens, I did not get what are the actual benefits for members?

for me, the argument is how well-thought-out if the money collected during the ICO does not correspond to the minimum funds required by the firm, money is returned to the supporters, and the ICO is considered unsuccessful, but during IMO there is no minimum requirement for capital to consider it successful. As soon as one person joins the exclusive Diamond Reserve club with the purchase of one DRC, the Club is a success

when I can get my bonus percents?

Max Zaslavskiy has the same team as before?  Are there some modifications, or not?
Because the results are also depended on it