The Securities and Exchange Commission (SEC) has secured a final judgment against siblings who orchestrated fraudulent crypto scheme Ormeus Global.

The U.S. District Court for the Southern District of New York has entered a final judgment against John and JonAtina (Tina) Barksdale ordering permanent injunctions, disgorgement with interest, and civil penalties.

The SEC’s complaint alleged that from June 2017 to March 2022, the Barksdales raised tens of millions of dollars through two unregistered fraudulent offerings of securities involving a crypto asset called “Ormeus Coin.”

In addition, the SEC alleged that from June 2017 to April 2018, through a multi-level marketing business called Ormeus Global, the Barksdales offered and sold subscription packages that included Ormeus Coin.

As alleged in the complaint, to promote the offerings, John Barksdale held roadshows around the world while he and his sister, Tina, led the production of social media posts, YouTube videos, press releases, and other promotional materials.

The complaint also alleged that the defendants falsely claimed that Ormeus Coin was supported by one of the largest crypto asset mining operations in the world, even though they abandoned their mining operations in 2019 after generating less than $3 million in total mining revenue.

As further alleged, in many of these investor communications, the defendants falsely stated that Ormeus Coin had a $250 million crypto asset mining operation and was producing $5.4 million to $8 million per month in mining revenues.

The judgment, entered on the basis of default, enjoins the Barksdales from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It further enjoins them from violating Section 5 of the Securities Act by engaging in the unregistered offer or sale of securities.

The Barksdales were ordered to pay disgorgement of $46,297,463 on a joint and several basis and prejudgment interest of $10,044,822. The Barksdales were also ordered to each pay a civil penalty of $23,148,731.