In September 2018, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Timothy Tilton Ayre, charging him with securities fraud and the illegal distribution of an unregistered cryptocurrency, according to a statement released on FINRA’s website. FINRA regulates the securities industry by focusing on investor protection and ensuring market integrity, and is overseen by the U.S. Securities and Exchange Commission.
According to the complaint, Ayre attempted to lure investment to his public company, Rocky Mountain Ayre, Inc. (RMTN), by selling unregistered cryptocurrency securities to the public that he touted as “the first minable coin backed by marketable securities.” Ayre stated that the cryptocurrency HempCoin was backed by RMTN common stock. As a result, more than 81 million HempCoin securities were sold on crypto exchanges. However, it seems that Ayre never registered HempCoin.
FINRA also alleges that from January 2013 through October 2016, Ayre made false statements regarding the nature of RTMN’s business dealings and financial statements, as well as the creation and unlawful distribution of HempCoin.
FINRA started a formal proceeding against RMTN by filing a complaint in September, and reminds the public that anyone named in a complaint can file a response and request a hearing. Ayre and RMTN may face fines, censure, suspension, or be barred by FINRA from the securities industry.
If you or someone you know has lost money because of broker or financial advisor misconduct, Lance McCardle and his team of experienced investment fraud lawyers can help. Our firm has helped hundreds of clients recover their losses due to broker fraud or negligence. Contact us today.