John Barksdale has been indicted on securities and wire fraud costs.
Barksdale stands accused of operating Oremus International, a $70 million greenback Ponzi scheme.
Barksdale’s indictment acknowledges Ormeus International fraud occurring between 2017 and October 2021.
For reference, BehindMLM reviewed and recognized Ormeus International’s securities fraud in June 2017.
Ormeus International’s unique Ponzi ruse was a buying and selling bot. This then modified to mining earnings, which is the topic of Barksdale’s indictment.
Barksdale (proper) arrange Ormeus International as a Panamanian shell firm operated out of Hong Kong.
The DOJ alleges Barksdale, recognized as John Albert Loar Barksdale;
perpetrated a scheme to promote a brand new cryptocurrency token named Ormeus Coin (ORME) by means of false representations.
By means of a sequence of white papers, in- individual roadshows, on-line webinars and movies , social media platforms, and different advertising and marketing supplies accepted by Barksdale … Barksdale falsely represented, amongst different issues, that Ormeus Coin was a digital cash system secured by a $250 million cryptocurrency mining operation, which was one of many largest such operations on this planet.
To perpetuate the Ormeus International false representations, Barksdale pushed out advertising and marketing supplies depicting
images of a purported Ormeus Coin mining facility , deceptively referenced an “Ormeus Reserve Vault” (“ORV” ) that saved over 3,000 Bitcoin purportedly derived from Ormeus Coin ‘ s mining operations that was represented as securing the worth of Ormeus Coin, and falsely acknowledged that Ormeus Coin ‘ s mining revenues exceeded $5 million on a month-to-month foundation.
Ormeus International’s fraudulent advertising and marketing claims featured on Ted Nuyten’s BusinessForHome;
Whether or not cash modified palms between Barksdale and BusinessForHome is unclear.
In fact, Ormeus’ s mining operations by no means approached a price near $250 million and by no means produced revenues exceeding a million {dollars} in any month, and the Bitcoin saved within the “Ormeus Reserve Vault ” belonged to a 3rd celebration.
Particularly detailing Ormeus International’s fraudulent mining representations, Barksdale’s indictment states;
In or about December 2017, BARKSDALE directed the switch of roughly $10 million in Bitcoin for the acquisition of mining tools for Ormeus to the Mining Provider, however no mining tools procured with that cost was put into operation till at the very least in or about March 2018.
In February 2018, Barksdale revealed Ormeus International’s whitepaper, through which he claimed Ormeus International had
already commenced its cryptocurrency mining operation by means of non-public funding and isn’t looking for public cash by means of an ICO.
Featured within the whitepaper was an “precise photograph of Ormeus Coin(‘s) Mining Facility”.
This identical {photograph} was used a number of occasions in advertising and marketing supplies all through early 2018 to create the misunderstanding that it was a photograph of an Ormeus mining facility.
That photograph nevertheless was a knowledge middle in Montana, owned by a third-party.
Ormeus International represented it owned the ability. In actuality they owned “not more than two rows of miners”.
After the discharge of the White Paper … Barksdale continued to signify that Ormeus Coin was backed by a $250 million cryptocurrency mining operation by means of at the very least in or about April 2018.
Like MLM crypto Ponzis splash promos on Dubai’s Burj Khalifa at this time, in 2018 Ormeus International perpetuated its fraudulent mining claims by means of Occasions Sq. advertisements.
On or about February 9, 2018, Ormeus Coin ran an commercial on a jumbotron in Occasions Sq. in Manhattan, New York, which proclaimed, in a caption above an enormous ORME image , “$250 Million Cryptocurrency Mining Farm Revealed in Authorized Audit by Ormeus Coin.”
In fact, Ormeus Coin’s cryptocurrency mining operations by no means approached a price near $250 million.
To masks his Ponzi scheme, Barksdale represented Ormeus International’s mining operations had been producing “over $5 million in presently month-to-month income”.
Opposite to those public claims, Ormeus’ s mining operations didn’t produce revenues exceeding a million {dollars} in any month.
With a view to proceed advertising and marketing Ormeus International’s Ponzi scheme, Barksdale represented ORME was backed by ORV, an inside shitcoin, which in flip was backed by “income from Ormeus’s mining operations”.
This was represented by a bitcoin steadiness, featured on ORV’s standalone web site.
From at the very least in or about January 2019 by means of at the very least in or about October 2021, the ORV web site displayed that the ORV persistently contained roughly 3,081 Bitcoin in purported mining income, which was valued at between roughly $10 million and $188 million, relying on the worth of Bitcoin through the interval.
The issue is the bitcoin steadiness was owned by another person. It had nothing to do with Ormeus International.
Opposite to the advertising and marketing supplies … the Bitcoin property within the ORV had been owned and managed by Particular person- 1, and weren’t generated by Ormeus’s mining operations and didn’t belong to
Ormeus (or) Barksdale.These Bitcoin property due to this fact didn’t safe the worth of Ormeus Coin.
Barksdale maintained the bitcoin mining ruse till at the very least October 2021.
What’s notably attention-grabbing about Barksdale’s indictment is it hones in on Barksdale’s fraudulent representations.
Apart from acknowledging Ormeus International solicited $70 million from 12,000 traders, monetary injury to shoppers isn’t factored in.
I’m conscious the SEC have filed parallel civil proceedings in opposition to Barksdale, I determine shopper hurt would be the focus of these proceedings.
Barksdale indictment particulars one rely every of
- conspiracy to commit securities fraud;
- securities fraud;
- conspiracy to commit wire fraud; and
- wire fraud
Barksdale’s sealed indictment was filed underneath seal on November ninth, 2021.
If convicted, Barksdale is dealing with as much as 65 years in jail.
In a press-release issued on March eighth, the DOJ request
any people who imagine they could have been the sufferer of the alleged crimes perpetrated in reference to Ormeus International or Ormeus Coin can contact HSI at ice.gov/webform/ice-tip-form or [email protected].
In line with the DOJ’s press-release, Barksdale “was arrested overseas”. We’re presuming he’s within the course of or has been extradited again to the US.
This might be Barksdale’s second arrest overseas. In 2019 Barksdale was arrested in Thailand as a part of an Ormeus International fraud investigation.
At time of publication Barksdale’s felony case has but to seem on Pacer. I’ll verify again tomorrow and publish any updates from the case docket beneath.
Replace ninth March 2022 – As suspected, the SEC’s criticism focuses far more on shopper hurt.
The SEC alleges John and Tina Barksdale solicited $124 million from over 20,000 Ormeus International traders.
BehindMLM has coated the SEC’s case agains the Barksdales individually.
Replace #2 ninth March 2022 – John Barksdale’s felony case hasn’t appeared on Pacer.
I’m taking this as we received’t see something pop up until he’s extradited to the US. I’ll proceed to verify for a case entry periodically.
Replace seventeenth March 2022 – John Barksdale’s case has appeared on Pacer. As of but there’s no filings indicating his present standing.
There have been no additional updates for the reason that DOJ disclosed Barksdale was arrested overseas.
Replace 1st September 2022 – John Barksdale, nonetheless wished by US authorities, has turned up in Dubai.